Business, Legal & Accounting Glossary
The second in command (2IC) is the next in line to lead the business in the event that the present owner or CEO is unable to do so. Filling the 2IC position is critical to an exit strategy because it adds redundancy to the existing leadership team and establishes a contingency plan in the event the owner is no longer available.
The 2IC is the most critical role in terms of bolstering the management team. It enables the business owner walk away from the firm with the certainty that it will continue to operate normally in their absence.
From the buyer’s standpoint, having a 2IC in place ensures that the company’s success is not entirely dependent on the owner. Filling the 2IC role adds value to a business and significantly raises the likelihood that the business will eventually sell at a valuation premium. When it comes to assembling the ideal management team, the company obtains the maximum return on investment by hiring for the 2IC post above any other “CxO.”
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This glossary post was last updated: 24th January, 2022 | 0 Views.