Succession planning is one of those tasks
that is often on “tomorrow’s to-do list,” until all of a sudden that day is today. Whether retirement snuck up on you or the unexpected has accelerated your timeline, having a succession plan in place is instrumental in ensuring your rep firm continues on. A strong succession plan isn’t just about selling your business, but about protecting your legacy.
Many otherwise sound rep contracts are subject to termination for any reason or for no reason. Even if the parties agree to an initial contract term of three or more years to give the relationship time to develop and to enable the rep to create demand for the manufacturer’s products, most reps understand that if their three-year agreement allows termination on 30 days’ notice, they don’t really have a three-year contract. Instead, they’re working on a 30-day contract.
Many otherwise sound rep contracts are subject to termination for any reason or for no reason. Even if the parties agree to an initial contract term of three or more years to give the relationship time to develop and to enable the rep to create demand for the manufacturer’s products, most reps understand that if their three-year agreement allows termination on 30 days’ notice, they don’t really have a three-year contract. Instead, they’re working on a 30-day contract.