Business Succession

Ready to hear a reality check from other business owners?

  • Nearly three-fourths of privately held manufacturing firms in the U.S. were formed between 1960 and 1980.
  • Only about 14% have a succession plan in place for their company if they should die or become disabled.
  • Half of all business owners expect to sell their businesses to an outside buyer when the time is right.
  • At any given time, 20% of privately owned businesses are for sale and only one in four will actually be sold.

Here's what is important about these stats*. When we ask business owners when they see a major transition in the ownership of their businesses, most of them reply, "Five years." Suppose they don't start the plan today, then next year it will still be five years out and the year after that another five. Meanwhile the statistics imply that with every passing year the market for business sales will become more and more crowded.

* John H. Brown - Cash Out Move On: Get Top Dollar, and More, Selling Your Business

Every successful exit strategy requires tough questions and careful advance preparation.

  • What's the value of my business today? Is that what I think it's worth or what the marketplace would think?
  • How can I preserve the value through more effective financial and operational management?
  • How can I protect it from creditors?
  • How can I promote its value through value drivers?
  • How can I prepare for acquisition - either cash or note or other option? For a merger? For an IPO?
  • How can I manage contingencies - loss of shareholders, key people, financial resources, intellectual assets, customers?
  • How will I manage the new family asset my business becomes?

We have walked many business owners through these concerns to start the planning process and monitored progress as the plan progresses. For virtually all of them, the business represented the largest single asset in their estate which then led to integration of business and estate planning. No surprise - the commitment to planning your exit from the business mirrors your commitment to building it.

Office Location

DavisWalker, Ltd.

9100 Arboretum Parkway
Suite 260
North Chesterfield, VA 23236-3493
ph: 804.560.8082

Request Information

Please let us know how we can serve you.




News Updates

Financial and Economic Brief - August 4, 2020

• A Q2 Economic Evaluation - Now that the American Economy has gone through at least one quarter of Covid-19, we have an opportunity to glance back at the equity markets to see how they performed.

• International Monetary Fund’s Latest Update - Countries around the world share the same apprehensions about financial health of economies as well as physical health of the people.

• Top 10 Technology Trends of 2020 - The rapid growth of technology is paving the way for career growth in 10 different but connected areas.

Financial and Economic Brief - July 3, 2020

• The Trend in Wage Growth and Spending - The country’s unemployment rate has leveled off and Americans have shown remarkable resilience in the face of high unemployment numbers.

• Mortgage Rates are the Lowest in Years - For individuals and families who are looking to buy a new home, interest rates are low and expected to potentially go lower.

• Where are Oil Prices Headed? - Decades ago no American would have believed that the price of a barrel of oil would drive a wedge between OPEC oil producing nations.

Financial and Economic Brief - June 2, 2020

• Payroll Protection Program Gets Necessary Adjustments - Businesses that have secured a Payroll Protection Program loan from Uncle Sam may be looking at legislation to ease the requirements for loan forgiveness.

• What’s Ahead for Treatment or Cure of Coronavirus? - Americans are eager for one of the many drug companies to develop a vaccine for the Coronavirus.

• The Fed’s Latest Cash Infusion - The future of the US Economy has been bolstered by the efforts of the Federal Reserve Bank to smooth-out the disruptions caused by the Coronavirus.

Financial and Economic Brief - May 6, 2020

• Here are Important Social Security Changes for 2020 - For today’s retired Americans, it frequently represents a healthy amount of their monthly income.

• Did the SECURE Act Kill the Stretch IRA? - Individuals who have successfully used IRA’s as an estate tax planning tool may be trying to find new ways to leave assets to named beneficiaries in a way that minimizes the long-term effects of the estate tax.

• Warren Buffett has Sold Berkshire Hathaway’s Position in Airline Stocks - The Oracle of Omaha doesn’t always get it right (but so far his track record has been mighty impressive!)

Financial and Economic Brief - May 5, 2020

• The Real Estate Front - The Coronavirus pandemic has dramatically affected the housing market.

• Understanding the Impact of Inflation - When governments, for whatever reasons, inject huge sums of currency into an economy, repercussions will be felt at some point in the future.

• The UK is Recognizing the Benefits of Trading with the US - With the world currently reeling from the economic slowdown essentially caused by Covid-19, our friends in the UK are seeking to step up trade talks.

Financial and Economic Brief - March 3, 2020

• Potential Rate Cuts Coming - In response to the coronavirus scare, there’s a chance that the Fed could take policy back to where it was during the financial crisis of 2008.

• Britain’s Mandate for Trade Talks - Britain unveiled its mandate for trade talks with the U.S., with Prime Minister Boris Johnson vowing to drive a hard bargain in negotiations.

• Stock Market Plummets - U.S. stocks fell as fears escalated over the fast-spreading coronavirus, with Wall Street capping its worst week since the global financial crisis of 2008.