Business Succession Planning Services & Consulting | The McFarland Group

Business Succession Planning Services: Map Your Route to the Future and get paid.

What We Do

Have you done any business succession planning? Will your team be able to run your business without you? Do you know who will buy your business from you when you’re ready to move on? What do you need in sale proceeds to exit your business and enjoy your post-sale lifestyle? How close are you to getting that value out of your company?

When you work with The McFarland Group to plan your Bankable Exit, our work begins long before you walk out the door. We work with you during every step of the exit planning process to build a comprehensive plan that allows you to act with clarity and confidence.

Ready to sell your business to key employees?

If you are like most of the business owners we guide, you aren’t certain how to determine your business value. If you do have a valuation, you may not know how much of the business value is attributed to you. Estimating business value and determining transferable business value are closely related when preparing to transfer business ownership.

Successor’s Ability

By selling your business to key employees, you know that the new owners are invested in your business and your vision. But how do you prepare to sell your business when your buyer is one or more of your own key employees? The McFarland Group’s business succession planning services will guide you through the process of preparing your business for sale to your employees, starting with helping you to understand exactly what that means for you, your business, and your future.

When you sell to an outside buyer, you are more likely to receive payment up front for the sale, but have a buyer who is unfamiliar with your business and company culture. Outside buyers have the financial means to meet your purchase price, which can be attractive to you as a seller. What they don’t have is that ground-up knowledge of your company from working by your side, possibly since the beginning. When you sell your business to an employee, on the other hand, you have a buyer with intimate knowledge of the company, but who may not have the cash required for an up-front payment. In this scenario, you are more likely to receive your compensation over an extended period of time, either from installment payments or directly from the business. When preparing to sell your business to employees, it is important to consider when you will receive payment and how to make that compatible with your long-term plans.

With all of the pros, there are still some things to be aware of when considering selling to employees. As mentioned, key employees tend to have less access to cash than outside buyers, so the way you get paid may look different when you sell your business to employees. We’ve talked about the employees you’ve decided to sell to, but what about the ones you exclude? There’s always the chance that your choice of specific employees above others will alienate or demotivate other valuable employees, and even that key employees will leave before you complete your successful transition. And from an employee’s standpoint, what does it look like when you’re buying a business from your employer? Many employees don’t have a full understanding of succession management and the steps required or what they need to know when buying a business. Our succession planning consultants will help you evaluate the readiness of your potential successors to help ensure your success.

Company’s Readiness

How do you know if your company is ready for sale? Preparing to sell your business is a huge undertaking, and whether you’re at the point of asking yourself, “I want to sell my business; where do I start,” or “I’m ready to move on to my next venture; how do I prepare to sell my business to my key employees,” our team can help. In addition to evaluating potential successors, we will help you prepare your business for sale.

Owner Readiness

You’ve determined that your company is prepared for the sale, but are you ready to sell your business to your employees? When you work with us as you prepare to sell your business, we will help you ensure that you are ready to achieve your vision. Because selling a business to key employees carries a unique set of risks and rewards, we help you navigate that journey with confidence. By understanding what you need from the sale of your company to enjoy your lifestyle after the sale, and knowing who is invested in your vision and goals, we help you achieve your goal of selling your company to your employees who will carry on your legacy.

Design Resources

The succession process is complex. Most small and family business owners don’t know what steps they need to take to manage the succession planning process, or even how to start. The McFarland group understands the challenges you face as a business owner, and we help you face those challenges head on when you’re planning the succession process for your business.

By starting your succession planning consulting process early, you begin with time on your side. You have the time you need to build the team who will help you achieve your goals, determine the financial outcome you need from the sale of your business, and equip yourself and your successor for the journey.

When you begin the succession process for a small or family business, a guide can help you ask and answer the important questions that help ensure you get what you need from your succession plan. The McFarland Group understands the challenges you face as you work to execute your plan, and we have transferred over $500MM in business value to management teams across the country. That experience allows us to guide you in your succession plan, helping to remove barriers to your goals, illuminate planning blind spots to reduce risks for you and your company, and defuse interpersonal minefields by providing clarity to you and your stakeholders.

Adapt Plans

If you are like most business owners, your company is both a great source of pride and the majority of your financial assets—as much as 70-90%. Your business is the result of your hard work and success. It’s also your source of income, and can be your source of future financial security, but you need an exit plan.

While some business owners would turn to an outside buyer, this scenario has its own drawbacks. For example, key employees, rather than being given an opportunity at ownership, are “handed over” to a new owner who may not understand or appreciate their contributions to the company’s success. In addition, the market value of your company may be lower than you expect. Remember that much your company’s value comes from you, and you’re walking out the door.

Fortunately, the situation is much brighter than it may initially appear. In fact, with the right strategy, it is feasible to construct a strategy that makes all parties happy. With the right team and the right planning, you get your Bankable Exit, while ensuring that you leave your company’s legacy in the right hands.