One of the most meaningful parts of our business as dealmakers is the privilege of helping an entrepreneur realize his or her financial goals via monetizing all or part of their single largest asset. This is a responsibility we as an organization take seriously. The difference between an investment bank on Wall Street doing deals and The Generational Group is that we deal with real people, real families, sometimes third and fourth generations of family-owned companies, that are comprised of emotions, history, and community relations that form deep bonds.
We also understand how challenging it can be for a majority owner of a family company to convince multiple minority owners, who are usually also family members, that now is the time to exit the business and transition to new ownership. This can be tough even if the person is the sole, 100% owner of the family business; lots of other folks are affected by the decision.
For this reason, we spend quite a bit of time with our clients and usually with their spouses even if they are not legal owners ensuring that everyone is mentally and emotionally prepared for the 9-14 months it takes to close a deal and for the “roller coaster of emotions” it will be, as described by one of our clients, to actually close a transaction.
As mentioned a few weeks ago, Axial, a leading online platform that introduces capital providers with business owners and buyers, published a fantastic whitepaper entitled “The CEO’s Guide to a Successful Exit.” The strength of this whitepaper is due to the fact that it is based on input from a number of Vistage coaches. In case you are not familiar with Vistage, it is a fantastic, peer-based CEO educational group, providing local chapters with speakers who are experienced in developing and mentoring business owners.
One of the points they make in this study is how important it is to get support at home BEFORE and DURING an exit event. This is how they so aptly describe it:
Kirk Dando of Dando Advisors in Fort Collins, CO - “Be real with your family about how hard a process this will be. There are seasons when you are busier than others, and this process may go on for a year or more. You need people to support you in that. If you don’t have that support, it can be very difficult.”
Ken Proctor, a Vistage Chair in Houston, TX - “I am a firm believer that if you have problems at home, it can bleed into your work and vice versa. I mix business and home because there’s no such thing as work-life balance. It’s integration. It’s all life.”
Years ago I asked a seasoned dealmaker what the key was to his success. His answer surprised me. He said, “I am more of a marriage and family counselor than a dealmaker. My primary role in working with family-owned businesses is to keep marriages intact and family members supporting and communicating with one another over a very long, tedious, challenging process.”
This is very interesting way of looking at what our dealmakers do best: Keeping business owners, family members, spouses and other related parties focused on the exit’s long-term goals – liquidity, security, solvency and long-term financial stability. As many business owners have told me over the years, the sense of relief the day the deal closed was overwhelming but getting there, wow, what a journey!
As the Axial study concludes: Get support at home! Make sure that every person with a vested interest, whether it be directly as a partial owner or indirectly as a support person in your family, is on board with your decision. If you don’t have the cohesion, trust me, odds are way too good that you will end up not closing your transaction or even worse, damaging key relationships along the way.
The good news is that our Generational Group M&A professionals have decades of successfully dealing with family-owned businesses and their dynamics. In a sense, we have lots of marriage and family counselors on staff. If you would like to learn more about our services, you, your partner, and your spouse(s) should attend one of our exit planning workshops. We hold these regularly throughout North America. If your business qualifies you to attend, you should invest a day with us. To learn more about our services/workshops/family counseling, follow these links:
By Carl Doerksen, Director of Corporate Development at Generational Equity.
© 2016 Generational Equity, LLC. All Rights Reserved.
The information we learn from customers helps us personalize and continually improve your experience. Here are the types of information we gather.
We receive and store any information you enter on our Web site or give us in any other way. We do not sell or rent your personal information to others without your consent. We use the information we collect only for the purposes sending promotional information, enhancing the operation of our site, serving advertisements, for statistical purposes and to administer our systems. We DO NOT use third parties to provide customer service, to serve site content, to serve the advertisements you see on our site, to conduct surveys, to help administer promotional emails, or to administer drawings or contests, but reserve the right to do so in the future without advance notice.
