Transition Architects has been working with a mature client with a successful business in the trades. His adult son has been involved with the business for many years and the owner considered his succession as one of his possible transition/retirement options. However, while his son is interested and has strong trade/ operational skills, he doesn’t have the financial ability to pay a reasonable amount for the business up-front and lacks the necessary management skills, especially with growing regulatory requirements and evolving safety and environmental needs.
Working closely with our client, we were able to understand his true personal needs and business goals and create a plan to find a strategic buyer that would purchase a majority of his business, instead of 100%. This strategy secures the sellers financial retirement with sufficient upfront cash and allows for synergistic management, and a continued voice in the future success of the business. The seller will be able to sell or gift his minority ownership of the company to his son in the future.
We have located an ideal strategic buyer. All parties are incredibly pleased, and the Buyer’s Bank has evaluated the transaction as very low risk since the seller is remaining with the company for a few more years. This transaction is closing shortly!