Earlier this week, Preferred Apartment Communities, Inc. (PAC), a notable issuer in the alternative securities industry, unexpectedly lost its founder, chief executive officer, and chairman John Williams. Mr. Williams was known to many in the business, although his influence extended far outside the industry. In FactRight’s interactions with him, we found Mr. Williams to be engaging and courteous, consistent with his high reputation.
FactRight’s first due diligence review of PAC was in 2012. During that and subsequent reviews, we determined that PAC’s governance and executive structures are conducive to smooth business succession. Sadly, succession will take place far sooner than anticipated. (For additional information on new leadership appointments at PAC in the wake of Mr. Williams’ passing, see DI Wire’s article.)
Although PAC’s succession path is well-articulated, we can’t say the same for every sponsor or issuer plan that we look at, especially those for closely-held organizations. Last year, my colleague Russ Putnam and I looked at the succession battle engulfing the L.A. Lakers organization. Read more at this link.