Developing our client's succession plan unlocked a new relationship with their business partner
Industry
Succession & Exit Planning
Challenge
A client and their business partner were nearing retirement and weren't sure if they were on track for their desired exit value with no succession plan in place.
Results
BLBB turned a complex, high-stakes succession planning challenge into a data-driven, actionable strategy.
“RISR helped bring clarity and alignment to a complex succession planning discussion. More importantly, it gave the owners confidence, strengthening both their business strategy and our advisory relationship.”
Ed Barnes
Financial Advisor @ BLBB Advisors
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About BLBB
Founded in 1964, BLBB is an independent, employee-owned, fee-only, multi-custodial financial advisory firm providing fiduciary advice, planning, and investment management services to individuals and families, endowments, and business owners.
The Challenge
A long-time client of BLBB co-owns a business specialized in roofing construction.
After the client and their business partner invited in a new, younger partner, BLBB asked a key question: What do you want to do with the business long-term?
The two main co-owners were nearing retirement and weren't sure if they were on track for their desired exit value.
They lacked clarity on current business valuation, the goal valuation needed to fund their retirement, and the growth path required to reach that goal.
Separate from their personal financial needs, business continuity was a concern. Though a younger minority owner was becoming involved, the roles and responsibilities for the next generation of leadership were still undefined.
The ownership team needed guidance through key conversations to align a plan with their goals.
The Solution
The BLBB team engaged the team of owners in a meaningful discussion, bringing clarity and deeper alignment personally and to the future of the business.
Using RISR, BLBB estimated the business' current value and led the owner through an exercise to identify how much funding they would need from an exit to fund their life goals and retire.
RISR's goal valuation report showed the client the target valuation and the business growth path required to reach it.
These conversations led to further next generation leadership planning with the group to discuss what a succession plan might look like in the future.
With RISR, BLBB turned a complex, high-stakes succession planning challenge into a data-driven, actionable strategy.
The Results
BLBB brought clarity to their long-time client, aligned the business leaders, and unlocked a new relationship with the new owner.
BLBB identified what the business needed to be worth to fund the client's retirement plan
BLBB delivered a clear set of business growth goals to reach the client's goal valuation
Business continuity planning was strengthened, aligning all owners
BLBB now manages the business 401Ks and retirement plans
BLBB unlocked a new relationship with the minority owner