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Planning to Sell or Step Back? Fix These Transition Risks First
When preparing for a business transition—whether passing it to a family member, selling to an external buyer, or stepping back from daily operations—certain risks can significantly impact the process. Two of the biggest challenges business owners face are customer concentration and management team readiness. These factors can affect business valuation, buyer interest, and long-term stability after the transition. Addressing these early can make the difference between a smooth transition and one …
How Is the Value of Your Business Calculated by the Market?
For business owners thinking about selling, transitioning ownership, or simply strengthening their company’s financial position, understanding business valuation is essential. The market doesn’t just look at revenue—it assesses profitability, risk, industry conditions, and future potential. Knowing what factors drive business value can help owners make smarter decisions to increase their company’s worth.
Key Factors That Determine Business Value
- Financial Performance – Profitability, cash fl…
Getting Ready for the Change: How Long Should You Prepare for a Business Transition?
Succession planning isn’t something that happens overnight. Whether passing the business to a family member, selling to an external buyer, or transitioning to employee ownership, proper preparation takes time—often more than business owners expect. The earlier you start planning, the more control you have over the outcome and the smoother the transition will be.
How Long Does It Take to Prepare for a Transition?
The ideal timeframe for preparing a business transition is 3 to 5 years before the…
Considering an External Sale? What Business Owners Need to Know
For many business owners, an external sale is the best path to exit. Whether selling to a competitor, private investor, or private equity firm, a well-planned transition can provide financial security and ensure the company’s long-term success. However, selling a business isn’t as simple as finding a buyer—it requires careful preparation, strategic decision-making, and an understanding of the potential benefits and challenges.
Key Considerations for an External Sale
One of th…
Will Your Business Survive the Next Generation? Here’s How to Plan for It
Passing your business to the next generation is a major milestone—one that requires careful planning, strategy, and open communication. While the idea of keeping a business in the family is appealing, the reality is that many family-owned businesses don’t survive the transition. In fact, only 1 in 3 make it from the first to the second generation, and just 1 in 8make it to the third.
As a CFO with over 30 years of experience, I specialize in helping business owners navigate these transitions—av…
Debt as a Tool for Succession Planning: Financing a Smooth Ownership Transition
Succession planning is a critical step for any business, especially family-owned and privately held companies. Whether you're passing the business to the next generation, selling to an external buyer, or transitioning to employee ownership, having a solid financial strategy is essential. One powerful but often overlooked tool in succession planning is debt financing. When used strategically, debt can facilitate a smooth transition, ensuring business continuity and long-term success.
How D…
Good Debt vs. Bad Debt: Unlocking Smart Growth for Your Business
When it comes to borrowing, many business owners instinctively shy away from debt, viewing it as something to avoid at all costs. However, not all debt is created equal. In fact, understanding the difference between good debt and bad debt can be a game-changer for your business’s growth.
What Is Good Debt?
Good debt is borrowing that creates value or enhances your business’s future performance. Examples include:
- Investing in Growth Opportunities: Expanding your operations, upgrading e…
Empowered Succession Planning: Lessons Learned from Decades of Experience
As a fractional CFO specializing in family-owned businesses, I’ve witnessed firsthand how lack of preparation can devastate even the most successful companies.
I recently discussed these principles on the Journeys of Not So Ordinary People Podcast with Dr. Joe Hamlett and Dr. Dave Peltz. We explored the emotional and financial challenges of succession planning, along with practical strategies to prepare for the future. The conversation highlighted why so many businesses fail to plan adeq…