Succession Planning Overview Gregg Hadley, PhD Assistant Director Agriculture, Natural Resources, and Community Development K-State Research and Extension ghadleyksu.edu 785-532-5838 Why? Grandma and Grandpa (The Past Generation) Mom and
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Presentation Transcript
01
Succession Planning Overview Gregg Hadley, PhD
Assistant Director – Agriculture, Natural Resources, and Community Development
K-State Research and Extension
ghadley@ksu.edu
785-532-5838<br>
02
Why?<br>
03
Grandma and Grandpa
(The Past Generation) Mom and Dad
(The Current Generation) Farming Brother and Sister (The Next Generation) Non-Farming
Brother and Sister The Brothers’ and Sisters’
Spouses The Brothers’ and Sisters’ Kids (The Future)<br>
04
What is Success?<br>
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An Ongoing Farm & A Happy Family<br>
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Rules & Promises<br>
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Commonly used terms
Transition planning
Estate planning
Succession planning What is Succession Planning?<br>
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Refers to planning for any change
Expansion
Contraction
New technology Transition Planning<br>
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Refers to how assets will be passed on to heirs Estate Planning<br>
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So, What is Succession Planning?<br>
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My perspective
Estate Planning is about how assets will be transferred to heirs
Succession Planning involves discussing so much more:
Estate planning
Establishing the business philosophy rights
Leadership, management and workload rights
Determining how the partners will work and communicate together
Succession feasibility Estate Planning & Succession Planning<br>
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Estate Planning is One Piece of the Succession Planning Pie<br>
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Do You Need a Detailed Succession Plan?<br>
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Current owners & managers:
Do you always agree with your successor’s business philosophy, management ideas and decisions? Test Questions to Determine if You Need Succession Planning<br>
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Future owners & managers:
Do you always agree with the current owner/manager’s business philosophy, management ideas and decisions? Test Questions to Determine if You Need Succession Planning<br>
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If You Said No, You are Honest
and Need Succession Planning<br>
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If You Said Yes, You are Probably a Liar or Kidding Yourself!<br>
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A Common Belief Most successions fail due to the lack of a good estate plan<br>
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Disagreements about business philosophy
Inadequate earning capability
Transfer of work and management decision making
Emotional roadblocks
Poor communication
Death, disease, disability, disaster, divorce (5 Ds)
Poor estate plans Not Always<br>
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Most Farm and Ranch Situations Require a Detailed Succession Plan<br>
Who Should Be Involved in Succession Planning?<br>
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Grandma and Grandpa
(The Past Generation) Mom and Dad
(The Current Generation) Farming Brother and Sister (The Next Generation) Non-Farming
Brother and Sister The Brothers’ and Sisters’
Spouses The Brothers’ and Sisters’ Kids (The Future)<br>
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So, When Should I Begin Succession Planning?<br>
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On-going process
The actual succession plan should be developed before the next generation starts working for the farm in a career position
The plan should be reassessed frequently
Never know when one of the 5 Ds will hit Today!<br>
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It Can Be A Lengthy Process<br>
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Succession Planning Can Be Stressful!<br>
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Start Today! It Is So Worth It!<br>
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Good Luck With Your Farm or Ranch Succession! Thank You!<br>
