Mike Moore, Corporate Practice Area co-chair, had his “Transitioning Your Business: What Happens Without an Exit Plan?” article published by Rochester Business Journal. The article examines the financial and operational risks business owners face when they fail to establish a formal succession or sale plan before they need one.
The article begins with a cautionary real-world scenario involving a regional construction business owner who suffered a sudden health crisis in his mid-70s and didn’t have a succession plan in place. With no designated leader and family members thrust into unfamiliar operational roles, his multimillion-dollar business quickly fell into chaos, and a potential premium-value transaction devolved into a rescue sale at significantly reduced terms.
The example underscores Mike’s point that business exits are not a matter of if, but how and when—and that advance planning is what separates a value-maximizing transition from a crisis.
The article outlines the key questions every business owner should address with their legal, accounting, and financial advisers, including leadership succession, ownership transfer mechanisms such as ESOPs, and more.
“Succession planning is not morbid or a concession; it’s a responsible, caring, value-preserving act that protects your family, your employees and the value you’ve built,” Mike wrote. “…Your business may be your most valuable asset, so treat it as such. Build a plan that answers the tough questions before life forces you to.”
Rochester Business Journal subscribers can read the full article here.