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Transition of Business Ownership

TRANSITION OF BUSINESS OWNERSHIP

Once goals are quantified, we explore the various transition options, evaluating the pros and cons of each, and how well they match up with both your financial and non-financial goals.

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.

Our assessment process includes a personalized review of your situation and provides recommendations for a comprehensive action plan for business succession and personal wealth.
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Before you begin, we will listen to what your goals are, assess what your business is worth, and discuss the advanced planning and timing needed to grow and capture maximum enterprise value.

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Insuring that the outcome is aligned with your goals, our certified specialists can assist with advanced financial planning, investment and risk management, and asset protection.

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Our advisors will work with you throughout the process to create and implement a plan for maximizing value, minimizing taxes, and increasing your company’s salability.

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Exploration, analysis, and implementation of the pros and cons of various transition options, and how well these match up with both your financial and non-financial goals.

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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 Pros and cons of each type

HOW PREPARED ARE YOU TO SELL YOUR BUSINESS?

If and when it’s needed

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