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Family Business: 7 Tips for Selecting a Successor

Posted by Concannon Miller on Tue, Dec 31, 2019

Long ago, in some countries, kingdoms used to be passed to the oldest child — and often, the oldest male. While this may have had advantages in ancient monarchies, it has no place in family businesses.

In the case of family-owned businesses, it is still sometimes the practice to install the oldest child, and the oldest son, as the successor CEO.

Experience shows that this often leads to inefficiencies and mistakes that jeopardize the continued existence of these family businesses. An old saying, "shirtsleeves to shirtsleeves in three generations," describes the fact that many family businesses that are passed down to children and then grandchildren tend not to survive through the third generation.

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Topics: Succession planning

Selling Your Business? How to Increase Business Value (Video)

Posted by Andrea Brady and Andy Kahn on Thu, Nov 21, 2019

Most businesses that go to market don’t sell, largely because they’re not attractive enough.

How can you get top dollar for your business? We use the tested and trusted Value Builder System to help business owners discover steps to improve their business value. Improving your Value Builder Score may more than double your pre-tax sale price.

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Topics: Succession planning

Business Succession Best Practices – Family Transfer or Third Party Sale (Video)

Posted by Andrea Brady and Andy Kahn on Tue, Oct 15, 2019

A business owner's net worth and future income depends on the value of your business, whether you plan to sell it or pass it along to the next generation.

As you look towards your future, succession planning is the key to growing and getting the most out of your business.

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Topics: Succession planning

4 Value Drivers for Boosting Business Sale Price

Posted by Concannon Miller on Thu, Sep 26, 2019

In today's environment, it's important for business owners to focus on the value of their company and what drives it. The objective of this article is to look at value drivers for operating businesses, as opposed to businesses that are asset-based, such as real estate or securities holding companies.

Under the market and income approaches, operating businesses are valued based on how much cash flow they're expected to generate in the future. In other words, cash flow drives value.

If you want to increase value, you need to increase sustainable cash flow.  Notice, we said the sustainable cash flow. While it might look good to have a short-term increase, an educated buyer will see through any non-sustainable increases and adjust those in determining the purchase price.

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Topics: Succession planning, Business Valuation

Own a Family Business? Value it Internally & Externally

Posted by Concannon Miller on Thu, Jun 27, 2019

While preparing your succession or estate plan, it can be helpful to value your family business both internally and externally.

You might wonder what that means — because you think your company has just one value. In fact, it can have multiple values depending on the valuation standard used. The different results can help you determine whether to keep the family business, pass it on to the next generation or sell it to an outsider.

Two common standards used in valuing a family business are:

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Topics: Succession planning, Business Valuation

Don’t Overpay for a Business Acquisition: Tips from Exit Planners

Posted by Andrea Brady and Denise Hozza on Thu, May 2, 2019

Business exit planning advisors Andrea Brady and Denise Hozza were quoted in a recent Lehigh Valley Business article about how not to overpay for a business acquisition. Brady, a Concannon Miller shareholder, is a Certified Exit Planning Advisor and Hozza, a Concannon Miller director, is a Certified Valuation Analyst. Check out their insight and advice below:

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Topics: Succession planning

Certified Exit Planning Advisor: Factors of a Successful Business Sale

Posted by Andrea Brady on Tue, Apr 9, 2019

Certified Exit Planning Advisor Andrea Brady, a shareholder with Concannon Miller, was quoted in a recent Lehigh Valley Business article about the factors at stake in a successful business sale. Check out her insight and advice below:

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Topics: Succession planning

Tips on Selling Your Business from a Certified Exit Planning Advisor

Posted by Andy Kahn on Thu, Mar 7, 2019

Certified Exit Planning Advisor Andy Kahn, a shareholder with Concannon Miller, was quoted in a recent Lehigh Valley Business article about the current state of business mergers and acquisitions (M&A). Check out his insight and advice below:

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Topics: Succession planning

Business Succession Planning: How to Start Your Exit Plan

Posted by Concannon Miller on Thu, Nov 8, 2018

The business world is in for a major generational shift – a recent survey found 79% of business owners plan to exit their businesses within the next 10 years.

The survey, conducted by the Business Enterprise Institute and the Conway Center for Family Business, found more surprising statistics. Only 30% of family-owned businesses succeed in transitioning their business to the second generation, and only 10% succeed in making it to the third generation!

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Topics: McDonald's management, Succession planning

The Exit Path: Transfer Ownership of Business to Active Family Members

Posted by Angel Chiariello on Thu, Oct 11, 2018

In many ways, selling to a third party is far easier than selling to a family member – it is usually less emotional, and the focus is entirely on transferring the business.

To sell to a family member, it requires a plan for working with your family, transferring your knowledge and transferring the business. Of course, from our experience, the extra effort is worth it when you are rewarded with seeing your business continue on as a legacy for generations to come.

To accomplish your exit plan, you will need to plan early and communicate openly and often. Both parents and Next Gens must set expectations, and put the plan in writing. If you have an exit planning team, they can help keep you focused on achieving your goals and keep you on track in the process.

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Topics: McDonald's management, Succession planning

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