Business Succession Planning Services & Consulting | The McFarland Group

Succession Planning

Why sell your company to management?

Business owners choose to sell their company to management for three reasons;

Legacy. They want to leave a legacy behind and ensure the company they have built and the people who worked alongside them will continue to thrive and make a positive impact.
Trust. Relationships were built with the management team and the owner may have made promises to them that they would have an opportunity to own and run the business in the future.
Control. In a sale to management the selling owner retains control over the timing of the change in control, the terms of payment and ultimately the taxation of the transaction.

Why hire The McFarland Group for your Business Succession Plan?

Our Expertise

The process of developing an effective succession plan can be complex, and it requires a great deal of expertise in areas such as business valuation, tax planning, and estate planning. Our advisors with experience in this area can provide valuable guidance and support, helping to ensure that the plan is comprehensive and effective.


Our advisors can provide a fresh perspective and offer objective advice that may be difficult for the owner to obtain from internal stakeholders or family members.

Relationship Dynamics

Succession planning can be particularly challenging in closely held businesses with multiple owners, where emotions and relationships can complicate decision-making. Our advisors can act as a neutral third party and help navigate these complexities, ensuring that the plan is fair and equitable for all parties involved.

Designing an ownership succession plan can help ensure the long-term success of a business and provide peace of mind for the owner(s) and their families.

Succession Route Assessment Deliverables

The engagement will culminate with a written plan that will provide for the orderly transition of leadership, ownership and control of the company to management. Here are some examples of possible deliverables:

Succession planning assessment report

An initial report that summarizes the current state of the business and identifies key areas of opportunity or risk for succession planning.

Business valuation analysis

A comprehensive analysis of the business’s value and potential sale price, taking into account various factors such as financial performance, market conditions, and industry trends.

Exit strategy analysis report

A report that outlines potential exit strategies for the business, including pros and cons, risks, and costs associated with each option.

Ownership succession plan

A detailed plan outlining the steps and timeline for transitioning ownership of the business to the next generation or other designated successors, including legal, financial, and operational considerations.

Management transition plan

A plan outlining the steps and timeline for transitioning management responsibilities to the next generation or other designated successors, including training and development programs.

Estate planning recommendations

Recommendations for estate planning strategies that can help minimize tax liabilities and ensure that the business is passed on to the next generation in a smooth and efficient manner.

Investor communication plan

A plan for communicating the succession or exit plan to key stakeholders, including investors, employees, and customers.

Implementation support

Ongoing support and guidance to help ensure that the succession or exit plan is successfully implemented, including project management, legal and financial advice, and training and development programs for the next generation of leaders.

Overall, the deliverables of a consulting engagement to develop a plan for ownership succession or exit will be tailored to the specific needs and goals of the business, and will be designed to provide a comprehensive and actionable roadmap for achieving a successful transition.

Succession Route Assessment

We follow the proven process that has allowed over a half a billion in business value to be transferred successfully to management while providing the selling owner with financial independence and peace of mind.

How your Succession Route will be developed:

Establish goals and priorities

The advisor will work with the business owner to establish clear goals and priorities for the business succession plan. This will include a determination of the resources needed to realize financial goals; the ideal timetable for the change in control; and a range of terms that would be acceptable.

Evaluate potential successor(s)

Our advisors will work with the business owner to identify potential successors, including family members, key employees, or outside buyers. This will involve assessing the strengths and weaknesses of each potential candidate, and determining which individuals are best suited to lead the business into the future.

Calculation of business value

Our advisors will perform a comprehensive business valuation analysis to determine the current value of the business and potential sale price. This will involve analyzing financial statements, market trends, and other relevant data to establish a fair market value for the business.

Financial modeling

Our advisors will prepare detailed financial models of possible sale scenarios that meet the business owners risk tolerance and incorporate common commercial lending ratios. The models will illustrate what’s possible and feasible in the sale structure.

Risk assessment

Our advisors will analyze the potential risks and uncertainties associated with the sale and develop strategies to mitigate or manage those risks. It will consider the potential impact on the business value and both the selling owner and the buyers.

Develop a succession plan

Based on the assessment and established goals, the consultant will develop a detailed succession plan that outlines the steps and timeline for transitioning ownership of the business to the next generation or other designated successors. The plan will include legal, financial, and operational considerations, such as estate planning, tax strategies, and management transition plans.

Enjoy the peace of mind that comes with knowing you’re prepared to transfer your company for the value you deserve, to the people you care about, and on the timeline that makes sense for you.

Streamside Chats

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Owner Readiness

Successor Readiness Assessment