ESOP/Family Succession

ESOP/Family Succession by Jack Veale an ESOP Advisor.

Over the next 10 years, over 50% of the privately held, family owned or ESOP  businesses will be changing ownership.

Are you one of them?

What is your Plan?

If you have the financial picture figured out, what about the organizational and management plan?  Did you know that the most important value driver in most businesses and industries is management's capapcity to deliver on a promise?  That means your company's value and worth is not what the balance sheet says it is,  but is aligned to the future growth in revenues and profits that management promises to banks and to valuation experts.  If your management team cannot live without the owner or CEO, then the value of the company drops like a lead balloon.

We have entered into many companies where the finances and legal documents are all in place, but the business is  declining or running into the ground due to lack of bench strength.  We help companies avoid declines by engaging the management teams to improve performance and higher stock values. We are not financial advisors who sell financial products or business brokers who counsel owners in buying or selling businesses. We are Certified Managment Consultants, advising owners, boards, and C-Level executives on strategy, succession, and family or ESOP ownership issues.

We know that no privately held, or family business is the same. We help tailor our approaches to each business, and apply common sense to the development of the next generation of managers and leaders. No family owned business is the same. While some companies have family members in the business, others do not. So what are the choices? Our approach is to develop choices to choose from while increasing the value of the company that leads to a successful economic transition from one owner to another. We are results oriented, with deadlines and milestones.

The next generation of management isn't always the most obvious people. In some cases, the family members aren't capable to run the business. In other cases, they are capable but are not ready. Our approach is to develop as many people as possible, knowing that the "cream" will rise to the top, naturally. Our systems, tools and approaches enable competent people to develop the needed skills to successfully transition from one leader to the next. In some cases, an ESOP is developed to reward those people who helped build value for the owners.

We have witnessed the difficulty of a singular CEO transitioning to a sibling partnership. If it was easy, more and more businesses would survive the transition. But it is NOT easy. We strive to improve the communication between family members in and out of the business as the transition unfolds. In some cases our goal is to develop the management team and create communications systems that reduce conflict. We are NOT family psychologists or therapists, nor do we provide family therapy. We are seasoned management consultants with clients who want to grow their business value and develop their next generation of management to provide a secure exit plan.