Menu
Cache River Investments provides peace of mind to those business owners who deeply care about their clients and families. We understand the possibilities and pitfalls the future may hold based on our extensive experience, confidence and care.
The real answer is there is never a wrong time! Succession and Contingency should be a priority to every business owner regardless of age. Life is unpredictable, so planning for the expected and unexpected is critical for the continued success of a business. Certainly, as one nears to 60 years old there should be a greater sense of urgency to not only have a plan, but to have a written and exercisable plan. Succession planning takes time, not only the development of a plan, but to find the right solution and putting a plan of action or process in place to accomplish a desired outcome can sometimes take years. You didn’t build your business overnight, so you shouldn’t expect a viable, actionable solution overnight either. We know all the right questions to ask to help establish a successful plan, whether its succession or contingency, or bot
We have the ability and experience to do an “in-house” valuation, however we feel the most prudent plan of action is to bring in an established industry third-party valuation firm that understands the business and nuances of our industry. By doing this, we get an unbiased valuation and that helps establish a baseline to work from. Based on the particular business there may be premiums or discounts for varying reasons, one example might be average client age.
We will consider minority or majority positions based on varying circumstances, either way our preference is for you to maintain at least a portion of the business, so our projected goals are in alignment.
At the end of the day, we want what is best for your clients. If that means you working full- or part-time and that’s what you’d like to do, we not only support it, but embrace it.
There would be a predetermined formula in place over an agreed upon time frame that would dictate and determine the payment structure. This may vary based on your particular business and circumstances.
Most deals include a one-year look back that sets the final value of the note to the seller based on the key earnings drivers during that period.
For a transaction to be successful, we feel a cultural fit between both parties is critical. We don’t wish to enter any partnership that requires significant change for the business to work. That being said, what is most important to us post transition is growth. We are ranked by Barron’s as one of America’s top 100 RIAs. To achieve that takes an institutional platform with a variety of appropriate growth drivers, and client service that exceeds expectations.
Ideally, you would want to start the process three to five years ahead of retirement. However, every situation is different so some factors may alter your timeline. Do you already have a successor? Does your successor have the resources to acquire the business? Will you want to continue to work and how much? Are there other key personnel to consider?