At Geyer Law, in addition to our estate planning and elder law services, we assist with business planning and formation. As a new business is formed, we help owners determine its structure, find a location, and secure proper financing. But even at the very early stages of a business, we stress the importance of carefully creating a succession plan. Having these conversations upfront, we emphasize, can avoid costly disputes in the future that can destroy a business’ financial stability…
“Are you ready?” When mergers and acquisitions advisor Kregg Kiel begins a conversation with entrepreneurs, he knows there are two dimensions to be explored: On a personal note, are the owners emotionally and financially ready for “retirement”? On the business side, the evaluation of the “readiness and attractiveness” of a business to “command a good price” has four dimensions:
- Human capital – who’s on the team/ who has an ownership stake/ who is an heir?
- Structural capital – systems/procedures/ equipment/accounting procedures?
- Customer capital – is there a loyal base of repeat customers?
- Social capital – top-down or tiered decision making? Is the atmosphere one of conflict or esprit de corps?
For maximum effectiveness in preparing for and expediting the sale of a business, the CEPA (Certified Exit Planning Advisor) program recommends that the transition team should consist of at least four types of professional advisors:
- a CPA
- a wealth manager
- an attorney
- (in many cases), a business coach
For our Geyer Law small business owner clients, we’ve found, business planning, tax planning, and estate planning are woven together. Even then, with apparent “readiness” in place, Kregg Kiel reminds clients to anticipate a six to twelve month process for “exiting” a business.
As we discuss estate planning with our Geyer Law clients, whether they happen to be “newbies’ or seasoned business owner-operators, that word — “readiness”– represents the nexus between our work and that of Kregg and his colleagues. When an owner says “I will not be ready to go to market for many years”, Kregg reminds them that it would take just one unexpected event to force them to be ready:
- a divorce
- a disability
- a death
- an outside economic factor impacting the business negatively
Having dealt with Indiana business owners for a quarter century, at Geyer Law we’re all too aware of the importance of business succession planning. We know – having business succession planning conversations now can help avoid costly disputes and pain later on. By facilitating in-person or virtual “family conferences” to discuss sensitive business succession matters, our hope is to enable open discussion among future heirs (or to prepare for the transfer of business interests to employees or to outside buyers).
In personal life, in family life and in business, creating and periodically revising a plan is the key to success. Our mission at Geyer Law is to help our business owner clients get their “heads in the game”.
– by Ronnie of the Geyer Legal Group, PC blog team
 Kregg Kiel (https://www.caldergr.com/team/kregg-kiel/) is a Mergers and Acquisitions Advisor with Calder Capital, guiding Indiana business owners through the complexities of the M&A process, vetting potential buyers, conducting due diligence, and structuring deals.
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