ownership transition
Evaluating transition options
Once your goals are clear, your valuation is grounded in reality, and value-enhancement strategies are in motion, the next step is planning your transition. Options generally fall into two categories, internal or third-party, and each comes with its own benefits, challenges and tax considerations. Many owners are unaware of how these paths differ or the impact they can have on their long-term goals. Your Sikich advisor will help you evaluate the options and determine the one that best supports your future.
Common Transition Paths:
Common Transition Paths:
- Management buyout
- Sale to family or existing partners
- ESOP
- Sale to a third party
- Private equity or recapitalization
ownership transition
Finding balance with succession plan options
Choosing the right structure for your transition is often the most rewarding—and most personal—step in exiting your business. It requires an honest look at your financials, your life stage, and the legacy you want to leave. Every owner’s path is different. Depending on the buyer you’re targeting, you may need to position your company differently to increase salability and value. Sikich advisors help identify growth areas, strengthen your story, and align preparation with your goals. A clear vision and realistic valuation are the foundation of a successful transition.
ownership transition
Who will take over my business?
There are many influences determining what will best suit your business, and Sikich advisors will help you to consider all the variables in “Who will take over my business?”
Business valuation and choice of transition are interwoven, because valuation helps determine how much you need. For example, if the business is to go to family or to trusted management, owners are often willing to sell at a lower price. The question then becomes, “Can you accomplish your goals at that price?”
Sikich will help you to align the outcome with your goals and to find your markets, making sure that you understand different types of buyers, and the pros and cons of each type.
Business valuation and choice of transition are interwoven, because valuation helps determine how much you need. For example, if the business is to go to family or to trusted management, owners are often willing to sell at a lower price. The question then becomes, “Can you accomplish your goals at that price?”
Sikich will help you to align the outcome with your goals and to find your markets, making sure that you understand different types of buyers, and the pros and cons of each type.
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Talk to an expert
Our business succession experts can help you determine a plan that works best for you and your business.
