PNC is committed to helping you grow, transition and protect the business you have built.
As you begin the journey toward a business transition, are you inundated with well-intentioned advice? Who should you turn to? Your attorney? Your accountant? A family member? Each may see your situation through a different, narrow lens, which may produce contradictory guidance.
Here are five questions to help you get started:
How should I transition my business?
It’s a good idea to carefully weigh the benefits of an internal (keep) vs. external (sell) transition and determine how that decision impacts your financial and personal planning objectives. Let us help you develop a Keep vs. Sell “financial snapshot” for each option.
When should I transition my business?
We recommend that you start planning five years ahead. You’ll want to consider your competitive position, the attractiveness of your business and whether your business is ready to be transitioned. You’ll also want to take into account the goals of your family and other shareholders, particularly the timing of your exit on your terms.
What is the value of my business?
You need to know the value of the business regardless of your ownership transition decision (keep or sell). Publicly available information, networking, personal contacts, investment banking and valuation professionals can help you explore how other companies in your industry are valued. You may be able to identify not only the value, in case of a sale scenario, but also the terms of the deal. The process may also pinpoint valuation drivers to enhance the value of your business and its competitive position.
Who should benefit from the wealth generated from my business?
First and foremost, you need to make sure you have financial peace of mind and are personally ready for transition. Planning early gives you optimum control to determine who will benefit from the proceeds, whether it’s your family, a favorite charity or your employees.
How should the plan be designed and communicated to meet my objectives?
It’s not always easy. Developing a strategic plan, formulating a succession plan, creating a retirement and estate plan, and resolving conflicts among shareholders or family members are keys to success. However, this requires an integrated financial blueprint and coordination of a team of specialists.
Ready To Help
At PNC, we focus on combining a deeper understanding of your business and personal goals with a wide range of financial advisory resources to help provide objective and holistic advice for you, your business and your family. To learn more about how we can bring ideas, insight and solutions to you, please contact your PNC Relationship Manager, or visit pnc.com/successionplanning.