Based on more than 25-years of research, a lack of mental and financial readiness is the top “deal-killer” for owners contemplating a transfer or sale of equity.
This is why we offer the complimentary BERI™ Assessment. The BERI is a tool for helping you, as a business owner, determine your unique mental and financial readiness.
This proprietary tool compares your “readiness” with a “match” -- exit options that may be most applicable to your situation. Click below to take this 10 minute assessment, and receive your custom report.
You will receive follow-up communication from us to explore this report in more detail, and further interpret the results.
Multiple owners of a single company can have wildly different liquidity needs. And planning for multiple owners goes well beyond an executed operating agreement or buy-sell arrangement.
Age disparity, health concerns, family dynamics, and a myriad of other factors can quickly derail implementing a coherent, viable exit plan.
Absent a plan, the business and livelihood of everyone connected to it may be placed in jeopardy. Our process contemplates this, while keeping an available pivot to internal or external capital market transactions.
A sale to an outside buyer is one potential exit strategy. Entry to capital market access points is appropriate for business with the right scale and structure. However, outside buyers will likely have higher rate-of-return expectations, and cultural differences may not be palatable to an owner.
An introduction to the “right fit” is critical, and should be coordinated with the owner’s motives in mind.
A full appreciation of these expectations will help an owner properly position the business, especially if the necessary planning has been accomplished before engaging in negotiations or a competitive auction.
Owners of private companies generally have family members and non-related executives or managers involved in the business who want equity ownership.
This dynamic often leads owners to the incorrect conclusion that the only method at their disposal is an outright sale of the business, which can be burdensome for the next generation.
There are 18 ways to transfer a closely held business, and each method involves an analysis of an owner’s equity, income and control level.
Quantifying which aspect an owner is best suited to “sell or give away” is a key component in helping to resolve this common issue.
Quantifying an owner’s ability to reach and maintain financial independence is a foundational element in exit and succession planning.
Absent this step, evaluation of a potential deal is exponentially more difficult.
Proper alignment with an owner’s legacy plan and personal balance sheet should be done before any movement toward exit or succession planning is made.
We ensure that your vision, values, goals, and assets are quantified and properly coordinated with your exit or succession plan.
An owner’s life goals may reach beyond their family, company, key managers, and employees. ouching one’s community often becomes a lifetime objective for certain owners, and the best time to plan for these objectives is before an exit or succession plan is implemented.
Planning ahead can provide an owner’s local community with much needed resources, as well as significant tax savings to the departing shareholder.
Charity can also be an invaluable tool in perpetuating an owner’s values on a local, regional, national or internationally level.
Because there are many types of valuation methods, valuation, or appraisal, is one of the trickiest aspects of exit and succession planning. The key to valuation is for the owner to first narrow their exit and succession possibilities down to a few options.
This allows the proper appraisal method to be selected that will best support the owners various financial and non-financial goals. Valuation, combined with marketability, growth, and value-driver metrics are woven into the analysis we review with you.
We are certain an owner should understand the value of what they will receive when they contemplate engaging us.
Prior to engagement, we clearly articulate our planning and implementation process, our compensation model, and our follow-through methodology, and our scope of services.
Owners hire us to bring creative design ideas to the table, coordinate with their other advisors, and to act as a catalyst to get things done.
These engagements are typically multi-year, as annual updates and refinements are generally necessary.