Issue link: http://read.dmtmag.com/i/81015
MANAGEMENT whether, instead, the tax implica- tions and family circumstances dic- tate that the business be sold – the first step many companies take is to have the business appraised. Identify the successor. If it is to be a family member, this should be done at an early stage to allow for many years of training and to assure the successor's commit- ment before he or she is too well- launched on a separate career. Train the successor. The future leader should have a passion for the business; that's a given. But the challenges of guiding the busi- ness in the years ahead will be dif- ferent from what they are today. The successor must breathe new life into the business. A thorough apprenticeship should involve not only the experience of rotating through management positions in different units of the company, but also tours of duty in management roles with other companies, where the successor can be exposed to alternative perspectives and new thinking. It's not unusual for the desig- nated heir to spend two to five years working for other businesses as part of his or her training – for instance, at wineries in Europe and Australia, or at a wine distribu- tor. We at PwC's Private Company Services often recommend that the If a successor is to be a family member, that person should be identified as a future leader early on. Photo: Jupiterimages/Thinkstock successor spend at least 10 years in training before taking over. Assess the successor's per- formance. Sometimes things just don't work out. The best indication that the heir apparent is succeeding can be the degree to which he or she is accepted as the future leader by members of the family, company managers, employees, customers and suppliers. If things aren't going well, the most trusted stakeholders will tell you so. Sometimes adjust- ments can be made. Sometimes they can't, and a new leader – per- haps a professional manager from outside the family – will have to be hired and trained. Rationalize compensation and ownership policies. Family mem- bers often work in a variety of positions in the winemaking and winegrowing businesses. Even though some members make great- er contributions than others, they are often compensated identically – because they are family members, after all, and the pay policy began when the business was smaller and struggling. The best practice is to Large or Small...to us you are just right! Local Bank. Local Lenders. www.exchangebank.com 707.524.3000 products available for a business your size We have a wide variety of loan WWW.VWM-ONLINE.COM SEPT - OCT 2012 VINEYARD & WINERY MANAGEMENT 71