Creating Seven Day Weekends: Business Succession Panel Discussion

On Wednesday, September 18th, nearly seventy business owners, advisors, and community leaders gathered at Iron Street Distillery in St. Cloud, MN, for a dynamic panel discussion on succession planning, business valuation, and transition strategies. Hosted by Douglas Cook, CEPA? , Owner of Headwaters Strategic Succession Consulting, LLC , and Wayne Elam, Owner of Commercial Realty Solutions (CRS), the event highlighted key challenges and strategies in preparing for a successful business exit. The panel, moderated by Joe Elam of CRS, featured expert insights from various fields, including business brokerage, planning, law, finance, real estate, and accounting.

Wayne Elam kicked off the event by reflecting on the 15-year journey of CRS, which has evolved from solely real estate brokerage into a trusted partner for business brokerage as well. “Many business owners have no idea how they’re going to turn years of hard work into cash,” Wayne shared, underscoring the importance of preparation. He introduced Doug Cook, who expanded on the concept of building value well before the sale process begins, highlighting that many businesses aren’t ready to go to market. “70-80% of businesses that go to market don’t sell,” Doug emphasized. “It’s never too early to start planning, but it can certainly be too late.”

The panel discussion addressed various aspects of succession planning. Alex Schoephoerster , Attorney at Moss & Barnett, P.A. , provided a critical reminder about the workload involved in selling a business. “Selling your business can feel like a full-time job,” Alex noted, “especially when owners are already stretched thin running daily operations.” He stressed the importance of assembling a team early and being prepared for the intensive demands that arise as the deal progresses. “You’ll have questions coming at you from all sides — legal, financial, and operational — and without the right support, it can become overwhelming.”

Aaron Traut , CPA at CLA (CliftonLarsonAllen) , echoed the importance of building a solid team, emphasizing the value of finding trusted advisors who share your vision. “Find your people,” Aaron advised. “It’s not just about reading books or listening to podcasts; it’s about working through issues within a circle of influence that you trust.” His advice resonated with many in the audience who are in the early stages of succession planning, illustrating that successful exits require strong relationships and experienced counsel.

Eric O'Brien , Business Broker at CRS, explained his role as quarterback in coordinating the sale process. “Your first impression is your best impression,” Eric said. He emphasized that careful planning and preparation are essential to making a strong market debut, but he also cautioned that deals often veer off script. “Quarterbacking isn’t just about guiding the sale forward; it’s about making sure the seller fully understands the process and acting in their best interests.” He specifically pointed to the panel’s extensive experience with deal flow, noting that this equips them to navigate various challenges that may arise during a sale. While they may not foresee every issue, their familiarity with similar situations allows them to react promptly, keeping the transaction on course and ensuring the best value for their clients.

Dan Nygaard , Senior VP and Lender at BankVista , emphasized that SBA lending is a fantastic financing option, serving as a safety net for banks and minimizing their risk. For sellers, thorough documentation is crucial to facilitate this process. Timely and accurate tax returns are essential; if any amendments have been made, sellers should ensure these are shared with buyers. Lenders will verify these details through tax transcripts before closing, and discrepancies can lead to delays. As Dan noted, “SBA is like an insurance policy for banks; it allows us to work with buyers who may otherwise be a little weak.” While the choice between SBA and conventional financing doesn’t always impact the sale itself, being proactive with documentation can help buyers secure the financing they need without unnecessary delays, and significantly enhance the overall transaction experience.

On the financial planning side, Dave Jacobs of Jacobs Financial , focused on helping business owners prepare for life after the sale. “For many business owners, their company has been their paycheck for years,” Dave said. He urged owners to carefully consider how much they need to sell their business for to sustain their personal financial needs in retirement, including the potential tax implications. “Understanding the net result to your pocket is key,” he added, encouraging owners to plan for every aspect of the transition.

The event wrapped up with Doug Cook reiterating the importance of focusing on both profitability and the ease of business transfer when preparing a business for sale. “My role as a Certified Exit Planning Advisor is to take the planning burden off business owners,” Doug said. In doing so, he noted, owners can focus more intentionally on growing their most important financial asset: their business. His closing remarks left attendees with a clear takeaway: a well-planned succession strategy is not just about selling a business but about ensuring its continued success and securing the financial future of its owner.

Thank you to everyone who attended for participating and engaging in such a meaningful conversation. For those who couldn’t join us, we missed you and hope this recap proves helpful in your journey! Whether you’re just beginning to consider succession or are already deep into the process, we hope this event recap inspires you to take the necessary steps to secure both your financial future and that of your business.

For more information about our panelists, please click here https://headwatersstrategic.com/blog/creating-seven-day-weekends-business-succession-panel-discussion/.