Business Succession Planning

We are a division of Garage Composites, the leading North American provider of 20 Clubs, Composite Reporting, Management Training Academies, In Dealership Training, and OEM Services.

Our role is to work with Motorcycle, Powersports, and Marine Dealerships on the development of their business succession plans and to conduct due diligence on plans they already have in place.

OWNER'S BUSINESS EXIT PLANS

  • Maximize value of Dealership
  • Maximize After-Tax Cash Flow
  • Minimize Risk (seller carried note)

KEY QUESTIONS

  • How can I motivate my managers to drive the bottom line?
  • Where can I go for guidance?
  • Who can I trust to run my business?
  • How is my family influencing my business?
  • Will I ever be able to retire?

10 Interdependent Factors in the Succession Matrix

We can assist in developing a plan for each of these areas.

1

Owner Motivation and Perspective

Owner Motivation and Perspective

The degree to which a business owner views that they have a stewardship responsibility to:

  • Employees
  • Families of employees
  • The community
  • Vendors
  • Suppliers
  • Manufacturers

Critical Questions:

  • Is the owner being viewed as the servant or being served by family, employees and vendors?
  • Is the owner willing to sacrifice for achievement of succession?
  • What will you do with your time when you are not working?
  • How much of your self-worth is tied up in running the company?
2

Personal Financial and Estate Planning

Personal Financial and Estate Planning

  • Assures you develop sufficient wealth apart from the business to empower independence.
    • What is the lifestyle you want, or able to maintain apart from the business?
    • How reliant are you on the sale of business for a successful transition?
    • How much will you need to net after taxes on the sale of the business to accomplish your goals and dreams.
    • What are your personal goals and values?
  • Coordination of Wills, Trusts, Asset Transfer and Liquidity, Estate equalizing
3

Business Structuring

Business Structuring

  • Assures that the appropriate Corporation, Partnerships, and contracts are positioned to support the various aspects of the succession strategy. (Will a change in structure help your taxes and ability to sell/transition?)

This involves:

  • Governance
  • Cash Flow
  • Liability
  • Management Control
4

Business Performance

Business Performance

  • Shareholders, Vendors, Creditors, Franchises: The business needs to be worth the ongoing support of everyone interested in seeing it through to the next generation or owner.
5

Strategic Planning

Strategic Planning

Generates detailed, long-term actionable agendas needed to implement structures, process and people who are critical to the succession of the business.

6

Leadership and Management Continuity

Leadership and Management Continuity

Addresses the reality that the success of a business is dependent on identifying, motivating and retaining the leaders who play key roles in the business.

7

Management Synergy and Team Work

Management Synergy and Team Work

Addresses that succession is dependent on the collaboration of talented and motivated people who have individual agendas for a common goal. For Example: Perpetuation the business through the next generation.

8

Successor Identification and Preparation

Successor Identification and Preparation

Addresses the challenge of identifying a family member, partner or key manager that has the capacity and commitment to build the skills necessary for the succession strategy.

9

Family Dynamics

Family Dynamics

Addresses family relationships and communication, important to the continuity of the business and harmony of the family.

10

Family Governance

Family Governance

Establishes the organizational structures, operating policies and accountability processes within the family that support the achievement of succession through next generation of ownership, whether it is within the family or not.