In this episode, Ellie interviews Bradley J. Franc, Director with Houston Harbaugh Attorneys at Law and author of The Succession Solution: The Strategic Guide to Business Transition. The book was released in late April 2019 and quickly became an Amazon best seller in three categories including human resources and management, communication and management, and entrepreneur management.
During the interview, Ellie and Brad discuss what succession is (and is not), explore the common challenges with succession, and touch on Brad’s six stages of The Succession Solution, which are detailed in his book. He created this customized program to assist closely held businesses in their transition into the next generation and has followed it with hundreds of clients over the past three decades. The six stages include:
- Purpose: Why are we doing this? What are our core principles? What are our values? What does failure look like?
- Discovery: Where are we today?
- Challenge: What are our strengths, opportunities, threats, and weaknesses? What strategies can help us overcome the obstacles?
- Mission: What do we want this to look like in 3 years?
- Annual Review: To achieve our 3-year goal, what do we need to do this year?
- Quarterly Review: To achieve our 3-year goal, what do we need to do in the next 90 days?
In this episode:
- Meet Brad Franc (1:35)
- Why Brad wrote The Succession Solution (2:45)
- What is succession (and what is it not)? (6:00)
- Why is succession planning an unfamiliar challenge for business owners? (10:00)
- The facts about successful succession (12:45)
- The 5 W’s and How of Succession (21:40)
- What causes closely held business stumble in succession? (29:10)
- Top tip: Build a community to help with succession (37:27)
- The six stages of Brad’s Succession Solution (41:00)
- How to find Brad (48:10)
- Bonus questions (49:15)
Resources from this episode:
The Succession Solution: The Strategic Guide to Business Transition by Bradley J. Franc
Preparing Heirs: Five Steps to a Successful Transition of Family Wealth and Values by Roy Williams and Vic Preisser
The Back of the Napkin: Solving Problems and Selling Ideas with Pictures by Dan Roam
Start with Why: How Great Leaders Inspire Everyone to Take Action by Simon Sinek
The 12 Week Year: Get More Done in 12 Weeks than Others Do in 12 Months by Brian P. Moran and Michael Lennington
Notable and Quotable:
Succession is the transfer of ownership and/or management to the next generation of employees, family members, or a third party. —Brad Franc
Sixty percent of succession failures stem from a lack of communication and trust in the family setting. An additional twenty percent of failures can be attributed to ill-prepared successors. —Brad Franc
The longer you wait to plan the fewer options you’ll have. —Brad Franc
Select a process, start it and don’t stop. Even if it doesn’t work, you learn something. —Brad Franc
Guest Bio:
Bradley J. Franc is a Director with Houston Harbaugh Attorneys at Law. Practicing in the Business Law and Estates and Trusts Groups, Brad works extensively with private business owners, affluent individuals, closely held businesses, and technology-based firms to strategically integrate business, estate, and charitable planning objectives.
For many closely- and privately-held business clients, he also serves as outside general counsel and advises on key initiatives such as business and strategic planning, commercial transactions, corporate governance, and estate and succession planning.
Combining his legal experience with his experience as a former certified public accountant at an international CPA firm, he also advises on federal and state tax issues.
Brad’s work has included:
- The formation, acquisition and sale of manufacturing, high tech, and service-related companies
- Raising capital through private placements
- Negotiating and securing traditional as well as venture capital financing
- Structuring sophisticated estate and succession plans for closely held business owners and high net worth individuals
- Succession planning for closely held businesses
A frequent lecturer and author on closely held business and tax topics, federal and state tax issues, and estate planning, his article on tax provisions was cited by the Supreme Court of the United States. Brad also has appeared nationally on Bloomberg Television and Fox News websites for his business, tax, and succession planning advice. He has also been published in U.S. News & World Report.
Brad is also the creator of The Succession Solution(SM), a customized program to assist closely held businesses in their transition into the next generation.
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