Business Succession Planning - About The Rawls Group


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Since 1973, The Rawls Group has been passionate about helping business owners achieve their succession goals. Nationally recognized, The Rawls Group specializes in addressing the issues that impact the continued success of a business legacy. By partnering with our clients and their other advisors, we work to develop a plan that will perpetuate the leadership, culture, performance, and relationships that are key to business success.

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  • Introduction
  • Could be family, management or a third party buyer
  • Could be family, management or a third party buyer
  • To be successful, we believe you can’t run a family like a business and you can’t run a business like a family. Business succession is dependent upon a delicate balance between potentially conflicting business and family values, and we are driven to encourage the pursuit of the balance needed for Succession Successsm. There is no business gain worth a family loss.
  • Planning for the continued success of a business legacy requires a well-coordinated team of highly motivated, diverse professionals to address personal and business issues, some of which are not easily talked about and typically result in long-term change.
  • Can appear to be an overwhelming topic especially when emotions begin to liven up business dynamics. However, the complexities of business succession can be converted to workable issues by understanding the interrelated factors that impact your goals. 
  • Your attitude impacts the perceptions of creditors, suppliers, vendors, franchisers, managers and employees of the business. Clarification of the owner’s goals, responsibilities, priorities and opportunities are critical to business succession. Your family, management team, and employees are looking to you for leadership.
  • Have you developed sufficient independent wealth outside of the business so you can exit your business?Does the next generation have good relationships with your lending institutions for future capital and guaranteeing debt? Is your business structured properly to take the most advantage for gifting and tax write offs? Is business performance optimized to ensure your business can handle a predictable dip in profitability during the transfer of the business?
  • We understand that interactions between people you care about can be overwhelming and often put on the “backburner”.  As succession specialist, we are dedicated and highly experience in facilitating these difficult but necessary discussions.
  • Consider the following:Who are your key managers? Are they working together or playing “turf” ball to meet their personal objectives instead of the company’s?Can business operations continue running without you being the one to hold everything together? Have you identified successors for each of your key leadership positions? Do you have a process for properly training family interested in your business and integrating them into your management team?Do you have the right people in the right roles that creates a strong team that compliments each other’s strengths and weaknesses?
  • Our three phase approach is designed to give you full control of the process. At the completion of each phase, we provide you a detailed presentation with observations for you to review and determine if you would like to proceed with the next developmental phase of your plan.
  • This initial phase provides a review to confirm and/or determine your goals and existing circumstances. The Phase I process consists of data gathering and personal interviews followed by a presentation reflecting our analysis. Our Phase I presentation provides observations regarding possible land mines and undeveloped opportunities that can impact the achievement of your succession planning goals.
  • A Succession Plan Implementation Checklist is developed to create an organized activity schedule for everyone involved in your planning. We supervise and coordinate the efforts of the various members of the succession planning team, including your attorney, accountant, other advisors and family.
  • We provide a proactive annual review of your succession plan and follow-up with the planning team for needed updates and enhancements. This service includes easy-to-read planning activity reviews, reports on investment portfolios, retirement plans, gifting programs, management and successor training, or any special project that may arise due to your unique circumstances.
  • Could be family, management or a third party buyer
  • Could be family, management or a third party buyer
  • Classically, an evaluation of succession planning circumstances involves considerable time, money, and energy, while confronting uncomfortable issues.
  • Classically, an evaluation of succession planning circumstances involves considerable time, money, and energy, while confronting uncomfortable issues.
  • Classically, an evaluation of succession planning circumstances involves considerable time, money, and energy, while confronting uncomfortable issues.
  • Business Succession Planning - About The Rawls Group

    1. 1.
