A little sad to hear an old friend (not a close friend, obviously) saying he had had a heart attack at Christmas as the responsibility of the 800 people employed in his business had finally taken its toll.
By why had he not sold out three years ago in the bull market? Quite clearly none of the younger generation had the interest to take over so the future should have been addressed.
It is great to run a large business, good for the ego, but even better if all the 800 families have a stake in the company and will do well from a sale. But then passive equity companies in which two other founders had retired early, keeping their shares, do not offer prosperity for all. How can you expect to attract great talent if they do not share in the spoils?
It makes sense to have an Active Equity Company in which everyone benefits. Let everyone share in the gain and take the strain on the way and make sure you and your family enjoy a long and healthy retirement.
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