Business Transition – General: The Right Overview Question
Here is an what I consider to be a critical early question that I ask of business owners about their business when discussing its value and ownership transition.
The Right Overview Business Transition Question
Do you believe one or more of the following things – either individually or in combination – Is going to result in a material positive, neutral, or negative impact on your business in the contexts of (a) its viability as a going concern and (b) its value growth potential:
- ongoing globalization?
- prospective central bank policies, particularly ongoing policies and practice of the U.S. Federal Reserve – this where the U.S. economy currently accounts for about 25% of world gross domestic product?
- current and prospective government debt and business-related regulations and Interventions?
- macro-, country-, and region-specific economic trends?
- ongoing technology advances?
- business combinations in your industry(ies)?
- should you as a business owner and your business consultants be focused on these things to a greater degree than they are when contemplating business value and transition?
Overview Commentary – Business Transition
In discussion with business valuation consultants, I have found most address these things – albeit not always in the depth or risk-related concern I believe is appropriate.
On the other hand, and where this may be somewhat unfair, I have found many persons I have interacted with who hold themselves out as business transition consultants – particularly those who principally offer what I refer to as soft-side transition advice – tend not to focus on these and other business issues to the degree I believe they should as they focus on things such as the importance of good communication among owners. Those things said, the questions posed in this post are for me taking on ever-increasing importance in the context of both business value and transition. This in an economic and business environment where many are expressing increasing concern over world and country-specific economic growth, financial markets volatility, trade protectionism, ever-increasing government debt and regulation, ongoing and potentially disruptive technological advances, ongoing climate change, apparent increasing societal disorder in many countries, and ongoing U.S. political partisan behavior.
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Ian R. Campbell has provided business valuation and transition advice to business owners and advisers for 50 years. See Profile.
In his retirement from active practice he:
- Advises a limited number of business owners with respect to valuation and their business transitions.
- Works to provide business owners and their advisors with thought-proviking business value and transition commentary.
Disclaimer: Blog content ('Content') does not constitute individualized business valuation, transition, economic, technology or investment advice. The ideas, views and opinions expressed in the Content are solely those of the author. Provided 'as is', Content is general in nature and may not be relevant to individual business facts and circumstances, may change without prior notice, may be incomplete, inexact, or incorrect for jurisdiction-specific or other reasons. Content is used at the reader's own risk.
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