By submitting my name electronically and clicking the “submit” button, I understand that I am providing Generational Group, Inc., Generational Equity, LLC, Generational Capital Markets, LLC, DealForce LLC, their affiliates, representatives, contractors, etc. (“Generational Group”) my telephone number, which may include a number that is wireless and/or a number that is on a national, state, or other Do Not Call registry or list. I hereby consent and agree to receive telephone calls including any autodialed and/or pre-recorded telemarketing calls and/or text messages (telemarketing) from or on behalf of Generational Group at the telephone number provided. I further consent and agree that telephone calls may be made using automated technology such as an automatic telephone dialing system, artificial or prerecorded voice, or SMS text messaging. Consent is not a condition of purchase. I further warrant and represent that any telephone number provided is not on any state or national Do Not Call Registry and that by agreeing to these terms and conditions that if any number provided is on any such registry, I hereby consent and agree to receive telemarking calls and/or communications including any phone calls, text messages, URLs, links, emails, etc. to the telephone number(s) and/or any e-mail addresses provided. I understand that by entering my name in the electronic form provided, that I am signing my name as equally as if it was my handwritten signature and that it is my intent to provide an “electronic signature” as that term is defined in state and federal law, as well as industry practices for e-commerce.
For reasons such as improving personalization of our service, we might receive information about you from other sources and add it to our account information.
Generational Group may license the use of its intellectual property including but not limited to its name, likeness, and logo for the use of affiliated offices. Such affiliated offices may not be owned, controlled, managed, supervised or staffed by employees, officers, or agents of Generational Group. Affiliated offices may be independently owned and operated. For more information about a particular office, please contact Generational Group at its office in Dallas, Texas.
This page may contain other proprietary notices and copyright information, the terms of which must be observed and followed.
Information on this web site may contain technical inaccuracies or typographical errors. Information may be changed or updated without notice. Generational Group may also make improvements and/or changes in the products and/or the programs described in this information at any time without notice.
Generational Group does not want to receive confidential or proprietary information from you through our web site. Please note that any information or material sent to Generational Group will be deemed NOT to be confidential. By sending Generational Group any information or material, you grant Generational Group an unrestricted, irrevocable license to use, reproduce, display, perform, modify, transmit and distribute those materials or information, and you also agree that Generational Group is free to use any ideas, concepts, know-how or techniques that you send us for any purpose.
Our computer system protects personal information using advanced firewall technology.
Information Generational Group publishes on the World Wide Web may contain references or cross references to other products, programs and services that are not announced or available in your country. Such references do not imply that Generational Group intends to announce such products, programs or services in your country. Consult a Generational Group representative for information regarding the products, programs and services which may be available to you.
Generational Group makes no representations whatsoever about any other web site which you may access through this one. When you access a non-Generational Group web site, please understand that it is independent from Generational Group, and that Generational Group has no control over the content on that web site. In addition, a link to a non-Generational Group web site does not mean that Generational Group endorses or accepts any responsibility for the content, or the use, of such web site. It is up to you to take precautions to ensure that whatever you select for your use is free of such items as viruses, worms, Trojan horses and other items of a destructive nature.
IN NO EVENT WILL Generational Group BE LIABLE TO ANY PARTY OR ANY DIRECT, INDIRECT, SPECIAL OR OTHER CONSEQUENTIAL DAMAGES FOR ANY USE OF THIS WEBSITE, OR ON ANY OTHER HYPERLINKED WEBSITE, INCLUDING, WITHOUT LIMITATION, ANY LOST PROFITS, BUSINESS INTERRUPTION, LOSS OF PROGRAMS OR OTHER DATA ON YOUR INFORMATION HANDLING SYSTEM OR OTHERWISE, EVEN IF WE ARE EXPRESSLY ADVISED OF THE POSSIBILITY OF SUCH DAMAGES.
Furthermore, all information contained within this website is the property of Generational Group.
Success, you have been added to our list.
it all started with a conference.
start your story today,
speak directly with one of our senior advisors +1-972-232-1121