Succession for your NEMT business | NEMT Experts Podcast Episode 68
You won't own your Non-Emergency Medical Transportation (NEMT) business forever, so how do you plan for that? This third episode of The Transportation Alliance's 6-part webinar series sponsored by Bambi called "Mastering Business Essentials" features Michael DeSiato, explaining how to plan for a successful succession for your business.
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Top 3 Takeaways:
- Succession planning is an unavoidable and critical process for every business owner. The interview strongly emphasizes that business ownership is not indefinite, and failing to plan for transition leads to a significantly high rate of failure, especially for family-owned businesses. It's portrayed as a vital strategic exercise, not an optional afterthought.
- Effective succession planning requires a comprehensive and multi-faceted approach involving a team of professionals. The "Succession Matrix" highlights ten interdependent factors (from owner motivation and personal finances to business performance, leadership development, and family governance). Michael DeSiato stresses that this is a "team sport" requiring collaboration among advisors like CPAs, lawyers, and wealth managers to avoid costly oversights.
- Proactive and early planning is key to maximizing success and mitigating risks. The interview repeatedly advises starting the succession planning process several years in advance. This ample time allows for proper development of successors, strategic business adjustments, optimization of tax liabilities, and ultimately, preserves and potentially increases the business's value, ensuring a smooth transition and the owner's financial and emotional readiness.
Top 3 quotes from Michael DeSiato:
- "Most owners only have one shot at getting this thing right, this succession issue... And my goal and my passion is to make sure that your one shot is your best shot."
- "Succession planning is a team sport. It requires the active collaboration and participation from all of your trusted advisors."
- "Early planning here is the key. Ideally, this planning should begin several years, several years before you intend to retire or exit the business... Time is your friend, okay? Time is your friend here."
