Thank you to the SBA and FocusCFO for the opportunity to address nearly 100 business owners across the state on multiple topics, including the current economic environment and succession planning. As a business advisor and tax planning attorney, I truly enjoy handling mergers and acquisitions for our clients, and the overall succession plan is a big part of that. During today’s presentation, Jeff Lacy and I touched on factors contributing to the successes and failures of succession planning and more. We discussed, among other topics, what is a succession plan and what are the options?
As an example, when thinking about a “succession plan,” we discussed:
- What it means.
- That it is different for every individual and every business.
- That generally, when talking about a succession plan, we are talking about succession of leadership and ownership, both critical to the long-term success of a business.
- That the current economic climate makes this one of the most opportune times in recent memory to transfer interests.
- That it absolutely is a seller’s market, and will remain so for some time.
We also discussed some of the options, including:
- Transfer of interest to family member/friend.
- Transfer of interest to a key employee.
- Sale to a third party, and strategic buyers versus financial buyers.
- Sale to more than one employee, including through an ESOP transaction.
Some of our key takeaways from the discussion:
- From this point forward, approximately 10,000 Boomers a day will achieve the 75-year old threshold and by 2030, all Boomers will be at least age 65.
- The greatest wealth transfer in the history of the United States will occur over the next 15 years.
- Do not be on the sideline. Properly plan and avail yourself of those opportunities, whether you are a seller, a buyer, a key employee, or an advisor.
- Understand your options and set your path forward.
- Recognize that: “The path we choose will determine our final destination.”
- And finally, leaders that fail to care about their team will ultimately find themselves surrounded by team members that do not care about their businesses (or the businesses’ customers).
It was a great discussion and I appreciate both the SBA and FocusCFO for allowing me to participate. What a great group of business partners.