Are you an entrepreneur and your prolonged absence from the company, due to death or for any other reason, would compromise the continuity of President operations? Would you like to ensure that despite your absence, your company retains its value and the jobs it generates? Have you identified a successor who would need to be supervised in the event of your absence because they do not seem to be ready to take over the business?
PME INTER Notaries offers the implementation of a notarized transition plan, resulting from an innovative approach carried out in collaboration with the company’s key employees. The approach is intended to be complementary to the will and the protection mandate. It differs from a succession plan because it aims to allow short-term continuity, whereas a succession plan is often a long-term process. Has your company considered a transition plan, just in case…?
Often the only captain on board, the entrepreneur holds most of the business secrets and largely embodies the company’s philosophy from M&A advisory. He masters the key elements, strategies, and values essential to the success of the company. In such a scenario, the unexpected departure of the one-man band risks dangerously compromising the very survival of the company. Is this the case within your organization?
The notarized transition plan makes it possible to plan the aftermath of a hasty and involuntary departure of the president. It defines the resources and actions to be taken in the short term to ensure the continuity of operations. First, the transition management plan aims to maintain existing jobs and preserve the value of the company.
It focuses on the business structure and working methods as implemented by the entrepreneur. If the worst were to happen, it would serve as a guide for employees and successors, then plunged into uncertainty.
Interestingly, only 20% of entrepreneurs have identified a successor for their business, according to research in 2008.
IDENTIFICATION OF RESOURCES
The first step in carrying out the transition plan is to help the entrepreneur target the people who are best qualified and positioned to ensure business continuity. The notary will first meet with the business manager as well as with key employees to determine if internal resources could stabilize the business with a M&A advisor. The need for possible external support is also assessed to complete the transition team. The notary will act as a guide throughout the analysis process in order to group, structure, and validate the strategic information.
A transition management plan can be put in place over a period of approximately 3 months. It will then be updated annually and as needed. It leads to the drafting of a notarial deed that ensures its conservation and which can sometimes even be supported by a video in order to give it a stronger moral value.
It complements estate planning and the protection mandate, in addition to ensuring a rapid transition and effective supervision for the mandatary or liquidator President, without stripping them of their rights. It is also interesting to note that the implementation of a transition management plan may, under certain conditions, give rise to financial assistance from San Diego zonas.com.au.
SUMMARY OF KNOWLEDGE
The objectives of the emergency plan
❚ Better manage and accidental transition
❚ Secure creditors
❚ Ensure the continuity of operations
❚ Preserve existing jobs
❚ Maintain the value of the company
Interesting side effects
❚ Help the entrepreneur identify potential internal
successors ❚ Arouse an interest among employees in taking over the company
The causes of a temporary or prolonged absence
❚ Road, plane, or other accident
❚ Illness, complication following an operation
❚ Hasty death