Business Succession Solutions
Confidential between you and your team at Myslajek, Kemp & Spencer, Ltd.
According to the SBA, the #1 reason most business transitions fail is due to a lack of planning. A successful transition can take years to execute. On average only 25% of businesses sell. There’s a tidal wave of competition coming as the baby boom generation business owners begin to retire. The business owners who are successful are going to be those that planned ahead!
The #2 reason business transitions fail is business owners can’t let go. You’ve worked hard and built your business. One way or another, you will exit the business. Having a plan and executing it increases the chances the people you care about (family, employees, customers) will be taken care of. Having a vision of your satisfying life after you exit will help you avoid procrastinating on developing your plan. Before you talk to your lawyer or a business broker get your business financials and exit plan in order.
How We Help:
Only 25% of the business owners have a Succession plan. We believe it’s our duty to help you!
Valuation Services
Whether it’s a family member, employee group or large corporation, you will have a difficult time transitioning your business without knowing its worth. Negotiations will be less stressful for both sides. We will help identify which assets to include or exclude from the sale. You also need to understand your risks and quantify intangible assets. It may not be worth as much as you’d like. Completing a Valuation with a licensed professional will result in a realistic idea about price expectations. Your tax advisor can help you complete our Sellers Discretionary Earning Worksheet and Multiplier to determine when you should invest in a Business Valuation.
Selling Your Business
Myslajek, Kemp & Spencer, Ltd. has teamed up with Exit Strategy Planners to help you sell your business when the time is right. They are experts at creating a plan to help you exit your business, your way. They have an educational website that has some exercises that can help you quantify where you’re at in your succession planning process. When selling your business, you need to make sure the business continues to run at optimum levels. This means Working in the Business 75% of the time. The other 25% of your time should be working strategically on your Business. When you’re seriously considering selling your business, you must ask an all-important question: “What am I doing to increase the asset value of my business?” ESP has created a structured sales process which will help you with strategic decisions and a successful transition.
Due Diligence Services
Buyers want the facts, and they will be asking scores of financial questions. You need to be prepared to answer questions about the reporting end of your business. This includes balance sheets, assets and liabilities and the taxation position. They all need to be ready to view and in a professional package when you’re selling your business. Assume the person or corporation considering the purchase of your company is going to do an outstanding job of due diligence so prepare accordingly. You’ll need clean financials (ideally from the most recent five years), as well as payroll details and a clear explanation of each P&L line item. We help you be prepared to answer the hard questions and we will be there to help you.
