Transitions & Exit Strategies
All businesses go through evolutions, whether it is identifying new directions for the company, losing a key client, partners wanting to pursue other opportunities or business owners passing down ownership to their children.
Many times life events develop the need for these transitions, especially as founders approach retirement.
The most overlooked question when anticipating a transition is, “Am I ready?” Whether it is financially, emotionally or structurally, we help you get there.
By identifying desired outcomes, outlining achievable milestones in an ideal timetable and developing a strategic roadmap to further prosperity, we help businesses successfully navigate these transitions.
Most first generation business owners envision their business surviving well beyond them, establishing a legacy for generations to come. Even for the most harmonious of families, intertwining family dynamics and business can be a challenging process, one that needs delicate care, balance and a well communicated strategic plan built around long-term goals.
Additionally, the transition from the founders to the next generation is the most challenging. It is imperative that it be done strategically to establish the groundwork for future business success.
Key things to consider in this process are establishing ownership percentages, sustainable succession planning, leadership roles and responsibilities as well as maintaining the integrity of the founder’s wishes.
ECG helps business owners establish their goals and maneuver the transition to ensure future success. Depending on the number of heirs, size of the company and specific outcomes the founding generation wants to see, we help establish a process for ownership shares, clearly identify roles and responsibilities, develop and train a Board of Directors and put an exit plan in place for the founders.
Many life factors lead to the dissolution of partnerships, from disinterest, disagreements, divorce to countless others. With most partnerships not having in-depth partnership agreements, outlining specific guidelines around ownership percentages, resolving disputes or plans of action addressing inevitable life factors, seeking experienced arbitration at the point of separation is imperative.
ECG helps businesses manage the exit of a partner in a way that maintains the integrity of the business, while honoring and accurately compensating the exiting partner. Our goal is to avoid legal action, mitigating disputes and successfully transitioning the partner with all key stakeholders’ concerns being addressed.
Businesses with multiple partners or stakeholders will inevitably have different outlooks and opinions on the direction of the company, whether it is launching new products, speed of growth, investing revenues and countless other business decisions.
ECG mediates these differences, using them as an opportunity to redefine direction and create consensus moving forward. Once we establish a clear path for moving forward, we will work to develop a plan of action to achieve clearly defined goals.
Businesses are complex entities. In today’s age, leaving a business is not as simple as cleaning up shop and locking the door. Establishing and implementing a long term plan is crucial for a successful transition from business owner to whatever adventure is next.