Business Transition Planning
Prepare for the next phase of your life
You've invested a lot of time and energy into making your business a success. Now it's time to start thinking about the next step—both in your life and in the life of your business. Whether you're planning to transition your business to a family member, sell to a third party, or sell to a partner, having a clearly-defined plan in place can increase the likelihood of ensuring a successful transition.
Our business transition planning platform is designed to address the multitude of financial impacts a business owner may face, or is currently managing, in anticipation of a transition from the business. BB&T's planning professionals partner with you and your business advisory team to form solutions most appropriate to your needs and values. By evaluating all the alternatives for disposition, we work to maximize the ultimate value of the business.
We begin by listening to you and considering key questions such as:
- What should my transition timeline be?
- How much capital do I need to ensure my family's financial destiny and legacy?
- To whom do I want to transfer my business?
- How do I begin the transition of my business and still maintain control?
- How do I retain valued employees, thereby ensuring their employment with the business after my transition?
- How do I protect key employees and others who have contributed to my success?
The combined planning analysis will encompass recommendations regarding the following elements:
- Personal financial needs assessment
- Evaluation of multiple sale or succession strategies
- Preserving, protecting and promoting business value
- Guidance on transferring control to successor management
- Estate, asset and wealth preservation planning
- Coordination of the implementation process and ongoing guidance
A successful transition includes the following critical components:
- Personal wealth and estate planning – Illustrating the impact of business transition options and timing on goals
- Disposition decision – Facilitating the analysis for the sale or transfer of the business and transition timeframe
- Maximizing and protecting business value – Calculating value using sound methodologies across key metrics, comparing against the industry and ensuring processes are in place to enable the desired results
- Asset protection and risk management – Safeguarding your business and personal property from future creditors or claims by having the right documents and business structure in place
- Contingency planning – Preparing a "Plan B" with appropriate legal documents and risk management programs in the event of unforeseen circumstances
- Ownership and transfer of your business interests – Identifying the skills and expertise needed from successors, formulating your exit timeline and helping to prepare family members
Simplify your increasingly complex financial life
As your responsibilities increase, so do the intricacies of your financial needs. Peace of mind comes from knowing a dedicated team of professionals is working together to keep you on the right path—your path.
Our four-step approach begins with in-depth conversations and results in an integrated action plan that grows and matures as your financial needs and objectives change.
Step 1: Assess your needs
We invest the time up front to fully understand your current situation, goals for the future, the people and causes you care about, and how you want to use your assets.
Step 2: Structure your plan
Based on the information you share, we review your goals, resources, priorities and areas of focus to create a highly customized, fully integrated financial strategy as distinctive as you.
Step 3: Assemble your team
You're supported by a dedicated team of BB&T specialists representing each area of financial expertise. Each member brings specialized knowledge and insights to optimize resources and enhance outcomes.
Step 4: Monitor your results
As part of our long-term commitment to you, we continuously monitor your plan's performance, recommend adjustments as needed, and meet with you on a regular basis.
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BB&T Perspectives shares financial, leadership and lifestyle perspectives with the hopes of enhancing our clients' lives. Learn more about the business topics our Wealth experts are discussing.
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While the economy has improved and businesses are beginning to experience growth, one of the challenges companies face today is access to the credit necessary to invest in their businesses and drive growth.
The M&A Sale Process: How Does It Work?
Business owners contemplating a sale of their company are often tempted to handle their own transaction and question why they should engage a trusted advisor to manage the deal.
How can I best determine the value of my company?
Understanding your company’s value is both an art and a science, and a team of experts can guide you along the way.
The art of valuation
When it comes to valuation, there are dozens of techniques available to scrutinize every aspect of a company’s historical financial performance. But even the most detailed analysis only yields a range of potential values—values driven by a host of assumptions.
In other words, no matter how impressive a company has been to date, getting one’s company valued at the higher end of the range depends more on the “art” of convincing one or more buyers that the company has more future potential than its past reflects.
The value of experts
Bringing together a select group of attentive and eager buyers is the trademark of a superior mergers and acquisitions (M&A) advisor.
The advisor and the team of bankers should be experts in their respective industries, each with the ability to bring together a diverse universe of buyers. The best potential buyers are ones who fit the goals and personality of the target company and would be willing to pay a premium if they saw real value.
The purpose of this highly focused process is to replace the commodity-driven price-value adage that “something is worth what someone else will pay” with a more proactive approach that “something is worth what the most informed buyer believes it could be worth.” To wit, Benjamin Graham, the father of company valuations, cautioned against impetuous bargain hunters: “Price is what you pay; value is what you get.”
The science of valuation
To be clear, there’s no art without the science, and it’s imperative for a company to have all of its financials (both historical and forecast) in pristine condition before the process begins. Even the smallest error can cause buyers to wonder what else might be wrong.
Because of this potential, an M&A professional should invest a tremendous amount of presale effort in not only ensuring that a company’s financials correctly tie, but also in looking for anomalous financial events that could distract from a proper valuation.
The emotion of a sale
There’s a tremendous amount of emotion involved in the sale of a private company—especially if it’s a family-run business. It’s common for this sentiment to distract sellers from achieving the most important goal of extracting the highest possible value for their life’s work. Recognizing this helps sellers further appreciate the value of an expert team. In these cases, it's often beneficial to have a financial and business transition plan in place, which can show the seller and their family that their personal and/or business legacy goals can be achieved to provide a greater level of comfort.
The bottom line
By using the expertise of those who can correctly position a company to a multitude of different buyer types, the private entrepreneur can take comfort in knowing his or her company will be shown to those who know both the price and value of the enterprise.
Your BB&T Wealth advisor will help you create a comprehensive, strategic plan to integrate and coordinate your banking, credit, investments, risk management, and trust and estate planning services.
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