Transition Management
Transition Management is preparing your business to be sold or handed over to your successor(s).
Proven Benefits of Transition Management
- Collaborative approach
- Maximizes the value of your business
- Minimizes taxes at the point of selling your business
- Selects, trains and places the best corporate management team
- Readies the business and staff so successors are ready to take over
- Positions your company to fully realize its strengths and opportunities
- Creditor proofs yourself and your family
- Focuses you on what purchasers are looking for in your type of business
Work your plan
Now that you have a plan, the next step is to work your plan. ROCG calls this, “Readying the Business for Transition.” Shaping the business so it appears compelling to the prospective buyer.
This includes:
- Assigning projects to your key advisors such as accountants, attorneys, financial advisors — assignments that use their skills to accomplish the best results
- Preparing the seller to deal with the Due Deligence process
- Reducing the dependence of the business on the owner
- Placing key employees under contract
- Upgrading the skills of the successor(s) - when employees take over the business
- Demonstrable proof that the business will run profitably without the owner
- Setting things up so that in all likelihood key employees and customers will remain after the sale is complete
Preparing your business for Transition
A buyer will have to be sure that the business will continue to run as well or better when he/she takes over. ROCG are specialists in helping owners prepare their businesses for sale. This involves everyone on your team taking part. From your accountant to your banker, whether it is a legal matter or a tax issue, each team member has important contributions to make as experts who have worked with you in the past. When a buyer sees that your written business transition plan includes all the “What if” scenarios and that you have laid out a smooth path for him/her to take over the business, his/her level of confidence and internal certainty is enhanced.
Preparing for transition can be a dangerous undertaking. It can create an atmosphere of uncertainty for everyone: your employees, your management team, the bank, your family and you. There are many complex issues that need to be addressed. There are few professionals who possess all the skills of the ROCG team of specialists. Talk to us and you will soon discover what is the right way of negotiating the path. You’ll also see what horrible pitfalls await those who make just a single mistake.
