Legacy or Liquidity: Choosing the Best Exit | 920

A founder with two adult children faces the classic question: pass the company to the next generation or sell and distribute the proceeds. Dave and Harry unpack how to evaluate successors, build a real leadership bench, separate roles from rights, and design governance that protects both relationships and enterprise value. 

What You’ll Discover Today

• A simple framework to decide between succession and sale without torching family dynamics. 
• How to test readiness of next-gen leaders with real responsibilities, rotations, and outside work. 
• The management hires that change the math on value and optionality. 
• Why distributions, incentives, and governance must separate shareholder rights from employee roles. 
• Practical ways to shore up finance and HR before any transition. 

Key Topics Discussed

• Communication before decisions: Align parents and adult children on goals, roles, and timing. Don’t spring a sale or a promotion. 
• Capability checks: Rotate next-gen through key functions, set measurable targets, and insist one child works elsewhere first. 
• Scale drives structure: At 20 to 30 million in revenue you need a real exec team. That creates options like a management buyout. 
• Outside mentors without undercutting: Bring seasoned executives who coach next-gen and still respect the founder’s role. 
• Governance that prevents fights: Board or advisory board with a savvy banker, clear distribution policy, and incentive plans tied to performance. 
• Professionalize the back office: Fractional CFO for three months to normalize financials, then PEO or HR consultant to clean up HR, payroll, and compliance. 
• Growth as a teacher: Use small acquisitions as a proving ground and value accelerator, with structured participation for the next generation. 
• