"FISHING FOR VALUE" INTERACTIVE CASE STUDY: M&A, TAX, BUSINESS CONSULTING & EXIT PLANNING
The Fishing for Value case study revolves around Chuck Barrows, the owner of Barrows Ltd., a family-owned business specializing in pressure, temperature, and level gauges. Chuck is approaching retirement and wants to secure the financial future of his family while ensuring the business's legacy. However, Chuck lacks a comprehensive plan for the business's transition. To address this, a collaborative panel of experts is formed, including business consultants, tax advisors, and financial professionals.
The case study underscores the critical importance of exit planning and assembling a team of experts. Exit planning is essential for determining the future of a family-owned business, whether through succession, sale, or other strategies. Without a well-structured plan, the business's value, family harmony, and financial security may be at risk. Having a team of experts, including legal, financial, and industry specialists, is vital to evaluate the business's readiness, optimize its value, and address potential risks, thus guiding the owner toward a successful and well-informed transition. This approach not only preserves the business's legacy but also safeguards the family's financial well-being and paves the way for a secure future.
- Strategic Planning and Family Alignment: The panel brings together business consultants, tax advisors, attorneys, and other experts to develop/dissect a comprehensive strategic plan for the future of the family-owned business. This plan should address the owner's financial and legacy goals while fostering alignment among family members. It is essential to ensure that everyone's interests and aspirations are considered.
- Business Valuation and Optimization: The panel's experts assess the company's readiness for sale or transition, analyzing factors such as financial performance, human capital, customer base, and market attractiveness. They guide the owner in optimizing the business's value, making it more attractive to potential buyers or successors. This includes addressing issues related to succession planning, improving management, and diversifying the customer base.
- Exit Planning and Risk Mitigation: The panel advises on the importance of a well-structured exit plan, which may include transitioning the business to the next generation, selling to management or external buyers, or a combination of these. Additionally, the panel identifies potential risks, both financial and operational, and devises strategies to mitigate them.
About the Presenter:
Hear from industry experts,Mike Rudow, Wealth Advisor, Morton Wealth, and Danny Howard, CPA, Citrin Cooperman Partner.
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EXIT PLANNING IS GOOD BUSINESS STRATEGY
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