Business Transition Services

Owning a business means the freedom to make your own decisions, building an organization, prospering against tough competition and focusing on what’s important to you. For business owners, we hope all of those things have come true.

It’s nice to look back, but to accomplish things you must look forward. As a business owner, you may be thinking about the inevitable transition that will take place when you leave your business. You probably are thinking about being paid for all your hard work. However, a national survey our firm conducted found three-quarters of all owners had not given a thought to any sort of transition plan! As an owner or substantial stockholder you have a lot at stake—financially, personally and professionally. Because of this incredibly important situation you are facing, we developed a “Transition Team” program to help you make this next step as profitable as possible.

We use the word transition to distinguish from the transaction or “deal” part of the transition. Much of what you hear or read about selling a business focuses on the transaction part—to the exclusion of the entire process. The transaction must occur, but if you don’t execute well on the other parts, your future financial security could be in jeopardy

The four phases you need to deal with in every business transition are shown in the following diagram. Ultimately, the degree of financial independence you have will be determined by the actions you take in all phases.

Pre-Sale Phase

Pre–transition planning/business analysis. Develop transition road map and action plans for staff and owner(s).

Positioning For Sale

Execute plan, and monitor achievement of business and personal goals for maximum value and salability.

Transaction Phase

Execute firm marketing, negotiations, transaction and post-sale transition.

Wealth Management

Execute wealth management plan: estate plan, asset protection and ongoing investment management.

Superior business operations and follow-on wealth management are “team sports.” To form a good team you do not have to be a financial genius or legal expert. However, you must choose people who have experience in business and personal transitions. You need to have the right people advising and assisting with each phase—and the skill sets differ at each stage of the transition. Choosing the wrong team members can be disastrous.

You may be wondering: “Do I need this “horsepower?” Yes, more than likely you do. In many cases, buyer’s agents are sophisticated professionals who expect to deal with similarly qualified professionals. The better your team, the better are your chances for a successful outcome meeting or exceeding your objectives. For example, lenders and buyers are paying close attention to the stability and management skills of your team and you. Any error or even a perceived weakness in any part of the negotiations can kill a deal or cause an offer to fall far short of what you want. A winning team means a much better chance of a winning transition.

To learn more about our Transition Team program, please speak with Glenn Kautt, president of the firm.