Exit Planning & The Future of Family Business

We are holding small events throughout the year to celebrate our 25th Anniversary. Please join our friends at Porter Wright for a rooftop happy hour reception and a discussion on exit planning and what future trends in family business might look like. Please feel free to register  a guest.

I.          Introduction—Family Business Trends for the Future
 
            A.        Economic volatility—how will you change with the economy?
                         1.         Inflation
                        2.         Labor talent scarcity
            B.        Digitalization and cybersecurity/Embrace new technology
            C.        Trust and profitability
            D.        Succession and wealth transfer
 
II.        Why do Reports on Family Business Trends Focus on Succession Planning?
 
            A.        Transition is inevitable.. How will you plan for it?
                         1.  Bright Star Capital Partners Report:  61% have no plan!
             B.        Transition creates potential for family conflicts and opportunity
                         1.         What are the goals? 
                                               Maintain the business/tradition/culture
                                                Transfer wealth in a tax-efficient manner 
                        2.         Who are the stakeholders?
                                                Business owner and spouse
                                                Family members inside and outside of business
                                                   Key employees
                                                  Community
III.       Types of Transitions
             A.        Company stays in the family
             B.        Third party exits
             C.        Internal (employee-driven) exits
 
IV.       Current M&A Market Landscape
 
V.        Third Party Exits
            A.        Strategic buyer
            B.        Private equity
 
VI.       Internal (Employee) Succession
            A.        Buyout
            B.        ESOP
 
VII.     Next Steps
            A.        Identify your goals and desires.  Talk to key constituencies about these goals to anticipate any concerns or conflicts early.
            B.        Educate yourself about strategic alternatives to determine which one best accomplishes your goals.
            C.        Develop a roadmap and timeline for your transition.
            D.        Implement the process.
            E.         Trusted advisors can help with each of the prior steps!