This is how our Business Succession Process works:
STEP 1: Establish your succesion goals
In keeping with our holistic approach, we meet with you at your place of business so we can see the Big Picture.
Our advisors strive to learn what your business means to you and your people. That helps us develop a deep understanding of what you ultimately hope to accomplish. Of course, we gather financial data too. We want to design your business succession strategies to work hand-in-hand with your financial life or wealth planning, and investment management.
Here are some examples of business succession goals:
- I want to have a succession plan that is designed to help my employees keep their jobs for the long term.
- When I exit this business, I want to launch another business.
- I want the proceeds from this business to provide for my family’s lifestyle for the rest of their lives.
STEP 2: Measure your Financial readiness and personal Mental readiness to exit your business.
- Together, we develop an understanding of your readiness to exit your business, from financial and personal standpoints.
- We do contingency planning, putting strategies in place to protect you if unforeseen circumstances force your exit unexpectedly.
- Having a business exit plan in place at least five years before you think you will be ready is ideal and may provide the most flexibility, peace of mind, and beneficial financial possibilities. If you plan to retire in less than five years, remember that it’s never too late to start a business exit plan.
STEP 4: Choose your optimal exit option, based on your financial and personal circumstances. Here are some basic exit options:
- Management buy-in/buy-out
- Gift or sell the business at a discount
- Third party sale
- Employee Stock Ownership Plan (ESOP)
- Private equity group recapitalization or sale
- Shutter the business and liquidate your assets
- Competitor sale or merger
STEP 5: Produce a written business exit plan, to help you understand the value of the option you choose.
- Your written business exit plan clearly maps out your goals and the strategies designed to help you achieve them.
- Our advisors provide in-depth analysis to help you fully understand the reasoning behind each recommendation and the benefits that you can expect.
STEP 6: Execute your business exit plan to
- Work towards your exit goals and
- Help you protect the illiquid assets that you have in your business.
Business Exit Case Studies
Determining how to prioritize cash is perplexing considering all we are balancing: college funding, maintaining a comfortable lifestyle, preparing for retirement, making debt payments for our business and real estate loans and keeping cash available for projects to help our business continue to grow.