Succession Planning for Your Small Business

Unexpected changes can happen at any moment, and having an exit strategy for your business is essential to avoid losing out on potential value. After my own journey of unexpectedly relocating and having to close my design agency, leaving money on the table, I realized the importance of having a plan. In this episode, I’m joined by Jonathan Baker, who offers valuable insights on how you can maximize the value of your business when it’s time to move on. Together, we explore options beyond simply selling, such as revenue-sharing agreements and the concept of an “earn-out,” ensuring you’re equipped with strategies to safeguard your business’s worth.

Selling a business comes with its own set of challenges, distinct from selling tangible assets. With Jonathan’s expertise, we explore three primary mechanisms—earn-outs, seller notes, and cash at close—each offering different levels of risk for buyers and sellers. The role of personal relationships and brand value is pivotal in this process, and we discuss how these elements can be both an asset and a challenge. Additionally, we touch on the nuances of mergers and acquisitions, emphasizing that having a well-thought-out exit plan is key to a smooth transition.