How to Align Succession Plans with Business Objectives

In 2012, I ran what became Pittsburgh's fastest-growing company. 9 years later, I led a management buyout. And we later took on a private equity partner. Here are 4 key components that ensure post-acquisition success: I recently joined David Rodnitzky on The Agentic Shift Podcast to unpack my story. In 2005, I leaped from computer science to the 'dark side' - sales and marketing. Fast forward to 2010, when my job got outsourced, we wanted to ensure that NEVER happened again. That's how Level Agency was born with Thomas Donohoe and Patrick Van Gorder. Our mission? To build the agency we always wanted to work with and the company we always wanted to work for. In 2012, I jumped in to run operations, focusing on performance marketing in select verticals. The journey has been wild - spinning off two divisions, a management buyout in 2021, a major private equity partnership in 2022, and our first add-on acquisition 5 months ago. It's been a masterclass in succession planning, investing in growth post-acquisition, and much more. Here's the breakdown: 1️⃣ Building Around the CEO/Founder We built a strong team around the owner(s), ensuring the company's success wasn't tied to one person. If you're going to scale, you can’t just rely on a handful of people. It dramatically boosted our value to potential buyers. 2️⃣ Succession Planning We established succession plans for every key role, preparing for 'what ifs' – like if someone won the lottery. That means being humble enough to recognize that even as a CEO, you're replaceable. A great test for this: force a leader to take a two-week vacation and see what breaks. This avoids the Spider-Man syndrome, where one person holds everything together. 3️⃣ Investing in Growth Post-Acquisition Post-acquisition doesn't mean hitting the brakes. With our private equity partners, we kept our foot on the gas, investing in new strategies and acquiring other businesses. This proactive approach has been key in scaling our business further. 4️⃣ Choosing the Right Financial Partner Our private equity partner, Dubin Clark & Company, Inc., brought more than just money to the table. They're here for us during the rough patches and the winning streaks, offering both financial and operational wisdom. They've surrounded our team with experts and helped us hone our strategy. That kind of support is priceless for the long term. Want to set yourself up for post-acquisition success? Give this episode a listen. It's a roadmap for any aspiring leader in the digital space. 🎧 Tune in to The Agentic Shift Podcast https://lnkd.in/g2dkyKTp for the full story. P.S. If you want to learn about AI, Agency growth, leadership and more, follow me so you never miss a post!

"My business is my retirement." You realize it's worthless right? Less than 1/3 of businesses ever sell. And you have NO succession plan. Yet you think someone will magically walk in the door with a check one day? Harsh truth: → Your business might be your life's work. → But to everyone else, it's just another asset. Your business is only worth what someone will stroke a check for it. → The market's flooded with businesses. → Buyers want turnkey opportunities. So, what's your REAL game plan? 1. Get clarity on the valuation Consider doing it like this: → 3-5 years of tax returns → Use a discounted cash flow model → Compare this to a multiple of EBIDTA This is the first thing we do for our business owner clients. We need to understand the true enterprise value and how it fits into the plan. 2. Build a succession plan → Groom a family member → Identify a key employee → Prepare for a sale You don't need to be dead-set on one of these. But you should have an idea in mind for at least one of them. 3. Assemble your dream team You can't go at this alone. Everyone you might need: → Exit planner → Accounting firm → Financial planner → Business attorney → Insurance advisor → Investment banker → Estate planning attorney Some of these roles can be done by 1 person. For example, we often play Exit and Financial planner, plus insurance advisor for our clients. The key is that they are all on the same page. 4. Diversify your retirement portfolio Your business can be a part of your retirement plan. But it shouldn't be the whole plan. Consider investing in: → Other businesses → Real estate → Stocks You need to acknowledge the risk that your business may not sell for what you think. All this to say... I understand where you are at. You've worked SO hard for your family. This business only proves that. But the stress is mounting. Your kids are never getting younger. You don't want to miss another soccer game. And you need a way out. You've always thought about planning. Now is the time. Need help figuring this out? Let's talk. My team has all the resources behind us to help you exit with clarity.

I have been helping a client with succession planning for the past three years and I tell you from experience, it's a process! Succession Planning is a business strategy that ensures operations continue smoothly after the leader transitions out of the business. So even if you're transitioning leadership to your children, give yourself five years to fully plan and prepare for it. Have a team to help you (including a corporate lawyer, financial advisor, CPA, succession planning advisor, valuation specialist, HR consultant). If you're thinking about exiting your business, here are some things to consider from a financial perspective: 1. The valuation of your business: a financial expert will assess your assets, liabilities, cash flow and potential for future earnings. 2. Current fiscal health of the business: The financial performance of the business directly impacts its valuation. Knowing fiscal health helps successors understand the true value of the business. 3. Your money team: Are the right accounting, financial and HR professionals in place to support the business even after you exit? 4. Ensure you have enough funds: Make sure you can cover the costs of exiting and retirement 5. Documentation - Make sure you have records of all financial policies, procedures and authorizations. 6. And, DEFINITELY have a fractional CFO on your leadership team to manage all of this as you move through this monumental moment in your life. Ready to talk with a CFO about succession planning? Schedule a financial consult at the link in the comments. . . #business #finance #smallbusiness #money

Up to 83% of Baby Boomer Businesses are expected to sell or change hands in the next 5 years. What I'm hearing in conversations with these successful business owners is a great reminder that people still matter. In preparing for an exit strategy, making sure that the business goes to someone that will take care of the people and the legacy that they've worked hard to build is a top priority. Here Are 5 Way's Infinite CXO Can Help Your Business Plan & Execute A Prosperous Transition #1. Start Planning Now - to maximize your valuation and shape your desired outcome, it may take 3 to 5 years. Valuable opportunities to maximize your return need #exitplanning. Whether selling to an outside stakeholder, looking for a new Owner/Operator or handing it over to your family, planning is a winning formula. #2. Guide Your Successor - be flexible in your thinking about your extended role. The new owner or even someone internally will find immense value in your institutional knowledge. I'm seeing a lot of family handoffs where alignment and flexibility need to be laid out. #3. Don't Stop Growing - both the business and yourself. Companies are most attractive when there is a visible roadmap of growth. I recently heard a story of a 3rd Gen HVAC owner who let go of his employees to lower the expense on the P&L and show more profit. His business was now worth $0. #4. Culture Matters - to the value of your business. People just aren't an asset, their belief in your mission, vision and core values are. I recently had lunch with an owner of a Venture Capital Firm and he said the greatest mistake that VC partners made in the last 5 years was to not consider Culture as the pathway to sustainable growth. #5. Find a Partner - to be your guide. One that can not just help you sell but help you grow while you sell. Infinite CXO is helping companies just like yours strategize, plan and execute a prosperous exit. We aren't the only one's that can help you, there are other great companies out there. However it is our passion to Empower Hidden Potential. Make 2024 the year you build your #exitstrategy.