    2. 2. Presentation Overview<br /><ul><li>About The Rawls Group
    3. 3. Our Philosophy
    4. 4. Our Process
    5. 5. Succession Planning Benefits
    6. 6. Frequently Asked Business Succession Questions
    7. 7. Business Succession Resources
    8. 8. Testimonials </li></li></ul><li>
    9. 9. About The Rawls Group<br />
    10. 10. Succession Specialists Since 1973<br />Nationally recognized, we specialize in addressing issues that impact the continued success of business legacies.<br /> The Rawls Group has partnered with over 500 “family owned” businesses to achieve their succession planning goals. <br />
    11. 11. Partner Advisors<br />By partnering with our clients and their other advisors, we work to develop a plan that will perpetuate the leadership, culture, performance, and relationships that are key to business success.<br />
    12. 12. Our Mission<br />The Rawls Group’s mission is to preserve the business by protecting the continuity of the business, not just the individual.<br />We work for the benefit of a total family or partnership;<br /> we will not represent fractional interests. <br />
    13. 13. Our Role<br />Our specialists work in a “quarterback” role with you, your management team and your advisors to obtain your succession goals.<br />Establish plan to achieve your succession goals<br />Provide tools to enhance teamwork, problem solving and accountability<br />We solicit the involvement other advisors on the succession planning team and facilitate this team initiative.<br />
    14. 14. Time-Tested Experience<br />Founded in 1973<br />Variety of industry specialties:<br />Auto<br />Beverage Distributors<br />Banking & Credit Data<br />Construction & Manufacturing<br />Marine <br />Hospitality<br />Real Estate<br />Food Manufacturing & Distribution<br />Franchise<br />Headquarters in Orlando, Florida<br />
    15. 15. The Rawls Group - 2 Companies – 1 Mission<br />Specifically directed to family resource protection, key manager retention, wealth management, exit strategies, equitable asset distribution and minimizing the hazards of estate administration. <br /><br />Specifically directed to training family principals, successors, and key personnel in the critical factors of business succession. FBRC's goal is to improve the probability of succession by enhancing understanding of the critical policies, procedures and competencies that are fundamental to Succession Success.<br /><br />
    16. 16. Our Definition of Business Succession<br /><ul><li>The continuation of success through the next generation of owners and managers
    17. 17. Preparation for the continuation of success in light of inevitable, probable and possible contingencies</li></li></ul><li>Our Philosophy<br />
    18. 18. “Family Business” Redefined<br />The Rawls Group believes a "family business" is one where two or more people are gathered together for reasons other than money. Bloodline or not, you truly care about the welfare of each of your partners, managers, employees, and their families. <br />
    19. 19. Many Factors Make the Whole<br />Business succession is contingent upon multiple interdependent factors.<br />Failure to address even one single factor can greatly affect the other factors, thus compromising the continuity of your business legacy. <br />
    20. 20. Succession Planning Builds Value<br /><ul><li>An ongoing process of improvement and preparation for contingencies.
    21. 21. Addresses profitability and success within a business.
    22. 22. Positions you to be in control of your disposition decision (keep or sell). </li></ul>Creditors, franchisors, vendors, employees and potential buyers will want to know that your company is prepared for the future. <br />
    23. 23. An Ongoing Process, Not a Project<br />Feelings, Finances, Family-partner dynamics and the Federal tax laws are ever changing. To ensure the viability of your plan, continual review, update and refinement is needed to help you stay the course to achieve succession goals.<br />Business Succession is a transitional process, not a one-time transaction. <br />
    24. 24. Succession Planning Impacts Lives<br />Business succession impacts everyone who has a vested interest in the continuity of business success. <br />Employees, Vendors, Lenders, Family and Community<br />
    25. 25. Understanding Business Succession<br />
    26. 26. Interrelated Factors<br />Achieving your business succession goals is dependent upon long-term performance criteria, and addressing critical factors impacting your family, management, and finances.<br />Family<br />Your Role<br />Finances<br />Management<br />The partner advisors of The Rawls Group are highly experienced in addressing all issues that impact the continuity of your business through the next generation. <br />
    27. 27. Interrelated Factors<br />As a business owner, you are the core of your business and the architect of your enterprise. The business ultimately takes on your values, goals, and objectives.<br />What are your values, goals, and objectives? <br />What type of legacy do you want to leave?<br />
    28. 28. Interrelated Factors<br />Most believe that they “Have it All Done” through developing wills, trusts, and buy-sell agreements. However, achieving Succession Success requires addressing multiple interdependent issues beyond basic estate planning.<br />Financial Considerations:<br /><ul><li>Exit Strategy
    29. 29. Credit Continuity
    30. 30. Wealth Development
    31. 31. Estate Planning
    32. 32. Business Structuring</li></li></ul><li>Interrelated Factors<br />Are emotions tearing your business apart?<br />Bloodline or not, you truly care about the welfare of each of your partners, managers, employees and their families.  More often than not, it is our emotions that get in the way of productivity, teamwork and Succession Success. By promoting communication and clearly defining expectations, you have increased the odds for achieving your succession dream. <br />Family Considerations<br /><ul><li>Family & Partner Dynamics
