The Question Some Company Owners Don’t Want to Deal With
C. John Bongovanni, who has been president of Bon Tools since his father, Carl’s 2017, died of a heart attack in 2017, said he had also dealt with a lack of succession planning. But what made the initial transition particularly difficult, he said, was a lack of insurance, which would have given him some sorting through the company’s finances and some breathing space for its more than 70 employees.
“The first thing was to circle the wagons and find out what that was,” he said. Key person insurance may have relieved him of some pressure he feels he buys other parts of the business, such as his real estate, from his mother and to compensate for his two sisters, who are not part of the business Huh.
Having worked at the company since he was young, Mr. Bongovanni said, little did he know what an infection might be when his father, a fit, trim 59-year-old, died.
“My father and I would talk about business, but it was exciting parts, not down and dirty,” Mr. Bongovanni said. “It was like, ‘Oh, did you see that piece of business?” I’m not sure we would have made everything out, but I could wish them. “
In situations like this, Erica Brammer, managing partner at BVA Group, a litigation, valuation and financial advisory firm, said the two main things to avoid are confusion over who is in charge and who knows what.
“The simplest form is the demise of the owner and it’s unclear how the business is going to pass on to someone else,” Ms. Brammer said. “Let’s say that there are many children.” What is best for the family? What is the best business? What was father’s intention? It gets even more complicated once you layer on other business partners or other employees who thought they were part of the business. “
At Interchange Capital Partners, Mr. Baume said he counseled clients who suddenly had to control the company to think about damage control.