MAXIMIZE VALUE
When it comes to preparing a transition from your business, whether internal or external, there’s no such thing as too soon. Identifying a successor, negotiating with partners, and building the processes that will lend value to your business all take time and energy. We take a process-oriented approach to preparing your business for an inevitable transition — all with a view to maximizing value once you’re ready to exit and setting the business up for long-term success.
TRANSITION/SUCCESSION PLANNING
What Are My Options?
Conversations around succession planning can be open ended and emotionally fraught, causing owners to take great pains to avoid them. But doing so will put into jeopardy years of hard work in the business, as well as the full value that could be realized. We’ll consider all of your transition options and build a plan that charts a path forward, step-by-step.
TRANSITION & SUCCESSION PLANNING
What Are My Options?
Conversations around succession planning can be open ended and emotionally fraught, causing owners to take great pains to avoid them. But doing so will put into jeopardy years of hard work in the business, as well as the full value that could be realized. We’ll consider all of your transition options and build a plan that charts a path forward, step-by-step.
WHEN?
WHAT’S THE BEST
TIMING TO MAXIMIZE
YOUR SALE POTENTIAL?
WHOM?
WHAT BUYER, OR
TYPE OF BUYER, WOULD
YOU BE MOST
COMFORTABLE WITH?
HOW MUCH?
WHAT’S A FAIR
MARKET PRICE THAT WILL
MEET YOUR WEALTH
OBJECTIVES?
54% FAMILY MEMBER
24% 3RD PARTY
6% EMPLOYEE
16% NO IDEA
businesses brought
to market sell
Several factors determine which businesses sell and
which don’t: an owner’s expectation of their businesses
value, identifying the right type of buyer, and allowing
enough time to find the buyer who understands your
business’s value and is ready to act. We’ll provide clarity
on all three counts.
54% FAMILY MEMBER
24% 3RD PARTY
6% EMPLOYEE
16% NO IDEA
businesses brought
to market sell
Several factors determine which businesses sell and
which don’t: an owner’s expectation of their businesses
value, identifying the right type of buyer, and allowing
enough time to find the buyer who understands your
business’s value and is ready to act. We’ll provide clarity
on all three counts.
CHARTING THE PATH OUT
For business owners considering an exit in the next one to five years, three elements must be clearly defined. Our Option Planning process will give you clarity and focus, bringing you closer to the exit with confidence in how to get there, as well as what happens to the business once you’ve left.
1
WHO IS YOUR
SUCCESSOR?
2
WHAT IS
THE PRICE?
3
WHEN WILL
YOU TRANSITION?
Internal Transition Support
Keeping your business in the family, or with a trusted employee, can be a deeply rewarding way to transition out. But it also requires difficult conversations and comprehensive planning to ensure that your successor is prepared to take the reins — and that you preserve your relationship throughout the process. We literally wrote the book on the topic, and will prepare you and your team for a seamless internal transition, either in the near future or down the road.
OF SUCCESSORS ARE PREPARED
(ACCORDING TO THE OWNERS)
Internal Transition Support
Keeping your business in the family, or with a trusted employee, can be a deeply rewarding way to transition out. But it also requires difficult conversations and comprehensive planning to ensure that your successor is prepared to take the reins — and that you preserve your relationship throughout the process. We literally wrote the book on the topic, and will prepare you and your team for a seamless internal transition, either in the near future or down the road.
OF SUCCESSORS ARE PREPARED
(ACCORDING TO THE OWNERS)
SUCCESSION PLANNING
You may not be ready to transition out, but that doesn’t mean it’s too early to structure the business to be less dependent on you and ready to pivot when your interests and priorities change. Learn how we approach the emotional and practical concerns of succession planning.
SUCCESSION PLANNING
You may not be ready to transition out, but that doesn’t mean it’s too early to structure the business to be less dependent on you and ready to pivot when your interests and priorities change. Learn how we approach the emotional and practical concerns of succession planning.
FACING THE TOUGH QUESTIONS
- Have you discussed your transition with your employees and family?
- Do you have partners who need to know your exit timeline?
- Is your partner prepared to buy you out?
- Does your successor know that they are the successor?
- Are you sure your identified successor is interested in taking over the business?
- Are they currently capable of running the business?
- Do they have the means to buy you out?
- Have you discussed the terms of your transition with your successor?
STEP-BY-STEP TRANSITION PLANNING
The key to a successful internal transition plan is to have clearly documented terms and a transition timeline shared with all involved. Our advisors will walk you and your successor through a documented transition process, helping you through the following steps:
MEDIATION AND NEGOTIATION
COMPANY VALUATION
COORDINATING WITH LEGAL AND ACCOUNTING SUPPORT
CONNECTING WITH A FINANCING SOURCE
Contingency planning
None of us want to think about all of life’s “what ifs,” but not doing so as a business owner can leave your family, employees, and your business unprepared for the unexpected. Planning for a potential illness, disability, or death manages risk and can keep your vision on track in the worst of circumstances.
“LIFE IS WHAT HAPPENS WHILE YOU’RE
BUSY MAKING OTHER PLANS.”
– ALLEN SAUNDERS
EXPECTING THE UNEXPECTED
As part of our Contingency Planning process, we help you find answers that will shore up your business’s foundation
whether the unexpected strikes or not.
- In the event of death or disability, who will take ownership?
- If you fall ill, who will manage in your absence?
- How should you compensate an interim manager?
- Are there any indispensable employees that require an Employee Agreement?
- Do you have Key Man Insurance?
- If the business stays in your estate, what will be the governance structure?
- If the business stays in the family, do you have agreed upon terms for an ownership transfer?
EXPECTING THE UNEXPECTED
As part of our Contingency Planning process, we help you find answers that will shore up your business’s foundation whether the unexpected strikes or not.
- In the event of death or disability, who will take ownership?
- If you fall ill, who will manage in your absence?
- How should you compensate an interim manager?
- Are there any indispensable employees that require an Employee Agreement?
- Do you have Key Man Insurance?
- If the business stays in your estate, what will be the governance structure?
- If the business stays in the family, do you have agreed upon terms for an ownership transfer?
Sale Preparation
You have an exit date and a price in mind. Our advisors will perform analytical exercises to ensure that your expectations
are on target, and that your business is ready to hit the market when you’re ready. As part of our sales preparation process,
we perform the following tasks.