Business Transition Planning | Ownership Transition

EVALUATING TRANSITION OPTIONS

Once we have helped you to align your goals, provided you with a realistic understanding of what your business is worth, and have implemented value enhancement ideas, the next step is transition. There are two general categories for transition: inside or third party.

It is best to explore all options, as there are misconceptions about both transitions, and most businesses aren’t aware of all the options available or their potential impact. Your Sikich advisor will help you assess each option to ascertain which is most suitable and rewarding for you.

Inside

Intergenerational Transfer
Management Buyout
Sale to Existing Partners
Sale to Employees
Professional Manager
ESOP

Third party

Sale to Third Party
Recapitalization
IPO
Orderly Liquidation
Private Equity Firm

FINDING BALANCE WITH SUCCESSION PLAN OPTIONS

Possibly the most interesting, rewarding—and personally challenging—part of transitioning out of your business is deciding on the best structural approach. This not only requires a careful look at your financials, your life, and business situation, but also a deep discovery of your personal goals, core values, and legacy ideals. It’s a decision that is particular to every business owner.

Dependent upon the type of buyer you are seeking, you may need to adjust how you prepare your company in order to suit and entice them. A Sikich advisor can pinpoint ways to increase your company’s salability, maximize its value, and assess growth areas.

Knowing your goals and taking a strategic look at the valuation of your company are your crucial first steps in a good transition.

Who Will Take Over my Business?

There are many influences determining what will best suit your business, and Sikich advisors will help you to consider all the variables in “Who will take over my business?”

Business valuation and choice of transition are interwoven, because valuation helps determine how much you need. For example, if the business is to go to family or to trusted management, owners are often willing to sell at a lower price. The question then becomes, “Can you accomplish your goals at that price?”

Sikich will help you to align the outcome with your goals and to find your markets, making sure that you understand different types of buyers, and the pros and cons of each type.