The rate of partners retiring is set to skyrocket in the next few years, yet still only a handful of firms have a plan in place to handle the exodus. Development of future partners is also declining.
All this is according to the 2012 PCPS Succession Survey, a joint project of the AICPA Private Companies Practice Section (PCPS) and Succession Institute LLC.
Forty-two percent of senior partners cited a lack of confidence in the leadership ability of junior partners as the single biggest challenge to succession planning.
Most – 71% – didn’t have written expectations for new owners. When asked what they were doing to develop future leaders, 52% of sole proprietors with employees answered, “Nothing.”
The Journal of Accountancy said the best place to start is a three-year written plan. This plan should include details on client transition, training for future leaders and projections for the firm’s selling price.
You can learn more about getting started with a succession plan at the Cleveland Accounting Show. Steven Krisfalusy will cover several different succession models. Bob Gray will share a tool to help sole practitioners get started. What are you waiting for? Register today!