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W W W. M A I N E B I Z . B I Z 21 M AY 1 3 , 2 0 1 9 says Jean. "I'm not the therapist, but we look at their financial and emotional readiness to think about succession plan- ning. Emotional barriers are often more of a challenge than financial ones." Family-business tensions ose who advise family-owned busi- nesses say that emotions also run high in decisions about passing the baton to the next generation. "Emotions are difficult to separate in a family business," says Brien Walton, director of Husson University's Center for Family Business in Bangor, "so the CEO may overlook the lack of commitment or competence of their favorite child because they want that particular child to represent the family. More second- generation business owners have failed for this reason more than any other." Walton's recommendation: "e selection process should be no differ- ent from hiring any top executive in a non-family business." Peter Plumb of Portland law firm Murray Plumb & Murray also suggests greater communication among family members to avoid unrealistic assumptions. "Business owners who hope and pray that the business will somehow stay in the family are the ones that really need to start having family meetings early on," he says, recommending an exit plan from the get-go: "e day you walk into the office as the chief executive is the day you want to start planning your exit." And Catherine Wygant Fossett, executive director of the Portland-based Institute for Family-Owned Business, recommends designating someone in the family as a planning "champion" who holds everyone accountable. To help its members manage business transi- tions, the institute's Next Generation Peer Advisory Group's "Leaders in Transition" holds regular information sessions, including one planned for June 20 at Husson's Westbrook campus. A range of scenarios While there are several ways for own- ers to exit their business and retire, Bill Haskell of Bellview Associates in Ellsworth boils it down to three options: Sell to a competitor, finan- cial investor or to employees through an ESOP. He sees the last as the best option for firms whose owners plan to be around for the next few years, as with Landry/French, which he advised on its ESOP. "It's also a good recruiting tool for new employees because everyone that comes in is going to be a part owner," he says. French says that's definitely the case, along with ensuring the Landry/ French name lives on: "We want to see our names on the sign and new build- ings being built when we're 90." Renee Cordes, Mainebiz senior writer, can be reached at rcordes @ mainebiz.biz S O U R C E : Business Enterprise Institute, Denver Colo., 2016 Business Owner Survey Report HOW LONG BEFORE OWNERS WANT TO EXIT THEIR BUSINESSES REASONS WHY OWNERS DO NOT HAVE WRITTEN EXIT PLANS David Jean, Altus Exit Strategies, describes his work as "holistic exit planning" rather than just transactions. That work usually begins with a readiness assessment of 22 questions to business owners. 2014 2016 I'll act when I'm ready 12% 37% Other issues are more pressing 14% 31% My industry does not lend itself to the easy purchase/sale of the business 17% 29% Insufficient business value 22% 27% I have no obstacles to exiting 13% 26% No successor 17% 23% I'm too busy 10% 22% I don't feel a sense of urgency about this issue 22% 18% F O C U S P H O T O / T I M G R E E N WAY 33% 22% 24% 12% 9% 0–3 years 3–5 years 5–10 years 10+ years Never

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