/
Taking the Next Step:   Some Thoughts about SUCCESSION PLANNING Taking the Next Step:   Some Thoughts about SUCCESSION PLANNING

Taking the Next Step: Some Thoughts about SUCCESSION PLANNING - PowerPoint Presentation

lindy-dunigan
lindy-dunigan . @lindy-dunigan
Follow
381 views
Uploaded On 2018-03-18

Taking the Next Step: Some Thoughts about SUCCESSION PLANNING - PPT Presentation

prepared for the Principals Directors and Managers of NAI Global Las Vegas January 2008 After a long flight it is reasonable to expect a safe landing We want to prepare you for the transition of your business through successful exit or succession ID: 656268

succession plan market personal plan succession personal market checklist firms exit firm ownership determine case financial years find set

Share:

Link:

Embed:

Download Presentation from below link

Download Presentation The PPT/PDF document "Taking the Next Step: Some Thoughts ab..." is the property of its rightful owner. Permission is granted to download and print the materials on this web site for personal, non-commercial use only, and to display it on your personal computer provided you do not modify the materials and that you retain all copyright notices contained in the materials. By downloading content from our website, you accept the terms of this agreement.


Presentation Transcript

Slide1

Taking the Next Step: Some Thoughts about SUCCESSION PLANNINGprepared for the Principals,Directors and Managers of NAI GlobalLas VegasJanuary 2008Slide2

After a long flight, it is reasonable to expect a safe landing.Slide3

We want to prepare you for the transition of your business through successful exit or succession.Slide4

Some sobering statistics: Over the next decade hundreds of firms will transfer ownership through sales, merger or acquisition or close their doors altogether. Less than 20 % of independently affiliated firms set annual goals. Less than 5 % of independently affiliated firms have strategic plans.Reminiscent of the old law school warning: look to

the left and to the right; in 5 years 1 of you will be gone.Slide5

Many of you are approaching a fork in the road with two strategic options:SUCCESSION or EXITSlide6

You do, of course, have the option of playing it out to the very end.Nowhere is the old saying truer than here: failing to plan is planning to fail.Slide7

Two possible strategies:SUCCESSION: the ownership and management of your company is transferred to new owners and managers and you maintain somerelationship with the firm. You are, however, slowly phased out by a successor or successors.This is achieved through the implementation of a 3 to 5 year plan. EXIT: the ownership of your firm is sold outright. In most cases you disassociate from your business totally.Slide8

Note: do not proceed without a personal financial plan!And start a conversation NOW with yourspouse and children about the future.Slide9

This is the first decision of many you need to make about the future:DO YOU HAVE A NEED TO STAY INVOLVED?Slide10

The choice between succession and exit depends on a series of factors:FINANCIALThese factors are systemically inter-related.

OPERATIONAL

PERSONAL

MARKETSlide11

The Financial Checklist: determine your assets. determine your value assess the market (who would/could buy us?) assess different sell/buy-out strategies.Slide12

$$$$$$ FINANCES $$$$$$Property and equipmentContractsReceivablesPeopleRelationshipsGood name, good willBrandMarket positionDetermine your assets.Slide13

The question of valuation:Rule of Thumb = 4 to 5 times multiple of net revenuesFuture cash flowAre there buyers? Existing partners Brokers and employees Competitors mergers acquisitions Networks or national firms

$$$$$$ FINANCES $$$$$$Slide14

The Operational Checklist: take a hard look at sustainability develop a phased-in plan of delegation find balance between being a lame duck and a fifth wheel.Slide15

Operations… Operations… OperationsLeadershipPotential partnersKids and other family membersAdministrationSales Staff the case of the 20:80 the case of the missing middle the case of the empty coolerClientsIssues of sustainabilitySlide16

Need to delegate.Need to find balance.Slide17

The Market Checklist: how will your clients react? are you connected to the next wave market? how will your competitors react?Slide18

The Personal Checklist: are you ready for this?mentally ready?financially prepared?can you let go?

what does your spouse think?

what do your heirs think?

Legacy planning.

START NOW!Slide19

VERY NEXT STEPSGet your personal financial plan in order.Determine what you CAN do with the firm.Make a decision about what you WANT to do.

Set goals for where you

MUST

be in 3 years.

Take action.