Like everything in life, knowing Why you are doing something usually makes the task easier, or in certain setting even meaningful.
We meet Business Owners with varying opinions on Succession – those that want to bring key employees in early, to those that want (or need) a certain dollar value and can’t imagine transacting before then. There isn’t a right or wrong answer. However, in Succession it’s not solely you. It’s often a business partner, or an incoming equity owner you need to consider – and the timing doesn’t usually align perfectly. It’s also reasonable to acknowledge that sometimes its an employee driving this – they want equity, or they’ll leave.
What we’ve found, is when we work on a succession plan that’s created for the ‘right’ reasons – that is, the betterment of the business overall, it usually works best for everyone. This might be introducing equity to a key person earlier than you thought, but with metrics to still obtain a higher value. It could also mean looking at your business, understanding its value now and working on strategies to improve your business valuation. When the WHY is clear, the pathway becomes apparent.
If you'd like to talk to us and develop your succession pathway, contact us with the link below.
Comments