Business Succession Planning
Decide Your Essential First Steps In Selling Your Business
At Annex Wealth Management, we know that 95% of business owners agree they need a plan[i] — yet most don’t have one. We combine in-house expertise with proven strategies to maximize value, minimize taxes, and align your exit with your personal, family, and lifestyle goals.
Why Most Owners Are Behind *
%
Agree They Need a Plan
%
Have No Written Plan
%
Have No Formal Plan for After the Transfer
What Is Succession Planning?
Succession planning is the continuous process of preparing for the eventual transfer of your business. It’s about controlling the future of your company and your family’s future. Failing to plan can lead to business disruptions and even family conflict.
Featured Podcast Episode: Strategies for Business Owners Eying an Exit
In Wealthyist Episode 41, our Senior Wealth Strategist Brian Lamborne sat down with Nick Kozik of TKO Miller to share practical strategies for owners preparing to sell. Key insights included:
Start planning 1–5 years out for maximum value — focus on management succession (including an 18–24 month transition team) and data readiness with accurate financial reporting.
Clearly define your goals: maximum proceeds, growth partnership, or legacy preservation.
Build the right team early: investment banker (for $10M+ deals), transaction attorney, accountant for quality-of-earnings audits, and your wealth manager.
Understand buyer types: Private Equity (premiums for recession-resistant businesses), strategic buyers, and ESOPs for employee ownership and tax advantages.
Use market testing via competitive auctions to discover your business’s true value — multiples can reach 10–12x EBITDA in hot sectors.
Avoid common pitfalls: selling to the first buyer (loses leverage), fire sales from lack of preparation, or performance drops during the 7–9 month sale process.
Quote from the episode:
“Proactive planning over reactive exits… the right process unlocks life-changing value.”
Featured Podcast Episode: The Sell-Side Secret – How Investment Bankers Could Multiply Your Exit
In Wealthyist E49, our team explores the hidden value most owners leave behind when selling. Key insights from the episode include:
Start planning “yesterday” — ideally 3–5 years in advance. Early preparation lets you fix owner dependency, build strong teams and systems, expand regionally, and clean financials so buyers see your business’s true earnings power.
Focus on true EBITDA. Buyers pay based on normalized cash flow — adjust for owner perks and non-recurring items to reveal the real number that drives higher multiples (typically 5–10x EBITDA).
Avoid the DIY trap. The biggest competitor to a successful sale is often the owner trying to handle it alone. Specialized sell-side investment bankers quarterback the process, run competitive auctions, and screen 100–700+ prospects to maximize your outcome.
Build a transferable business. Reduce reliance on any single person (including yourself) so the company can thrive without you — a key factor in higher valuations and smoother transitions.
Post-sale realities to plan for. Expect potential rollover equity (20–30% with private equity buyers) and transition periods of 3+ years if the business isn’t fully independent.
Quote from the episode:
“The biggest competitor to a successful sale is often the owner attempting a DIY process… specialized expertise captures the value most owners miss.”
[i] *Exit Planning Institute’s 2023 National State of Owner Readiness Report https://s3.amazonaws.com/static.contentres.com/media/documents/3c618ea5-556f-4d50-9bd7-f45aab4c2a91.pdf
[i] Ibid