Succession can be a sensitive topic. Not all entrepreneurs have suitable successors, WINDI can facilitate the lengthy process of ownership transfer. We have three separate succession models but are open to alternatives. As entrepreneurs ourself, we understand the personal relationship between a business and its owner. Not only do we understand your goals and motivations, but we’ll ensure the entrepreneurial spirit never leaves your heritage.
Aside from the business, the relationship and personality match is the crux of a succession deal. If the groups do not see eye-to-eye on principles, it’s a nonstarter.
Succession Buyout
A succession buyout is a similar to a classic acquisition.
Key Points:
- Complete transfer of equity and control.
- Management transfer period required.
Succession Trust
A succession trust is a concept that WINDI proposes for businesses that meet a number of size and capitalization requirements. A succession trust allow you to keep your businesses as a family financial support for future generations. For those without family concerns, a charitable trust can also be specified as the recipient.
Key Points:
- Partial transfer of equity with remaining transferred to a trust entity.
- Trust entity receives annual dividends that can be further distributed by trustees.
- Potential for family to retain governance role.
- Management transfer period required.
- Performance based equity compensation.
Succession Partnership
A succession partnership can be one of two models. In the first model, you are looking to reduce your responsibility to the business but not ready to part with it in the form of a succession buyout. The general operations will transfer out of your control under WINDI’s control allowing you to step away from the business.
Key Points:
- Complete or partial transfer of control.
- Partial transfer of equity.
- Retention of a governance role.
- Management transfer period required.
- Additional performance based equity compensation.