Succession Planning / Denver, CO
Succession Planning: One thing is for certain, that is, that YOU cannot run your business forever!
As Business Brokers and Mergers and Acquisitions professionals, our purpose is to educate you and make you aware of all of the issues and action steps that will provide for a smooth and orderly transfer of your business when you are ready to step aside and let someone else take over.
Congratulations! It took years and years, but you’ve built up your Denver business. You may have spent the last 20-30 years investing all your money, time and energy into your business. In fact, even when your business produced strong cash flow, you re-invested it.
Why? Someday you can sell your business and get the biggest check of your life; from the sales price. Building that Denver business was like pushing a large boulder up a mountain. Over the years as the business grew, it became even harder, more stressful and required more commitment.
Very few businesses, in Denver or anywhere, survive the first 3-5 years, far less, 20 years plus. Anyway, you did, and today, or at some point in the future you stand to cash in big time if you play your cards right.
A Denver business is invariably the largest asset you will ever own. It is the money that you will need to live on in your retirement or to begin the next endeavor.
In fact, many business owners have a sense that their son or another family member will take over the business once they no longer want to run. However, very few owners have had any form of a serious discussion with that family member about the prospects of transfer. Most of the time the family member in mind is not as interested in taking over as the owner had thought. Moreover, many studies show that the chance of long term success of the business after the transfer has been greatly reduced. This is because they didn’t plan.
Business Planning or Planning to Sell is like exercise, everyone knows they should sell it, but very few business owners really take the time to properly plan and maximize the sell value. It has been long-known that less than 15% of all business owners have ANY form of plan on what to do with their business when the day comes that they no longer want to run it. And one thing is for certain, and that is, that you cannot run your business forever!
Please call our Business Brokers and Mergers and Acquisitions professionals to help you learn more about how best to prepare your business for sale to maximize its value.
The pharaohs built great pyramids in Egypt to ensure a long-lasting legacy that everyone can remember them by. Today business owners in many respects have same goal in mind. They have spent years building up a business in the hope that someday a long time from now the business will endure and bet transferred to others and the name would stay on, etc.
In fact many business owners have a sense that their son or another family member will take over the business once they no longer want to run. However, very few owners have had any form of a serious discussion with that family member about the prospects of transfer.
Most of the time, the family member in mind is not as interested in taking over as the owner had thought. Moreover, many studies show that the chance of long term success of a Denver business, after the transfer, has been greatly reduced. In fact, only 20% of businesses that transfer to another family member (typically a son), survive the transfer and stay in business.
Another statistic, only 9% of businesses survive to a 3rd generation. These statistics are alarming but true. As they say, the first generation starts it, the second grows it, and the 3rd blows it!
Pre-Sale Planning (Exit Planning)
Pre-Sell Planning for the Business and Business Succession Planning is critical to maximizing the value and ultimate selling price of your business. We hold complimentary dinner and lunch seminars on the topics below throughout the year. If you are interested, please call our office for dates and locations.
- How to prepare your business to sell in advance, to increase your value by up to 70%.
- What are the Action Steps to Take Today to improve the business value to sell later?
- How to avoid the Top 10 Mistakes Business Owners Make Before they sell Their Business.
- How much is the true market value of your company?
- How should you structure the ownership transition so as to minimize the tax consequence? Whether you have a C Corp, S Corp, LLC, Sole ownership, etc, each has significant costly tax consequence if you structure the deal wrong for the Seller’s side.
- How to sell your business without breaching confidentiality with customers and employees, etc.
- Structuring the transaction to maximize your sales price and minimize taxes.
- How to exploit the hidden potential value of your company.
- How to create a competitive auction to sell your business and why it’s sometimes best Not to have an “asking price”.
- Why 80% of all business sell for far less than they are worth. Don’t let yours be one of them.
- Who are the best buyers for your business and how to find them?
- How to look at your business through the eyes of the buyer.
- What is EBITDA, and what multiples of your cash flow with buyers apply to your business or industry?