According to the American Institute of Certified Public Accountants, failure to plan for ownership succession is the greatest threat to businesses with sales less than $3 million and the second greatest threat to closely-held, larger businesses. Yet while 80 percent of small businesses are family owned, only 21 percent have a written plan for succession. Should something happen to the owner, these companies may face serious financial and management crises.

In an effort to avoid the instability these unexpected crises often cause and to help business owners explore all of the options available to them, Kent State University’s Ohio Employee Ownership Center has been tasked by the Ohio Department of Job and Family Services to expand its succession planning training throughout the state.

“Too many otherwise healthy small businesses don’t make it to the second or third generation due to incomplete or nonexistent succession planning,” says Chris Cooper, program co-coordinator. “In fact, proper succession planning is the single most cost-effective method to maintaining and growing businesses and jobs in our communities.”

This spring, the OEOC is teaming up with the Greater Cleveland Partnership’s Council on Smaller Enterprises, the Jackson-Belden Chamber of Commerce and the Jefferson County Chamber of Commerce to present seminars on business succession planning for small businesses in the Cleveland, Canton and Steubenville areas. Each seminar will be taught by recognized succession and estate planning professionals, and offer topic-specific sessions to help business owners learn about and begin planning for succession in a low-pressure environment.

Dates are April 23 and May 7 for the Canton session, April 24 and May 8 for Cleveland, and May 14 and May 28 for Steubenville. See below for full schedule details.

In addition to the above programs, the OEOC is piloting two other programs of interest. The first is a series of succession planning webinars for business owners. Each webinar is a short, easily understood snapshot of succession planning issues, is interactive and can be viewed live in the comfort of the viewer’s own home or office. All webinars will be archived for future viewing at www.kent.edu/oeoc/spp. Dates are May 20 and 22, and June 3 and 5. The second program is a two-day training course for economic development professionals that will train them to guide companies as they plan transition to the next generation. The goal is to help protect jobs and businesses in their regions of the state. Dates for the program are April 17 and 18. This course is part of the 22nd Annual Ohio Employee Ownership Conference, held in Akron, which last year attracted over 400 registrants from around the state and the country.

“These programs are meant to provide a multi-faceted approach to business and job retention in Ohio,” says Jay Simecek, program co-coordinator. “With proper planning and support, Ohio businesses can plan for succession before crisis hits. Such advance planning ensures that the family is cared for, that the business and the community it supports remains viable, and that the heirs get a fair value out of the business.”

Cleveland Succession Planning Program Schedule
Location: Corporate College East, 4400 Richmond Rd.,  Warrensville Hts., OH
Time: 8 – 11 a.m.

Session One, Thursday, April 24
An Introduction to Succession Planning, Common Succession/Estate Planning Techniques and Legal Documents, and Sale to an Outside Buyer
Presenters: Richard Tanner, Ownership Advisors Inc., and James Aussem, Weston Hurd LLP

Session Two, Thursday, May 8
How Much is My Company Worth or The Basics of Business Valuation, Sale or Transfer to an Internal Buyer (Family Transfers, Management Buyouts and Employee Stock Ownership Plans)
Presenters: Donald Zwilling, Barnes Wendling Valuation Services Inc., and Carl Grassi, McDonald Hopkins LPA

Cost is $40 for each session ($30 for COSE members) or $70 for both sessions ($50 for COSE members).

Canton Succession Planning Program Schedule
Location: Jackson Township Hall, 5735 Wales Ave. N.W.,  Jackson Township, OH
Time: 8 – 11 a.m.

Session One, Wednesday,  April 23
An Introduction to Succession Planning, Common Succession/Estate Planning Techniques and Legal Documents, and Sale to an Outside Buyer
Presenters: Todd Hawke, GDK & Company, and John Tucker, Krugliak, Wilkins, Griffiths & Dougherty Co., L.P.A

Session Two, Wednesday, May 7
How Much Is My Company Worth or The Basics of Business Valuation, and Sale or Transfer to an Internal Buyer (Family Transfers, Management Buyouts and Employee Stock Ownership Plans)
Presenters: Rich Craig, 415 Group, and Steven A. Armatas, Jeffrey A. Halm, and Dustin J. Vrabel, Buckingham, Doolittle & Burroughs, LLP

Cost is $40 for each session ($30 for COSE members) or $70 for both sessions ($50 for COSE members).

Steubenville Succession Planning Program Schedule
Location:Jefferson County Chamber Building, 630 Market St., Steubenville OH
Time: 8 – 11 a.m.

Session One, Wednesday, May 14
An Introduction to Succession Planning, Common Succession/Estate Planning Techniques and Legal Documents, and Sale to an Outside Buyer
Presenters: TBA

Session Two, Wednesday, May 28
How Much Is My Company Worth or The Basics of Business Valuation, and Sale or Transfer to an Internal Buyer (Family Transfers, Management Buyouts and Employee Stock Ownership Plans)
Presenters: TBA

Cost is $40 for each session ($30 for COSE members) or $70 for both sessions ($50 for COSE members).

Succession Planning Training for Economic Development Professionals Schedule
Location: Akron Fairlawn Hilton,3180 W. Market Street, Akron, OH 44333

Thursday, April 17, 9 a.m. – 5 p.m.
The Basics of Succession Planning

Friday, April 18, 8 a.m. – 4:45 p.m.
Employee Ownership as a Succession Planning and Economic Development Strategy

For more information, visit  www.kent.edu/oeoc/spp.