Our client Greg started working with us to develop a succession plan so he could pass on the business to his son Mark. Mark had been working in the business for 10 years but hadn’t been involved in the financial side of it. He needed to understand what was being given to him to make sure he was happy with the level of risk and potential income he could derive from the business.

We looked over the financial information and discovered that 3 years ago the business was doing well, but since then it was making losses. The cash position was still fair due to the past profitability, but it was dwindling. We compared the historical data from the good times and the bad times and came up with a model of what we needed to do to make the business viable for Mark. This meant cutting costs, redefining roles, and establishing a clear direction for the company with target markets and targeted benchmarks.