Thursday, April 3, 2014

Why people matter in exit planning

1. Some studies report almost 57% of all c-level hires fail.
2. Other studies show that family held businesses fail 60% of the time during the second generation hand off. The failure rate is almost 90% by the third generation.
3. Some buyers will not consider buying a business with high levels of key person dependency.
4. According to some studies, only 12% of non-profits have a plan to develop and replace leaders even due to natural attrition from retirement.

The catch? These statistics and studies focused on organizations that did not use professional tools and trainings to develop their next generation of leaders and managers. (We are happy to provide you with links to the studies mentioned above.)

How do we solve these challenges for organizations?

We combine the insight, perspective, and experience from our previous business endeavors in private equity and investment banking with our training in the administration and interpretation of our assessment tools. We are trained and experienced in the professional development of high potential new leaders and managers.  We know how to get them ready to execute on a vision for growth no matter why senior leaders are leaving. In fact, many buyers are reticent to move forward when they perceive too much "key person" risk and the lack of a leadership team "bench".

Our resources help the new generation of leaders of any organization handle the grieving, stress, and fear that come with change.  The contingent go-forward leadership team has to "hit the ground running" in the event of the sudden or planned departure of a key leader due to retirement or sale.  KLG's program facilitates the creation of the exit or contingency plan and then puts in place the teamwork necessary to execute the plan consistent with the vision and values of the organization.  Exit and Contingency planning does not have to be unpleasant and our customized solutions are an important step in securing your organization's future for new owners or your retirement. 

Our tools and techniques are time tested and proven in large and small organizations and we focus our work on your vision and goals.   

In his prior professional positions, our CEO has been part of a number of private company exits and has extensive experience with strategic and private equity buyers.