Keep It or Leave It

By: Champ Rawls | 4,941 Reads | 1 Shares

Keep It or Leave It

%3Cp%3EWhen+considering+your+%22What%27s+next%3F%2C%22+in+many+cases%2C+an+external+buy%2Fsell+is+the+best+and+only+option%3B+no+successors+are+available%2C+the+deal+is+just+too+good+to+be+true%2C+or+the+grind+has+done+you+in.+In+the+same+amount+of+cases%2C+however%2C+working+toward+an+internal+buy-sell+can+provide+many+of+the+same+benefits+of+economic+prosperity+and+many+alternative+benefits+including+those+that+are+intrinsic%2C+providing+opportunities+to+loyal+key+managers%2C+qualified+family%2C+and+preserving+the+culture+you+worked+hard+to+create.%3C%2Fp%3E%0D%0A%3Cp%3EAs+anyone+who+has+gone+through+a+purchase+or+sale+of+a+business+unit+%28brand+or+territory%29+knows%2C+it+is+hard+work%21+Pursuing+an+internal+buy%2Fsell+often+is+harder+and+does+not+come+without+its+challenges+and+requires+answering+many+questions%3A%3C%2Fp%3E%0D%0A%3Cul%3E%0D%0A%3Cli%3EAre+there+developed+leaders+or+a+successor+in+line+who+are+willing%2C+capable%2C+and+ready+to+take+the+reins%3F+If+not%2C+what+steps+need+to+be+taken+to+coach+them+up%3F%3C%2Fli%3E%0D%0A%3Cli%3EUntil+they+are+ready%2C+do+you+have+a+%22succession+bridge%2C%22+or+a+trusted+partner+or+very+special+key+employee+who+has+your+best+interest+at+heart%2C+available+to+lean+on+and+mentor+your+successor+so+you+can+get+out+of+the+way.%3C%2Fli%3E%0D%0A%3Cli%3EOnce+the+successor+has+been+identified%2C+how+do+you+structure+the+transition+of+leadership%2C+the+chain+of+command%2C+and+ownership%3F%3C%2Fli%3E%0D%0A%3Cli%3EAre+you+financially+independent+from+the+business%2C+so+you+aren%27t+depending+on+profits+to+support+your+lifestyle%3F%3C%2Fli%3E%0D%0A%3Cli%3EDo+you+feel+confident+you+will+receive+the+value+you+deserve+while+also+providing+an+opportunity+in+ownership+to+your+successor%3F%3C%2Fli%3E%0D%0A%3Cli%3EWhat+covenants+need+to+be+developed%2C+agreed+upon%2C+and+put+into+place+between+you+and+your+successor+while+you+are+dependent+on+them+to+operate+the+store%2C+but+they+are+responsible+for+servicing+a+note+to+you.%3C%2Fli%3E%0D%0A%3Cli%3EWhat+is+the+ultimate+exit+strategy+that+separates+you+from+the+day-to-day+realities+of+the+business%3F%3C%2Fli%3E%0D%0A%3Cli%3EIf+there+are+no+family+successors%2C+who+do+you+identify+internally+to+become+partners+with+to+ensure+they+maintain+the+culture+you+have+worked+hard+to+develop+into+the+future%3F%3C%2Fli%3E%0D%0A%3C%2Ful%3E%0D%0A%3Cp%3EThese+and+many+more+are+the+questions+that+need+to+be+answered+to+feel+confident+you+can+proceed+with+an+internal+buy%2Fsell.%3C%2Fp%3E%0D%0A%3Cp%3EBut+many+of+you+may+be+thinking%3B+%22why+bother%3F%22+Many+of+these+questions+seem+like+topics+you+would+rather+not+think+about+at+a+time+when+you+are+either+considering+the+future+of+your+business+or+debating+your+exit+strategy.+From+a+practical+standpoint%2C+I+could+agree.+Selling+to+the+highest+bidder%2C+taking+your+money%2C+and+being+on+your+way+has+its+advantages.+But+when+we+are+talking+about+a+business+that+you+most+likely+have+spent+decades+building%2C+which+has+people+in+it+that+you+have+employed%2C+built+lives+for%2C+and+invited+into+your+family%2C+and+have+the+opportunity+to+see+the+next+generation+of+successors+succeed+in+ways+you+have%2C+why+would+you+not+consider+the+very+opportunity+to+seek+an+internal+buy%2Fsell.