Landing your life's work
Even with a detailed plan, the launch of a business often looks like a leap into the blue, with founders having faith they can build the plan as they go. In that way, audacity and success are related.
The other end of a business owner’s journey suggests the need for a different approach. With the accrued value of a successful business, you have the ability to set and pursue complex goals – but only if you can unlock that value.
This process for transforming unrealized value into realized wealth is called business succession, and it is different for every business and business owner. For example, a succession plan may include:
- The outright sale of the business
- A partial sale of the business as shares
- A merger with a larger entity
- A family succession
- An employee succession
Likewise, after the execution of a succession plan, owners may have goals including:
- Retirement
- Philanthropy
- Generational wealth stewardship
- Income generation
- Continued day-to-day involvement in the business
- Emeritus-style guidance for new management
Business succession is about pursuing those multidimensional goals from both a business and personal perspective – planning, execution and follow-through.
The power of planning
Value creation
We help business owners enhance the value of their business ahead of succession. With resources including relationships with investment bankers, we work with our clients to assess the market and design a value enhancement plan that can put them in a strong position when it comes time to execute their plan.
Tax efficiency
Succession possibilities are vast, the milestones are flexible. Taxes, however, always play a role. The sale or partial sale of a business creates what is called a “wealth event,” a windfall of earnings that can create particularly high tax liabilities. A significant part of succession planning is about managing and mitigating that large tax bill through estate planning, by meeting your life philanthropic goals or by structuring successions to spread liabilities over time.
Family management
Every family has complex dynamics. Family business succession can bring those dynamics to the fore in challenging ways. While working to support your goals, we can facilitate family governance conversations, design plans and help bring other family stakeholders up to speed.
Investment banking
As the saying goes, the value of anything is what someone is willing to pay for it. When selling or equitizing your business, taking measures to properly market and create competitive pressures can make all the difference at deal execution. We work with investment bankers and other professionals with insight into private markets to help our clients understand their options and pursue a strong deal.