Second In Command (2IC)
Definition - What does Second In Command (2IC) mean?
The second in command (2IC) is the next person in line to lead the business in the absence of the current business owner or CEO. Filling the 2IC role is a key component in an exit strategy because it creates redundancy in the existing leadership team and provides for a contingency plan in the event the owner is no longer around.
Divestopedia explains Second In Command (2IC)
The 2IC is the most important position needed to strengthen the management team. It allows the business owner to remove him/herself from the company with the confidence that the company will carry on running the same in their absence.
From the perspective of a buyer, having a 2IC in place provides the confidence that the company's success is not completely dependent on the owner. Filling the position of 2IC creates value in a company, and it greatly increases the chances that the company will eventually sell at a valuation premium. In building the perfect management team, the company earns the highest return by hiring for the role of 2IC over any other "CxO."