Sustaining success through a business transition

Before you decide to retire, you have two final responsibilities – protecting what you’ve built from unplanned disruptions and maximizing your equity when you decide to exit.

According to a 2021 survey, only about one-third of family businesses (34%) had a formal succession plan in place.

This statistic is especially concerning given that the majority of American businesses are owned by baby boomers, whose retirement horizons have them exiting their companies or professional firms within the next 10 years. The Wealth Services advisors at Synovus can partner with you to carefully develop the right strategies to help maximize your business value.

Protect your business from interruption and forced transitions

Synovus risk management specialists can estimate the financial impact of a range of risks, from natural disasters to the illness or death of a key employee (including you). Our experts use their knowledge to identify the insurance coverage designed to keep your business going through a recovery or sale.

Synovus advisors can also review and provide advice on a buy-sell plan that minimizes disruption and stress by spelling out obligations, valuation methods, funding arrangements and other expectations.

Preparing to sell

Among the most critical elements of a succession strategy is determining the fair market value and salability of your business. Businesses are illiquid, meaning they can’t be converted into cash overnight. In fact, only about 20-30% of businesses put up for sale each year ever find a buyer.1

The experienced bankers and private wealth team at Synovus can offer guidance on the value of your business, as well as market conditions and financing options. In addition, they can help you make strategic adjustments that improve the chances of a successful sale, such as paying off debt, reducing costs or improving cash flow.

Keeping it in the family

While many family businesses continue to be passed down from generation to generation, this tradition is becoming less common as younger family members choose educational and career options farther from home. In other cases, founders or earlier generations are choosing not to entrust their lifelong enterprise to relations they may see as either unwilling or unprepared to assume the responsibilities of business ownership.