After watching The Santa Clause as a child, I was absolutely terrified that my father would accidentally frighten Santa off our roof and become the new Santa by default. I realize this is probably an extremely niche fear, but it was ever present around Christmas, so much so that I told my dad he was not allowed to leave the house if he heard a suspicious noise outside on Christmas Eve.
The impact The Santa Clause had on my childhood was strong, to say the least. As an adult, with less fear of her father becoming Jolly Ol’ Saint Nick, I see the Santa Clause Trilogy as a treasure trove of exit planning lessons, family business strategies, and tips for selecting a successor.
The Santa Clause - Who Takes Over If You Die?
For those unfamiliar with the Tim Allen classic from 1994, let me provide you with an overview of The Santa Clause. Allen’s character, Scott Calvin, is a divorced father whose son, Charlie, begrudgingly spends Christmas Eve at his house. After messing up the Christmas dinner, eating diner food, and reading ‘Twas the Night Before Christmas,” Scott finally gets Charlie to bed.
They hear a noise on the roof and head outside to see a man, Santa Claus, on the roof. Scott yells at the man, who then falls off the roof, and disappears. The father and son find a business card with the words “If anything should happen to me, put on the suit, the reindeer will know what to do.” Thus leaving Scott with the job of delivering toys in a reindeer-drawn sleigh to children around the world.
This simple business card, or Santa “Clause,” was a binding contract that made Scott Calvin the new Santa Claus. In real life, this business card contract would in no way be legally binding. For one thing, one of the parties involved did not even know of its existence. However, with Santa Claus having a very dangerous job, complete with extremely icy rooftops, his preparation for who would take over in the event of his death or injury is pretty impressive.
What would happen in your business if you or one of your business partners were to pass away unexpectedly? Is your business set up for success if you were to lose a key member of the team? The death of an owner can have a significant impact on the value of a business. After an owner’s death, there is a loss of important skills and expertise that are critical to the organization’s operations and success. This can ultimately lead to a decline in revenue, profitability, and overall value.
It's important for businesses to have contingency plans in place, such as succession planning and key-man insurance, to minimize the impact of the death of an owner, key employee, or business partner on the business's value. Additionally, having a clear communication plan and a business continuity plan in place can help to mitigate the uncertainty and disruption caused by the loss of a key person.
The Santa Clause 2 - Did You Read The Fine Print?
The second installment of The Santa Clause franchise finds Scott Calvin / Santa Claus undergoing the “De-Santafication Process,” a totally real condition that befalls Santa if he fails to find a Mrs. Claus. The same business card that transformed Scott Calvin into Santa Claus is some extremely fine print stipulating that if the new Santa does not find a wife he will no longer be Santa. This is referred to by the elves as the “Mrs. Clause.” He will quite literally lose his career because of his marital status and his failure to read everything in his contract.
Scott has a few obstacles in his path toward finding a wife. First, he only has 30 days to find a woman who will agree to marry him. Second, that woman has to believe he is Santa and accept moving to the North Pole to become Mrs. Claus.
While your contracts likely do not stipulate your immediate expulsion from your business if you are unmarried, it is crucial to review all business documents regularly to ensure your assets are protected should you get a divorce.
A divorce could lead to the dissolution of your business. Forbes says, “If your spouse is entitled to a big cash payout for his or her share of the value of your business and you don’t have the liquidity, you may be forced to sell or close the business in order to pay your spouse. Another scenario could include a culmination of negative events: disruptions to your operations and team resulting in poor communication with customers and business partners, bad press that damages your brand reputation and discourages people from doing business with you.” It is important to have an exit plan in case of a divorce.
The Santa Clause 3: The Escape Clause - Is The New Owner Good For Business?
The final movie in The Santa Clause trilogy, The Santa Clause: The Escape Clause shows Scott Calvin’s Santa Claus wondering what would have happened if he was never Santa Claus in the first place. Jack Frost, played by Martin Short in what appears to be a Barry Manilow costume, tricks Scott Calvin into resigning from the Santa Claus role. Jack Frost then takes over the Santa Claus mantle, but he decides he does not want to deliver toys around the world. Instead, he turns the North Pole into an amusement park where only the extremely wealthy can afford to visit Santa and get a gift.
Scott buys a ticket to the North Pole and witnesses what has become of his toy factory, sees the elves looking sad and downtrodden, and discovers what this new Santa has done to the legacy and fantasy of Santa Claus.
Selecting a successor or a third-party buyer can be a key area of stress and anxiety for an exiting business owner. Some business owners are adamant that their successor carries on the legacy of the business, protects the company culture, and continues to treat the employees and team well. By having set criteria in place that the potential owners must meet, the exiting owner can limit the negative impact on the business’s legacy moving forward.
Similar to the plot of The Santa Clause: The Escape Clause, there have been instances of owners who sell their business only to witness the new owners harm the legacy they have worked so hard to build and return to the business to right these wrongs.
Before you begin your rewatch of The Santa Clause trilogy, learn more about exit planning lessons in our Free Exit Planning Content Library!
