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Strategic Sme Succession Planning: Enhancing Value & Wealth Vis-À-Vis Organizational Diagnosis

Author

Listed:
  • Michael Flynn
  • Warren J. Rutherford

Abstract

Baby Boomers and other business owners are divesting their Small and Mid-Sized Enterprises (SME) for several reasons. Absent a well-planned Business Succession Plan, decades of knowledge, innovation, and wealth can be lost both to stakeholders and society alike. Although Succession Planning has been a strategic management part for many years, only recently has it become recognized for its importance, particularly as it relates to the creation of value that makes mergers, acquisitions, and strategic alliances possible, thus resulting in the continuation of an SME’s past and current efforts. Only since 1991 has Intellectual Capital (IC) / Intangible Assets (IA) of SMEs start to become recognized as a trove of untapped wealth that could enhance the value and continuation of any organization. Notwithstanding the current difficulty in quantifying IC/IA, we propose that through the combination of strategic succession planning with organizational diagnosis may a forthcoming exit stakeholder find internal business assets that may be improved upon to maximize value and wealth for the SME, while simultaneously improving the chance of transition success at the time of exit execution. Exploration of this subject matter may serve to give Scholars and Practitioners fodder for theoretical/empirical research and practical application

Suggested Citation

  • Michael Flynn & Warren J. Rutherford, 2018. "Strategic Sme Succession Planning: Enhancing Value & Wealth Vis-À-Vis Organizational Diagnosis," Review of Business and Finance Studies, The Institute for Business and Finance Research, vol. 9(1), pages 85-94.
    • Handle: RePEc:ibf:rbfstu:v:9:y:2018:i:1:p:85-94
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    References listed on IDEAS

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    JEL classification:

    • A12 - General Economics and Teaching - - General Economics - - - Relation of Economics to Other Disciplines
    • L22 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Firm Organization and Market Structure
    • L25 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Firm Performance
    • M10 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - General
    • O34 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Intellectual Property and Intellectual Capital

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