%3C%2Fp%3E%0D%0A%3Cp%3EAnd+many+of+you+may+be+asking+%22Why+work+to+stay+in+the+business%3F%22%3C%2Fp%3E%0D%0A%3Cul%3E%0D%0A%3Cli%3E%3Cstrong%3ELet%27s+start+with+legacy%3A%3C%2Fstrong%3E+If+it+means+something+to+you%2C+then+we+could+stop+here.+The+continuation+of+a+family+business+to+capable+and+committed+community-minded+successors+or+the+perpetuation+and+opportunity+you+provided+for+key+managers+to+become+owners+is+a+noble+cause+and+one+where+I+would+say+you+have+the+most+potential+invested.+In+most+cases%2C+you+have+built+the+company%2C+and+have+invested+your+blood+sweat+and+tears+into+its+success.+Ensuring+that+the+next+owner%2Foperator+keeps+many+of+the+same+people%2C+customs%2C+and+culture+is+important+to+you.+That%27s+why+an+internal+buy%2Fsell+ensures+your+legacy+continues+with+the+people+you+have+selected+to+take+over.%3C%2Fli%3E%0D%0A%3Cli%3E%3Cstrong%3EOwnership%3A%3C%2Fstrong%3E+Continuing+to+stay+involved+provides+you+the+purpose+and+economic+interest+in+business+success.+Any+form+of+a+protracted+buy%2Fsell+can+be+created+to+make+your+successors+earn+their+way+in+and+provide+a+runway+for+you+to+determine+their+ability%2C+thus+creating+a+win-win+for+both+parties.%3C%2Fli%3E%0D%0A%3Cli%3E%3Cstrong%3EOpportunity+for+family+and+long-term+employees%3A%3C%2Fstrong%3E+Providing+family+in+a+business+the+opportunity+to+grow+into+the+leaders+of+tomorrow+is+a+worthwhile+endeavor.+I+will+be+the+first+to+say%2C+it+will+be+a+challenge%2C+but+the+rewards+are+plentiful.+Continuing+the+culture+that+you+have+built+also+ensures+you+continue+to+provide+an+opportunity+to+the+long-term+employees+who+have+made+you+a+success.%3C%2Fli%3E%0D%0A%3Cli%3E%3Cstrong%3ECommunity%3A%3C%2Fstrong%3E+You+have+given+to+the+local+charities%2C+supported+the+youth+teams%2C+and+raised+money+for+charities.+Staying+involved+and+in+business+ensures+you+can+continue+to+support+and+be+a+part+of+the+communities+you+live+in+and+do+business.%3C%2Fli%3E%0D%0A%3C%2Ful%3E%0D%0A%3Cp%3EThese+and+many+more+are+the+reasons+to+consider+when+asking+yourself%2C+%22Why+work+towards+an+internal+buy%2Fsell+versus+%28transition+of+ownership%29+versus+selling+to+a+third+party%3F%22+While+your+friends+may+be+selling%2C+or+you%27re+getting+the+calls+that+go+around+the+industry%2C+I+suggest+you+consider+the+above+when+looking+at+your+situation+to+determine+whether+the+right+course+of+action+is+an+external+or+internal+buy%2Fsell.+Each+will+have+its+merits+and+challenges+but+only+one+keeps+you+in+the+game.%3C%2Fp%3E%0D%0A%3Cp+style%3D%22border-top%3A+3px+solid+%23DDDDDD%3B%22%3E%26nbsp%3B%3Cem%3EBeing+a+part+of+his+own+family%27s+business%2C+%3Cstrong%3EChamp%3C%2Fstrong%3E+has+a+unique+insight+into+the+difficulties%2C+challenges+and+triumphs+families+face+when+combining+family+and+business.+%3Cstrong%3EChamp+Rawls%3C%2Fstrong%3E+has+been+officially+associated+with+The+Rawls+Group+since+2012%2C+although+it+could+be+said+he+become+a+part+of+the+team+in+1984%2C+when+he+was+born+into+the+family+business.+For+more+information+visit+%3Ca+href%3D%22http%3A%2F%2Fwww.rawlsgroup.com%22+target%3D%22_blank%22+rel%3D%22noopener%22%3Ewww.rawlsgroup.com%3C%2Fa%3E.%3C%2Fem%3E%3C%2Fp%3E

Published: September 18th, 2018