Don’t wait too long: The importance of succession planning
Given many firms in the real estate space recently have taken on the task of succession planning, it seems like an opportune time to encourage those who have put it on the backburner to change their priorities. We talk with senior executives of fund managers and operating companies, and one thing is clear — they are focused on growth, their investors, their P&L, their employees, and not what happens if they aren’t there anymore. They see succession planning like writing a will — a task for the day after tomorrow. A day that never comes. We tell our clients implementing a succession plan is critical to a firm’s long-term success, value and longevity. It is particularly vital for companies where the current successes and/or value are critically tied to one or a handful of individuals.
The real estate sector is characterized by personal relationships, reputations, credibility-tied individual investing prowess, and entrepreneurs who have created significant wealth fro