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November 27, 2004
Importance of Planning for Family Businesses
The world of family business is full of examples of poor planning for succession or the sudden loss of the founding entrepreneur throwing the business into chaos. We recently saw a young and successful Nashville entrepreneur die suddenly at the age of 48. Although a tragic event for the family, this article in the Tennessean reports that they were fortunate to have plans in place to address succession in the business.
"Even when it was in its infancy, Bill Coakley operated SMS Holdings Corp. so it could operate without him....A little less than a month after being shocked by Coakley's death from a heart attack at age 48, SMS is now relying on such planning and foresight as the company, a group of four businesses with more than 10,000 employees and $200 million in annual revenues, must move on without its founder.
"Within days of his death in late October, the company appointed Keith Wolken, Coakley's brother-in-law and SMS chief operating officer, as its new chief executive officer. Meanwhile, the company is relying on the decentralized management structure created by Coakley to ensure customers know that business remains on track at the company."
As I told the reporter in an interview for this article, "I can't tell you how many wives and widows who've been put in a bad situation, where it can lead to a distressed sale of the company."
Posted November 27, 2004 08:12 AM
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Comments
I see the Tennessean biz reporters don't want to let The City Paper biz reporters corner the market on your availability.
I wonder if Mr. Hobbs had anything to do with this chain of events? :)
Mark
Posted by: Mark at November 27, 2004 10:07 AM
at Belmont University in Nashville, Tennessee. He consults with a variety of businesses on start-up and growth related issues, and with larger corporations on re-establishing entrepreneurial cultures within their organizations. Dr. Cornwall's current research interests include entrepreneurial finance and entrepreneurial ethics. He has authored or co-authored four books.
