Rexford Cattanach discusses the importance of business succession planning

Listen to the interview on the Business Innovators Radio Network: https://businessinnovatorsradio.com/interview-with-rexford-cattanach-president-of-keats-group-discussing-business-succession-planning/

Rexford Cattanach, President of Keats Group, on the topic of business succession planning. Rexford shares his journey from Deloitte Consulting to specializing in acquisitions and compensation planning. He emphasizes the importance of implementing successful plans and how his background in management consulting has helped him in the financial services industry.

Succession planning is a critical aspect of business ownership often overlooked or pushed aside by many business owners. In a podcast episode featuring Rexford Cattanach, succession planning was shown to be a vital component of a business owner’s long-term strategy and one that makes a direct contribution to higher valuation and a more favorable tax situation. Despite its significance, many business owners fail to prioritize succession planning well before their exit.

The reasons cited in the episode for not emphasizing succession planning earlier in the business lifecycle are understandable and reasonable: a lack of time and money, and the day-to-day tactical demands of running the business. Financial advisors and wealth managers bear some responsibility by not presenting a clear road map and return on investment for undertaking succession planning.

Furthermore, the personal and emotional aspects of succession planning, including difficult conversations about aging, mortality, and the future of the business, can make business owners hesitant to address the topic. Confronting issues like partner separations, employee readiness, and the overall state of the business is not for the faint of heart but is a crucial aspect of business management.

To address the challenge of prioritizing succession planning, business owners are advised to take concrete steps, such as creating a written plan, seeking mentorship or guidance from experienced professionals, and conducting a succession readiness assessment. By acknowledging the need for transparency, engaging employees in the process, and seeking external support, business owners can overcome the barriers.

Maintaining transparency and open communication with employees about the owner’s exit can create a more positive and supportive environment during the succession process and a more successful transition or sale.

About Rexford Cattanach

Rexford is president of Keats Group LLC, a comprehensive financial advisory firm. He works with successful families and family businesses to implement effective income planning, tax planning, and asset protection solutions that are administratively practical. He manages our service relationships with specialists for complex tax and estate planning, business transitions, and compensation planning.

He writes and speaks on various succession and compensation planning topics for professionals and business owners. He is the lead author of InBusiness, which features topics of interest to Private Clients.

Mr. Cattanach has served on community boards and in other leadership roles in the Twin Cities, including the Board of Directors of Lakeview Health, a sole corporate member of HealthPartners health system, where he was chair of the physician and executive compensation committee, a member of the finance committee and the ad hoc committee overseeing the Lakeview Health integration with HealthPartners.

Rexford is a fiduciary, independent financial advisor who has completed over one hundred business valuations and transitions. For 19 years, he has volunteered as an academic tutor and mentor to at-risk K-12 children at Good Neighbor Center in Saint Paul, Minnesota. To recharge, he enjoys the quiet scenery of trail hiking, road biking, and Nordic skiing.

Learn More: https://www.keatsgroup.com/

Keats Group LLC is a comprehensive financial services company that provides investment, tax, and estate planning, asset protection, and pre-and post-sale guidance to private clients and business families. Keats Group and its agents and employees do not provide legal or tax advice. Investment services are offered as a fiduciary Independent Advisor Representative of Advisor Share Wealth Management, a Registered Investment Advisor (RIA).