In addition to accelerating receivables, lockbox services can help companies be more resilient, says Behanna. This was particularly evident in 2020 when many organizations transitioned employees to virtual work environments, putting a strain on accounting departments and the ability to manually collect and deposit checks.
PLANNING FOR THE NEXT CHAPTER In an industry as knowledge-, skill- and relationship-based as professional services, it should come as no surprise that succession planning is an important element of a holistic business plan. “It is never too early to begin planning for business succession,” says Charlotte-based Jim Benedict, PNC senior wealth strategist and private business strategist. “With professional practices, there often is a split in value among practice revenue, ownership of real estate and equipment, and leading the practice. That’s why a vital aspect of succession planning is understanding the relative value of
the company and how the various components of the business will be transferred at the time of exit.” Another crucial element of succession planning is identifying likely successors well before an owner plans to exit, says Benedict. That way, future leaders can be brought into the practice and develop relationships with existing clients. And, in the event of an unplanned exit, the company is equipped for a change in leadership. Yet another consideration that is more deeply felt by owners of professional services companies is the value needed for a smooth exit, says Raleigh-based Michael Moyer, PNC senior wealth strategist and private business strategist. “The value of a professional service firm is greatly enhanced if successors to a retiring partner are well-integrated into the practice, and have been delivering valuable services to firm clients in the years before an exit,” says Moyer. “From a retiring partner’s perspective, it’s important to get started early, and build value outside of the business so they are well positioned for retirement and the future.”
For more information, please contact your PNC Relationship Manager or visit www.pnc.com/cib.
Regional Presidents: Weston Andress, Western Carolinas: (704) 643-5581 Jim Hansen, Eastern Carolinas: (919) 835-0135
Important Legal Disclosures and Information This article was prepared for general information purposes only and is not intended as legal, tax or accounting advice or as recommendations to engage in any specific transaction, including with respect to any securities of PNC, and do not purport to be comprehensive. Under no circumstances should any information contained in this article be used or considered as an offer or commitment, or a solicitation of an offer or commitment, to participate in any particular transaction or strategy. Any reliance upon any such information is solely and exclusively at your own risk. Please consult your own counsel, accountant or other advisor regarding your specific situation. Neither PNC Bank nor any other subsidiary of The PNC Financial Services Group, Inc. will be responsible for any consequences of reliance upon any opinion or statement contained here, or any omission. Any opinions expressed in this article are subject to change without notice. PNC is a registered mark of The PNC Financial Services Group, Inc. (“PNC”). Bank deposit, treasury management and lending products and services are provided by PNC Bank, National Association, a wholly owned subsidiary of PNC and Member FDIC. Lending, leasing and equity products and services, as well as certain other banking products and services, require credit approval. Equipment financing and leasing products are provided by PNC Equipment Finance LLC and PNCEF LLC, which are wholly owned subsidiaries of PNC Bank, National Association, a subsidiary of The PNC Financial Services Group Inc. ©2021 The PNC Financial Services Group, Inc. All Rights Reserved. J U N E
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