I’m Not Ready!

You know how every Fourth of July there are countless articles and television spots warning holiday celebrants of the danger of using fireworks and how the average person should leave the cherry bombs, M-80s and Roman Candles to the professionals?

Then invariably you read about some unfortunate – and most likely careless – soul who waited a millisecond too long and had one detonate while still in their hands – often severing off fingers or requiring someone call 911 like yesterday.

Some people will never learn no matter how many warnings they receive.

While not quite on as drastic a level as having an M-80 explode in your palm, the accounting profession has, historically been a tough group to catch on – especially when it comes to succession.

I can recite virtually every scenario and excuse I’ve encountered at least twice but that would occupy far more space than I have been afforded here.

But earlier this week I had an exchange with a practitioner that tells me the fight to instill a sense of urgency to begin succession planning is far from over.

A sole owner (age 69) called in our offices with a question surrounding the tax treatment of a typical merger deal. While much depends on the deal itself I went through the pros and cons of a few scenarios and inquired as to whether he was in talks to merge.

“No, I’m not ready yet,” was his reply. “I want to work at least five more years before slowing down.”

Like the fireworks warning on the package label I told him that 5-7 years was the ideal time to begin succession planning.

“No, what I plan to do is to hire a young person to take over the business.”

Gee we’ve never heard that one before.

Despite my best efforts to convince him that 50,000 or so firms across the country have the exact same strategy he remained unmoved. I added that as a small owner with revenues under $1 million he would never be able to compete for talent again the larger firms in the area, never mind the regional practices who could really open their collective checkbooks.

Again he was unconvinced. So, I wished him luck and left the door open to call me if he had any questions. I doubt I will hear from him again.

After this,  I shudder to think what he does on July 4^th.