
Month: November 2016
November 14, 2016
ProSales Article on Succession Planning
In the ProSales Article “Life After LBM“ Craig Webb did a terrific job of outlining succession planning challenges facing our LBM owners and leaders.
The human tendency to have deep emotional blind spots when considering your exit after a life long, heart-rending battle, building and protecting your business, is natural. Let’s approach how your competition benefits when owners refuse to develop a solid succession plan.
Recruiting Top Talent: The stability in company direction and core values remains a key motive for top talent. If their owner is over the age of 60 without a clearly defined succession plan, we find the best 35-45 year-old talent can easily become motivated to consider another opportunity.
Acquisition Targets: The elephant in the room is far from a secret; at least not to those who benefit. The largest acquiring companies in LBM (USLBM, BFS, BMC Stock) and the Investment Bankers brokering deals, all know it, but rarely is it discussed. Once profitable and stable LBM companies frequently sell for 3x EBITDA, asset value, or less, due to a lack of succession planning. The scenario is unfortunate and common: the owner falls ill or comes to their demise and the heirs have no idea what to do with the business, many times not prepared to fill the operational and leadership void. Fearing the loss of sales talent and customer base, the business is sold in a quick process. I cannot imagine a more tragic outcome for your greatest legacy. Substantial economic opportunities come from emotionally controlled planning, or lack of, and your competitors are quick to take advantage.
Please take the time to prepare and protect your Company.
Sign Up For Updates
ARCHIVES
- January 2021
- December 2020
- November 2020
- October 2020
- September 2020
- August 2020
- July 2020
- June 2020
- May 2020
- April 2020
- March 2020
- February 2020
- January 2020
- December 2019
- November 2019
- September 2019
- July 2019
- June 2019
- May 2019
- April 2019
- March 2019
- January 2019
- December 2018
- November 2018
- October 2018
- August 2018
- July 2018
- June 2018
- May 2018
- April 2018
- March 2018
- February 2018
- January 2018
- December 2017
- October 2017
- August 2017
- July 2017
- May 2017
- February 2017
- January 2017
- November 2016
- July 2016
- May 2016
- January 2016