    33. 33. Family Governance</li></li></ul><li>Interrelated Factors<br />Succession Success is not simply about you getting your “ducks in a row,” it is also highly dependent upon the strength and depth of your management team. <br />Management Development:<br /><ul><li>Successor Preparation
    34. 34. Leadership Management & Continuity
    35. 35. Management Synergy & Teamwork
    36. 36. Business Performance
    37. 37. Strategic Planning</li></li></ul><li>Our Process<br />
    38. 38. 3 Phase Process<br />Goals, vision, people, values, and culture make every business situation unique. <br />To meet the specific goals of our clients, we approach business succession through a three-phase process that is dedicated to addressing the critical factors impacting your business goals.  <br />
    39. 39. Phase I<br />Succession Planning Review & Assessment<br />The Phase I goal is to help you fully understand the dynamics of your succession planning environment, and empower you to be in an informed position regarding the future of your business. <br />
    40. 40. Phase II<br />Succession Plan Development & Implementation<br /> <br />The goal of Phase II is to provide you confidence that you have implemented a state-of-the-art succession plan that will help achieve your succession goals. Phase II services are focused on the confirmation, refinement and implementation of the succession plan considerations detailed in Phase I.<br />
    41. 41. Phase III<br />Continuing Facilitation Services (CFS)<br />Our CFS Phase III services are designed to maintain the effectiveness of your succession plan by monitoring and adapting your plan to evolving issues due to the constantly changing business and family environment.<br />
    42. 42. Step by Step Process<br />
    43. 43. Step by Step Process, continued…<br />
    44. 44. Fee-Based Planning<br />To assure quality and attention to detail, The Rawls Group’s services are fee based to provide you maximum control of fee and service arrangements.<br />As an enhancement to your plan, we can facilitate your needs by providing a wide range of products and services such as Supplemental Executive Retirement Plans, life insurance, employee benefits and asset management programs.<br />
    45. 45. Powerful and Productive<br />Unsurpassed service delivery process of continuing the business through the next generation<br />Professional resources to effectively address the diversity of challenging issues impacting succession<br />
    46. 46. Succession Planning Benefits<br />
    47. 47. Succession Planning Benefits<br />Improved operating results based on a specific focus for the future and a comprehensive plan to get you there.<br />Greater family communication and harmony.<br />Next generation has an opportunity for working in the family business and is trained and prepared to achieve greater success.<br />Assurance that tax-saving opportunities are maximized based on the family’s long-term plans.<br />Individuals feel relaxed and confident they have proper exit strategies and right people in place to run the business.<br /> <br />
    48. 48. Succession Planning Benefits<br />A stronger leadership team with clear roles for both family and non-family members.<br />Credit and key vendor continuity – their confidence levels increase knowing that you have a plan.<br />A plan for servicing and retaining key customers.<br />Coordination of all advisors and information which leads to better financial and personal decisions.<br />Proper documentation in place for disposition of stock in light of any contingency (death, disability or retirement).<br />
    49. 49. Frequently Asked Business Succession Questions<br />
    50. 50. Question #1<br />How do I improve teamwork among my managers and improve profits?<br /><ul><li>Establish a Management Advisory Board
    51. 51. Leadership Enhancement & Strategic Planning</li></li></ul><li>Management Advisory Board (MAB)<br /><ul><li>Management incentive programs that motivate and retain key managers.
    52. 52. Creates a forum for accountability.
    53. 53. Collaborates talents and efforts for the success and profitability of the whole business.</li></li></ul><li>Leadership Enhancement & Strategic Planning<br /><ul><li>The outcome of the training will be leaders who demonstrate the knowledge, skills and attitudes required to make choices and decisions fundamental to success.
    54. 54. An extension of leadership training, strategic planning facilitation focuses on the alignment of business strategies, company culture, accountability and successful implementation.</li></li></ul><li>Question #2<br />How do I establish ground rules for problem solving and day-to-day interaction among employed family members, mentoring manager and owners?<br /><ul><li>Family Business Management Covenants
    55. 55. Family Business Council
    56. 56. Family Member Employment Policy & Employment Expectations</li></li></ul><li>Management Covenants<br /><ul><li>Defines expectations, measures of accountability and establishes benchmarks.
    57. 57. Outlines a set of standards for communication, problem solving and chain of command.</li></li></ul><li>Family Business Council<br /><ul><li>Family “Board of Directors” that promotes communication and proactive action within the business.
    58. 58. Regular forum for addressing family matters critical to the succession of the business.</li></li></ul><li>Family Member Employment Policy & Expectations<br /><ul><li>Defines requirements for family employment in the business.
    59. 59. Defines the expectations of a family member working within the family business.
    60. 60. Provides clarification of job performance and responsibility.
    61. 61. Promotes enthusiasm and productivity among family employees.</li></li></ul><li>Question #3<br />How can I motivate, encourage, and ensure that my successor is prepared to lead the business through the next generation?<br /><ul><li>Successor Development Curriculum
    62. 62. Board of Directors’ Facilitation</li></li></ul><li>Successor Development Curriculum<br /><ul><li>A well-defined, 5-year training curriculum that is specific to each family member’s needs and goals.</li></li></ul><li>Board of Directors Facilitation<br /><ul><li>Experienced specialists supervise your Board of Directors.
