FAQs
I'm not planning on retiring for 3-5 years, does transition planning make sense for me now?
One of the most important parts of achieving a successful transition is creating a detailed, written strategic transition plan that addresses your personal, financial and business legacy goals. By initiating this process well in advance of your anticipated exit, you ensure your strategic plan is adequately vetted and implemented so you can transition out of your company on your terms.
I have successfully built my business and overcome many challenges, why would I need an advisor?
Developing and implementing a business transition plan requires multidisciplinary professional expertise. You, the owner, do not have the time or diverse range of expertise to create this plan by yourself. However, you are critical to the strategic creation of the plan because it, ultimately, provides a customized roadmap to achieve your needs, desires and goals.
How long does it typically take to sell a company?
The process of preparing and implementing a business transition plan and subsequently transferring a company to new ownership typically takes between one and three years.
I heard a recession is on the horizon, is now a good time to sell my company?
Efforts to time the sale of a company to peak economic cycles rarely result in the desired outcome. Further, the many personal, financial and business issues that need to be contemplated can protract the transition planning and business exit process. As such, we emphasize the process and not the timing of a transaction.
How do I determine what my company is worth?
Company worth (or business valuation) is a range concept and is difficult to evaluate without detailed operational / financial data and market / risk analysis. Further, there are standards of value which apply to certain internal / external business transfers and include fair market value, investment value and synergy value.
Can I increase the value of my company?
Absolutely, in fact, most private companies undertake initiatives to improve value. The more intrinsic / transferable value your company has, the more money you get for it when it is transitioned to new ownership. Further, improving your company's operations now will increase its potential for success in the future, both under your leadership and the new owner(s).