Hiring Professional Management
This transition alternative suits owners who prefer to hire professional managers instead of running the business themselves. They may instead prefer to play an oversight role in the capacity of board member or shareholder.
- Providing you fully prepare for this alternative – i.e. choose professional managers carefully – you can benefit from a strong annuity stream (dividends) and simultaneously enjoy the good life that retirement provides.
- Performance-related bonuses may likely be required, eroding the dividends to shareholders.
- Achieving a genuine alignment between the (self) interests of professional managers and shareholders is a challenge.
Important – The choice of transition strategy requires careful consideration of the consequences and trade-offs involved. We devote a lot of time with clients in choosing the smartest transition decision, that is aligned with individual circumstances.