    63. 63. Promote the establishment of fundamental business practices and accountability for sustained success within the business environment.</li></li></ul><li>Question #4<br />I want to retire in x number of years, what should I do to enhance the value of my business and ensure that I won’t be dependent upon the business for my retirement? <br /><ul><li>Focus on developing revenue streams outside of the business
    64. 64. Develop time-bound, specific goals and plans to assure you achieve your succession goals
    65. 65. Assess your managers and develop retention and motivation incentives
    66. 66. Participate in strategic planning and gain buy-in of key managers
    67. 67. Develop and communicate an exit strategy</li></li></ul><li>Business Succession Resources<br />
    68. 68. Succession Planning Assessment<br />A private, efficient and economical method to diagnose issues that may impact the continued success of your business. <br />The statistically validated assessment evaluates each of the critical factors impacting business succession.<br />
    69. 69. Goal of the SPA Process<br />Provide you insight into the critical issues impacting your succession goals before engaging in a full-blown, succession planning initiative. <br /> <br />The SPA will graphically show you the areas in need of improvement, allowing you to make the critical decisions about the future of your business.<br />
    70. 70. SPA Process Benefits<br /><ul><li>A non-intrusive, private, and economical resource to understanding your current position.
    71. 71. Uncovers family and business issues that you were unaware of that are impacting business success.
    72. 72. Provides a prioritized agenda for developing a succession plan.
    73. 73. Identifies areas that need to be addressed to maximize the value of your business.
    74. 74. Provides information which will lead to better financial and personal decisions.</li></li></ul><li>SPECIAL OFFER<br />FREE SUCCESSION<br />PLANNING ASSESSMENT<br />Please click HERE to redeem your free Succession Planning Assessment. In the “Your Question” box please note the special code: FSPA09 <br />($4,500 value) <br />
    75. 75. Business Succession Resources<br />Through the real-life case examples, Rawls guides you through the steps that must be taken to protect a family business for future generations. The stories show that with diligent effort, success is within the grasp of families truly seeking answers to succession dilemmas. The solutions Rawls lays out are well destined to lead to effective win-win solutions.<br />Featured Resource:<br />Second Chapter:<br />Click Graphic<br />Preview Table of Contents - Book Review<br />Order Now<br />
    76. 76. Business Succession Resources<br />Featured Resource<br />“There is a vast difference between a successful business and business succession. Having a successful business primarily depends upon you. By and large, preparing for a successful second or third generation business begins with you, but is also dependent upon many other factors”<br />Click image to view PDF<br />
    77. 77. Business Succession Resources<br />“If you do not have a family member who is qualified to assume the role of a successor, you may be able to utilize a non-family, key manager Succession Bridge, so that your business can continue as a family asset into and through the next generation.”<br />Order Now<br />
    78. 78. Business Succession Resources<br />Case Study: Second Generation Automobile Dealer<br />Current owner wanted to transfer ownership to 3rd generation (G3) and position for 4th. The G3 had no hands-on experience in auto industry. Dealership ran by owner and GM who saw a need to involve Management Advisory Board in operations while G3 shifts from his own business venture into the dealership on a full-time basis.<br />Click to <br />Read Case History<br />
    79. 79. Business Succession Resources<br />Case Study: Property/Casualty Insurance Company<br />Third generation owners sold the business to a bank about 7 years ago; three former principals and one new partner repurchased from same bank within past 5 years. <br />Click to <br />Read Case History<br />
    80. 80. Testimonials<br />
    81. 81. What Our Clients Say About Us<br /> “By forming a Management Company with our top key managers, they have become our partners, operating as owners, participating in profit sharing, without our having to sell away stock outside of our immediate family.”<br />
    82. 82. What Our Clients Say About Us<br />“Now that my son is coming on board, I wanted to state my expectations of his performance and development. I wanted to create a program to bring him into the business and have him report to his supervising managers without feeling I was breathing down his neck.”<br />
    83. 83. What Our Clients Say About Us<br /> “We acknowledged our outstanding key managers with a vested retirement incentive through a Management Advisory Board, that is funded by exceeding previous profit margins. I can count on them for the long term and our son is guaranteed a team that has a vested interest in guiding his growth within the company.”<br />
    84. 84. Success Stories<br />
    85. 85. Knowledge is Important, Care is Critical<br />“Our clients do not care how much we know until they know how much we care.”<br />Loyd H. Rawls, Founder & CEO<br />