David never really wanted to come into the family business. His heart was to do overseas missions work and he spent a good portion of his 20s trying to find his place in that. Still all the time he felt the pull from his family and from the business itself. Any contact he had with it seemed to stoke more and more of an interest. And then his father got sick and he was needed, and before long he found himself in the role of company President and he just seemed to be made for the job.

It took a while, but David began to see more and more the mission field that lay before him.

There were the 100 employees and their families, and the customers and suppliers, and the local community to engage with. Under David’s leadership, the company made an excellent place for itself in its industry, and by the grace of God enjoyed more good years than bad. And it made a difference in the lives of many people.

The years flew by, and David was now thinking about legacy and about how to pass the company on to new owners and a next generation of leadership.

His main concern had become the preservation of the company’s culture – especially the company’s commitment to its key employees and to charitable giving. At the same time, David was tired and experiencing more than his share of physical issues.

It was time to do more than think about succession.

David had a Board of Advisors who had been helping him carefully think through his options. There were no family members in the picture to carry on the company for another generation. A sale of the company to a strategic or financial buyer was an option.

It would mean a big payday and a full break from all of the responsibilities that David had been carrying for years, but undoubtedly it would also mean a certain change in the company’s culture over time and lots of uncertainty for the company’s key people.

The possibility of selling the company to its employees emerged as potentially a way to meet several objectives, but it would also mean David remaining engaged with the company as it paid him over time. It might take as much energy as actually running the business himself.

Though his advisors saw an outside sale as easily the best for David personally, they had no doubt that David would decide what to do based upon more than what was just best for him. It’s a big part of why they enjoyed working with him so much.

Consider the following:

1. What should be guiding David’s evaluation of his succession options?

2. What do you see as David's priorities as a business owner?

3. When is it the right time to think about succession?

4. What constitutes success when it comes to succession?

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