How to plan for a successful business transition

Major business deals are underway. The company is doing well. The business you’ve helped build and manage – through good times and challenging times – is poised for long-term success.

But as every executive can tell you, a company is a living, breathing organization. There’s always a next step to consider.

And this may be the most significant step of all: determining what happens with your company when it’s time for you, as the owner, director, senior leader or partner, to step away.

Whether it’s a generational succession or an outright sale of the company, many decisions must be made. Having the right guidance, advice, and support can make all the difference.

And the time to start planning is now – even if a transition may be years away. The steps you take to prepare for a successful transition may also improve the business today.

Experienced advisors

Regions Bank has built a team of Memphis-based professionals who take a distinctive, customized approach toward helping companies and their leaders prepare for change. Regions’ experience and insights prove valuable to clients who may not always know the multiple, complex factors they should consider when a transition occurs. This is a team that’s served the Mid-South for years – and will continue to do so well into the future.

Lance Cowles leads wealth and trust advisors from Regions Private Wealth Management who work daily on transition planning. They collaborate with knowledgeable colleagues across Regions to develop a plan that helps ensure a smooth transition and safeguards clients’ financial needs.

“We begin by listening,” Cowles said. “There is no one-size-fits-all solution. We ask questions. Does the business transition involve a family succession? Is it an internal sale to employees or an external sale? What kind of legacy does the ownership want to leave? It pays to have a trusted advisor who can help people navigate the journey from everyday owner or top manager to legacy creator.”

Regional Wealth Executive Travis LeMonte of Regions agreed that asking questions early leads to better results.

“Each question means something different to each person, so we try to get the vision set early and work from there,” LeMonte said. “We consider tax planning as well. We ask about whether the plan may impact children who are not involved in the business – or employees who may want an ownership stake in the transition. It all boils down to four basic questions: Who will succeed ownership or senior leadership? Are they ready? When will it occur? And how much money is needed to accomplish retirement goals while leaving a legacy?”

Once the team fully uncovers a client’s key priorities, it’s time to customize resources to meet their unique goals. A Regions wealth advisor will lead colleagues supporting Regions’ work for clients. This may include the client’s attorney, tax specialist and any other external vendors who have dedicated experience helping these clients reach detailed financial goals including retirement, estate and transition-planning goals. Together, goals are combined into a well-defined plan.

Cowles said different business models – from small businesses to major corporations – present a unique set of circumstances. Further, planning is not all about business. It’s personal, too.

“Owning or serving as a senior leader or owner of a business is just one part of what makes a person unique,” Cowles said. “When we work with clients across all business types, we encourage them to identify their passions, in addition to their legacy goals. Are you passionate about giving back or providing for future generations? Do you aspire to travel or relocate in retirement? Our dedicated team of advisors then works to provide the guidance and solutions that keep those goals and objectives at the forefront.”

Here to help

These planning solutions are in addition to Regions’ extensive commercial banking, wealth management and consumer banking services delivered throughout the Mid-South. The company’s depth of local experience is combined with its consistent, long-term presence in Memphis to give Regions’ teams a unique level of understanding of the needs of local clients. At the same time, those clients benefit from the strength and resources of a company that serves a vibrant footprint across the Southeast and beyond.

“Clients may walk in the door expecting a transaction, but they leave Regions knowing they have a team of advisors who are willing to help them with anything they come across in life,” said LeMonte. “Our focus is to help business owners transition from something they have always known and into a new phase of passions and priorities.”

To learn more about how Regions can help your business transition, please visit Regions.com and check out their Wealth and Commercial Insights podcasts. Regions Bank, member FDIC.