An underserved portion of the family-owned SMB market is helping owners understand & make good choices about succession. If there's an obvious successor in the family, great, but oftentimes there isn't.
In those cases, many owners default to either selling or shutting down.
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In those cases, many owners default to either selling or shutting down.
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Other options that are often ignored include selling to an ESOP, hiring a professional manager, thoughtfully grooming someone (apprenticeship), or even buying another business and having that firm's leadership run both companies.
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Those are harder choices to understand and evaluate for many families, which is why competent advisors could be really valuable. I'm not sure there's an easy way for those advisors to get connected to and build relationships with companies, but there's a clear need.
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I know many owners who "settle" by selling, when they'd really prefer to have continuity, but just don't know how best to achieve it, and it is a complex problem.
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And, it is especially disheartening to talk to people that have run into PE firms or other pro buyers and see how deflated the owners come away.
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"All they wanted to talk about was EBITDA, growth, margins, when what I care about is that they value my journey and respect the way I do business and treat employees, customers, and vendors. The way we do business matters as much as the money."
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If you're a buyer of these firms, respecting this viewpoint goes a long way in building trust and rapport - and you get to know great folks!
🧵 inspired by a couple of friends who have helped their families with these issues and talked to me about their challenges.
/end
🧵 inspired by a couple of friends who have helped their families with these issues and talked to me about their challenges.
/end
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