Business Succession

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What Type Of Exit Plan Do You Need?

Our experience shows that every business is different as is each owner’s relationship with their company. That is the primary reason that our exit planning work is offered on a customized basis. That being said, there are general categories in which the majority of our exit planning clients fit. 

Micro-Market refers to businesses with less than $5 million in annual revenue. While these companies are the lifeblood of small business in America, they also, generally speaking, have less complexity to them than larger, middle-market businesses. 

Middle Market businesses have annual revenues between $5 million and $150 million. There are approximately 500,000 middle market companies in the United States today. These businesses, generally speaking, have better developed management teams, larger market share in their industries, as well as owners with more complex personal planning surrounding their exit. 

Construction and Contractor-Related Businesses are unique in their own regard. In many cases, a bonding company is a large partner in your business and has a say in any changes in ownership or to the balance sheet of your business. The majority of these businesses transition internally to managers and family members (perhaps with the use of an ESOP to assist). .

Licensed Practitioners (such as doctors, dentists, attorneys, etc . . .) are also in their own category for business transitions because, in a majority of states, only another licensed practitioner can serve as a principal / owner of the business. Therefore, the pool of potential buyers is limited and these businesses often-times need to look at management buyouts or roll-up companies in their industries.