Business owners who are thinking about an exit plan struggle on many levels with advancing forward. At its core, exit planning is about making a significant change in ones business and life. Therefore, the very personal aspect of this planning cannot be ignored. However, there is also a ‘company’ perspective to exit planning. This involves how your business will run without you one day. Do you have the people in place for the business to run without you? Are you engaging those people in a conversation about the future of the company, with or without you? Or are you, like many owners, thinking that you’ll construct your exit plan without the input of the people closest to you? This newsletter is written to help you have a better and stronger exit planning conversation with the people that you need supporting you with making this large financial and emotional change.
The Personal Nature of this Planning
Every exit planning conversation will have confidential topics that the owner wants to share, at least initially, with only a few people. You can have these conversations with your most trusted advisor(s) and a select group of others, perhaps including your spouse. Your wealth, how much there is, where it will end up, who you want it to impact, and your own feelings of importance surrounding your role in your business are all very personal and not likely topics of conversation to have with managers and ‘outside’ advisors. Therefore, a select group of personal advisors can assist you in getting clarity on these issues.
However, it is recommended that you seek out an individual who can transcend the personal issues that you are discussing to also assist you with the business issues as well. This ‘quarterback’ is a trusted advisor who can take your personal objectives and translate them into actionable items for your business. After all, your company will transition to new ownership in the future. If you fare well in this process, your personal goals will be met with your business objectives. Having an advisor who can see both sides of the equation is important. So the next question becomes who at your company can you confide in to assist with your planning?
Your Management Team and the Future Leadership / Succession of Your Business
Have you brought up the topic of your exit at the last meeting that you had with key employees and managers? Probably not. The likely reason not to bring up this topic is that most owners fear that their managers will assume that the owner is simply selling the business and the managers may begin to question their future role and career at the company under new ownership. As an owner contemplates the potential for this type of reaction, it becomes clear that a strategy is needed to have this conversation with the management team.
© Copyright 2013 Pinnacle Equity Solutions, Inc
Frank Mancieri, 401-651-1585, firstname.lastname@example.org