Reap Your Rewards
Profound change can only come from outside
the organization … and only by invitation.
W. Edwards Deming
Face the Challenges of Transitioning Your Business to Family Members or Employees and Realize the Value You Deserve
Transitioning to Family Members
Passing the business on to a family member can create challenges both in the business and the family.
- Is the family member ready to lead?
- Will employees respect their new role?
- Will customers respect their new role?
- Will other family member create problems?
- Are you ready to surrender control and allow them to succeed (and perhaps fail)?
Most importantly, will you realize fair value for your business, given the emotional relationship with your family member?
As your trusted Advisor, we ensure you, your family members and your business are positioned for a successful business transition.
Transitioning to Employees
Transitioning a business to a key employee or even all employees (ESOP) ensures that the new principals are familiar with the business, minimizing transition problems and providing time for the owner to transfer control.
The key issues relate to ownership and financing.
- Will you retain some ownership in the company?
- How will the new owners finance their purchase of the business?
- How will you negotiate fairly while you are still in charge of the business?
- How will you handle relinquishing control to the new management of the business?
- Will family members who have either been involved or not been involved in your business disrupt the new owners?
Most importantly, will you realize fair value for your business, given your emotional relationship with your employees?
As your trusted Advisor, we ensure you, your employees and your business are positioned for a successful business transition.
Ethos, Pathos, Logos
Transitioning your business is hard.
You will have ethical considerations. Why? You know more than anyone on the planet about your business. That means you know every good thing about your business. That means you know every bad thing about your business as well. Some of those will cause you pause to evaluate how to disclose to your prospective buyer.
You will have emotional considerations. Why? You have most likely given many, many years of your life to your business. You are now considering walking away from that life and beginning a new life. It doesn’t matter if you are transitioning your business to family members or employees, you will face many emotional decisions.
You will have logical considerations. Why? Most of those considerations will be around price and terms. You will have proven to yourself that your price and terms are right. Your family or employee buyers will have proven to themselves that their price and terms are right. Both of you will have impeccable logic. But the negotiations around your logic could get a little emotional.
As your trusted Advisor, we’ll help you face the ethos, pathos and logos of your successful business transition.
Insights When It Is Time to Move On
Transition Your Arizona Business
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