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Take Charge of your Legacy.

Build the Rest of Your Life.

Planning a Successful Business Transition


Sikich helps owners answer: � H  ow much is my business worth? � H  ow much do I need to retire? � H  ow much will I have after taxes? � What will happen to my employees? � Is there a “gap” between what I need and what I have?


I couldn’t have dreamt where I would be right now. Having the Sikich team in my corner has secured the future of myself, my clients, and my employees. If I could tell owners one thing: get started early to ensure you leave your company when and how you want – with money in hand.




Business Succession Planning for Freedom Business Succession Planning is a way to run a business that maximizes enterprise value and provides a means to achieving an owner’s personal and financial goals.

Before you begin

1

A Client Action Plan addresses all the business, personal, financial and tax issues of a privately owned business. Business Succession Planning starts by aligning your personal, financial and business goals. We take a personal approach to this, by talking in real terms with you about your vision for your family, your lifestyle, and your future. You begin with a realistic picture of what your business is worth. The first questions your advisor will discuss with you are:

�D  o you know what your business is worth? �H  ow attractive is your business from a buyer’s point of view? � I f you received an offer today, are you ready to accept it? �W  hat are you doing to mitigate risk? �A  re you focused on creating value or sustaining a lifestyle? � Who is a likely successor? � What is your timeline? �W  hat is next for you in retirement? A Sikich Advisor will help you work through these concerns to develop an action plan. This usually starts with a valuation for what your business is worth in today’s market. Next, we will begin preparing your company for transition.


Pre-Transition Assessment

2

Growing Value: Once you have a clear picture of what your business is worth you can begin to look at areas for value enhancement, including:

� Personal Factors

� Legal/Regulatory Demands

� Business Operations

� Financial Details

� Industry/Market Factors

� Risk Factors

Your Sikich Advisor will work with you throughout to execute a plan for maximizing value and increasing your company’s salability. Having a wellconstructed plan supports your growth projections and puts you in the best position to deal with buyers.

3

The Transition Once you have aligned your goals, have a realistic understanding of what your business is worth and have implemented value enhancement ideas, the next step is the transition. There are two general categories for transition: inside or third party. It is best to explore all options as there are misconceptions about both transitions. Your advisor will help you assess each option. Most business owners aren’t aware of all the options available. No matter which route you go, your advisor will make sure that the outcome is aligned with your goals and help you find your markets.

Here are some scenarios for transition options:

Inside:

� Intergenerational Transfer � Management Buyout � Sale to Existing Partners � Sale to Employees � Professional Manager � ESOP

Third Party: � Sale to Third Party � Recapitalization � IPO � Orderly Liquidation � Private Equity Firm


4

Personal and Financial Freedom From the first meeting of discovery, our integrated team of experts will help answer important questions and create a successful business succession plan suited to complement your retirement lifestyle needs. Integrated means you have different components of the plan working in concert: certified valuation, merger & acquisition, wealth advisory, insurance, retirement and estate planning and tax strategy experts will craft a customized plan around your vision for the future. A sound transition strategy is developed and achieved through the alignment with both your personal and financial goals, taking into consideration every relationship, milestone and aspiration you value. Sikich secures your financial legacy so that you can enjoy the personal freedom to choose how to use your wealth.


Your Wealth Strategy For an integrated approach, look to our Wealth Management Equation

WM = IC + RM + AP Wealth Management

Investment Consulting

Relationship Management

Advanced Planning

Investment Consulting is making smart decisions with financial resources, personalized to each client.  elationship Management requires a detailed understanding of a R client’s financial wants and needs, family, working in harmony with other professionals, and aligning the team with the plan. Advanced Planning addresses your far-reaching financial needs, including wealth enhancement, wealth transfer, wealth protection and charitable giving. Advisory services offered through Sikich Financial, a Registered Investment Advisor.

Contact our Business Succession team at Succession@Sikich.com

www.sikich.com


Sikich creates an action plan for business owners that maximizes value and minimizes taxes to accomplish personal goals and financial objectives.

Thomas E. Bayer,

Ray Lampner,

CPA, CSPM, CExP

CPA, ABV, CVA, CFF, CGMA, CEPA

Partner

Partner

Sikich LLP Phone: (217) 862-1704 Fax: (217) 862-3102 Tom.Bayer@Sikich.com

Sikich LLP Phone: (330) 572-8014 Fax: (330) 864-6918 Ray.Lampner@Sikich.com


Sikich Succession Planning