Where The Business Was

• Tourism industry, event management business
• Owners wanted to transition to next generation

Problem

• Four directors (two couples in the mid fifties) wanted to take a back seat from the day-to-day operations of their business in favor of their children who couldn’t wait to take over the reins

Solution

• Implement a transition plan so that the directors could retire from their day to day operational roles but still retain ownership of their business

Implementation

• Put in place job descriptions for all key staff
• Implement financial and non-financial KPIs and a quarterly reporting system
• Conduct retirement planning sessions for each director
• Design performance incentives for second generation managers

Results

• Growth and profitability increased as a result of delegating additional responsibilities to the General Manager (a daughter of one of the founders) and her team
• The directors still enjoy the benefits of an ongoing association with the business they founded but without the need for day-to-day involvement
• Directors fees and dividends have consistently grown since time of exit
• The next step will be to consider future equity options for the second generation managers