Phil facilitated [bringing in our new ownership team]. He helped me with it from start to finish, facilitated the entire process… and not only that, he took on roles himself. He brought us the right people at the right time to help. — Ewen Morrison, EMW Industrial

Succession planning for owner/managers deals with both ownership and management, or “The Succession Two Step™” as we call it. Dealing with both at the same time is very difficult. You can start with either one, management or ownership, and the process will be smoother, easier and faster.

We recommend starting with management because this can create more freedom for the owner/manager. If an owner has total freedom and doesn’t need to work in the business, then the business is just like other investments that generate a positive return.

We can help you position your business for succession or sale or…if it’s highly profitable and you don’t have to be there, maybe you will want to keep it!

Some of our services:

• Management development and succession.
• Ownership succession including management buy-ins or buy-outs, sale to strategic buyers, or transition to equity investors.

Seven out of ten businesses will transition ownership in the next decade due to demographics and the retiring of baby boomers in North America. This surge of businesses for sale, combined with fewer buyers, a weak economy and tighter lending by fewer banks, has the potential to cause a succession disaster. Starting now and building up the value of your business can position you at the top of all businesses for sale or even reduce your need to sell the business at all.

Succession planning is a two-step process that requires the separation of ownership and management. Symco & Co. has stated publicly that the worst position in business is ‘owner/manager’ because it conflicts with itself. The owner has long-term objectives to preserve resources and provide stable cash flows while the manager has short-term objectives to leverage resources in order to maximize profits. These roles are very difficult, if not impossible, to perform at the same time, especially by the same person.

Separating ownership from management is a critical step for the owner/manager or privately held small and medium business that will dramatically accelerate business performance and value. Even sports teams separate the roles of ownership, management and players in order to have everyone focus on their strengths and maximize performance.

It’s not about how many jobs you can do; it’s about which job(s) you can do the best. We can help you transition yourself to your ideal future while maximizing the value of your company.

Our financial worth has increased substantially. Phil showed us how to set up a holding company and a family trust. We didn’t know that those were options. Our accountant was good, but he only ever directly answered our questions. He never made suggestions, and that’s what Phil does for us. — Teresa Hensrud, Industrial Scale

Businesses that are structured for long-term wealth creation and protection can have a significant positive impact on your financial wealth and quality of life.

Minimizing taxes in the short-term can actually hurt your long-term wealth creation capacity.

We work closely with you, your family and your professional advisors to:

• Create organizational structures that generate long-term wealth and value for the shareholders.
• Balance short-term tax saving strategies with long-term flexibility for succession and ownership.
• Provide future ownership opportunities for key employees and family members.
• Deal proactively with entitlement and other emotional road blocks that can jeopardize family wealth.

Accountants and lawyers have several methods to minimize risk and minimize tax. However, these may constrict growth and reduce wealth. The best question to ask your advisors is “How do I maximize my wealth?” Symco & Co. recommends that you consider the potential impact and benefits of setting up separate operating companies, holding companies and family trusts.

These structures, when used properly, can save hundreds of thousands, even millions, in taxes. We work closely with our clients and their professional advisors to develop and implement effective and efficient structures that are properly balanced to meet our clients’ personal needs and long-term business objectives.

Specific structures that may be beneficial to your financial position include:

• Operating companies.
• Holding companies.
• Family trust.
• Various insurance products.

Optimal business structures require a multi-disciplined and balanced approach among your business advisors. We often act as the quarter-back to get your advisors in the same room at the same time…sometimes this is the first time this has ever happened!

If Phil wasn’t working with us, I think we would still be in the early stages of the deal. But, instead he accelerated the process. — Lorne Schnell, Morsky Industrial

Some of Symco & Co.’s services for privately-held mergers, acquisitions or divestitures include:

• Confidential evaluation of business transitions including purchase or sale.
• Structuring a business for purchase, succession, transition or sale.
• Identifying value drivers and understanding the value of a business or division.
• Preparing key marketing documents that position your business for sale.
• Performing due diligence on acquisition targets.
• Seeking strategic buyers such as competitors, customers or consolidators.
• Seeking non-strategic buyers such as employees, managers or family members.
• Negotiating with potential purchasers or sellers and their professional advisors.
• Providing a collaborative professional team that specializes in all aspects of a transaction including accounting, tax, legal, financing and insurance.
• Seeking debt and/or equity financing support for your transaction, either buying or selling.

Most business owners only sell their business once in their lifetime. This is a difficult and emotionally challenging process that is further complicated with multiple financial and planning decisions.

Business value depends on several internal factors including controllable factors such as revenue and profit growth, cash flow, management team, customer diversification, competitive advantages, and strategic and operational factors.

External factors that are less controllable are interest rates, currency fluctuations, economic and political conditions, government regulations, technological developments and competitive actions.

The biggest factor affecting business value is whether the owner needs to be there all the time or if the business can run independently. A business with an absentee owner, a management team in place, and stable or growing cash flows, will be worth significantly more than a business with higher profits but which needs the owner’s constant hand-holding.

The best position is when your business value is at its highest, you have freedom from your time commitments to the business, you are generating surplus cash flow, and you are positioned to find strategic buyers who will compete to purchase your business.

Small and medium businesses can learn a valuable lesson from large, and especially public, companies that have clear fiduciary duties to protect corporate and shareholder value by practicing risk management.

Business owners face unique risks. For example, the business value may be tied directly to the owner’s continued activity in the business, resulting in high personal goodwill but low value to a potential purchaser and therefore reduced family wealth. Symco & Co. helps help you anticipate, manage, and reduce the unique risks endemic to your type of business.