These individuals are looking for effective exit strategies long before their parents, aunts, or uncles are ready to relinquish the reins. Avoiding Surprises Major disruptions can be avoided or circumvented if you get advance warning on an early exit. Constant, open, and ongoing communication between all members is essential. If a member spends more and more time with outside endeavors or expresses a desire to leave, you can get an early start on the transition and avoid unpleasant surprises. Your remaining management team must commit substantial time and energy to this effort.
Disruptions can occur in finance, operations, administration, and marketing.
As a result, you might not be able to fill every hole from within and may have to look outside the family. The selected outsider must not only be fully qualified, but also be able to easily assimilate within the organization. In an early exit, if the value of that member's share of the business has not been stipulated in the shareholder's agreement, you'll need to establish that value. Under normal circumstances, valuing a closely held business is complex and difficult. It becomes even more cumbersome when the departing member has a minority interest.