Succession and exit planning
Succession and Exit Planning for Business Owners
A plan for the day you step back, built years before you need it.
Why planning starts years ahead
Most of what shapes a sale is settled long before the sale starts: how clean the financials are, how much the business depends on the owner, how concentrated the customers are, and whether a management team can run it. Those take years to change, not months.
Business succession planning is the work of deciding who will own and run the company after you, and getting the company ready for that handoff. The answer might be family, the management team, an outside buyer, an ESOP, or a partial sale. Each one asks different things of the company and of the owner.
Planning does not commit anyone to selling. Many owners come away with a list of changes to make and a better sense of their options, and act on them years later, on their own schedule.
A readiness review
We look at the company the way a buyer or lender would, and tell you what we see.
Financial records
Whether the financials would hold up in diligence, and what to recast or clean up first.
Customer concentration
How much of the revenue depends on a few customers, and what would make it more durable.
Management depth
Who runs the company day to day and who could step up, with a plan to fill the gaps.
Owner dependence
Which relationships, decisions, and knowledge live only with the owner, and how to move them.
Your succession paths, compared
Each path trades off price, timing, control, and what happens to the people.
Family
Passing the company to the next generation, often over time and with help from your estate attorney. It keeps the legacy but rarely pays the owner as much cash up front.
Management
A sale to the people who already run the company, usually financed with bank debt and a seller note.
An outside sale
A sale to a strategic or financial buyer through a competitive process.
An ESOP
A sale to the employees through a trust, with tax advantages for some owners.
A partial sale or recapitalization
Taking some money off the table now and keeping a stake for later.
Advising boards and shareholder groups
Some decisions belong to more than one owner.
Strategic options review
A clear look at selling, raising capital, recapitalizing, or holding, for boards that need to decide.
When owners disagree
An outside view when partners or family shareholders want different things, so the decision rests on facts rather than positions.
Unsolicited offers
Advice when a buyer calls with an offer, including whether to test it against other buyers.
How planning works
Planning runs at the owner's pace. Some owners act within a year, others several years later.
A conversation
Your goals, your timeline, and what you want for the company and its people.
A readiness review
The company seen the way a buyer or lender would see it.
Options compared
Each succession path laid side by side for your company.
A plan
The changes to make, in order, and when to revisit them.
Check-ins
Regular reviews until you are ready to act, and help choosing the path when you are.
Who it fits
Owners several years from a decision who want to know where they stand. Family businesses with more than one generation involved. Companies with several shareholders who need to agree on a path.
If you are ready sooner, the same bankers who build the plan can run the sale, the raise, or the ESOP.
Not ready to sell? Start with a readiness review.
Talk to a bankerIndustries we serve
Each industry page covers what buyers look for in that field, which is where a readiness review starts.
Aggregates & Quarries
Sell-side M&A advisory for owners of crushed stone quarries, sand and gravel pits, and construction aggregates operations.
Aggregates & Quarries M&A
Steel Fabrication & Erection
Sell-side M&A advisory for owners of structural steel fabricators, miscellaneous metals shops, steel erectors, and bridge fabricators.
Steel Fabrication & Erection M&A
Paving & Asphalt
Sell-side M&A advisory for owners of asphalt paving contractors, hot mix asphalt plants, and highway and street construction companies.
Paving & Asphalt M&A
Construction
Sell-side M&A advisory for owners of general contracting, heavy civil, and specialty trade contracting companies.
Construction M&A
Oilfield Services
Sell-side M&A advisory for owners of oilfield services and energy services companies, including well services, water, rental tools, and production services.
Oilfield Services M&A
Manufacturing
Sell-side M&A advisory for owners of manufacturing companies, including machine shops, metal fabrication, machinery, and other industrial producers.
Manufacturing M&A
Reading on succession and exit planning
- Business exit planning
Why to plan the sale before you are ready to retire.
- Family business succession planning
Passing the company to the next generation.
- Financial readiness checklist
What to have in order before a sale.
- How to increase your business valuation
Changes that make a company worth more to buyers.
- Strategic financial advisory
What it covers and when owners use it.
Questions owners ask about succession and exit planning
When should I start planning my exit?
Three to five years before you want to step back is a common starting point, because the changes that matter most take time: building a management team, reducing customer concentration, and cleaning up the financials. Starting earlier gives you more paths to choose from. Starting later still helps, with fewer options.
What is business succession planning?
It is deciding who will own and run the company after you, and preparing the company for that handoff. The plan compares the paths open to you, such as family, management, an outside buyer, an ESOP, or a partial sale, and lists the changes that make the chosen path work.
What is in a readiness review?
We review the company the way a buyer or lender would: the quality of the financial records, customer concentration, management depth, owner dependence, contracts, and any issues diligence would raise. You get a written list of what helps and what hurts, in the order we would address them.
Family, management, or an outside buyer: how do I compare them?
Each trades off cash at closing, timing, taxes, control, and what happens to the people. A family transfer often keeps the legacy but pays less up front. A management buyout depends on financing. An outside sale usually brings the most cash at closing and the least control afterward. We lay them side by side for your company.
Do you advise boards and shareholder groups?
Yes. We advise boards weighing a sale, a raise, a recapitalization, or holding, and shareholder groups whose members want different things. We give an outside view of the options and what each would mean for the owners, so the decision rests on facts. When a buyer makes an unsolicited offer, we help decide whether to test it.
Does planning commit me to selling?
No. Planning gives you a clear view of your options and a list of changes that make the company stronger whichever path you choose. Many owners use the plan for years before acting, and some decide to keep the company. The changes usually help either way, since a company that runs well without its owner is easier to own as well as to sell.