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“And if we don’t get this right, there’s going to be a massive amount of wealth destruction,” which has a “huge ripple down effect” on the economy, he adds. “We dig in a little bit more about understanding how prepared they are on a personal, financial, and business level to actually go to market and successfully sell – ideally for top dollar.”
It takes about three months to gather information, three to six months to formulate a plan, and up to two years to prepare the owner and business for a sale for the best price or an ownership transition, Mr. Langford says. The current chief executive officer – the matriarch or patriarch – may be reluctant to give up that power and may want to chair the board to keep a hand in the business. Also, it needs to be ensured the next generation wants and has the skills to take over the company or remain as owners with a professional management team.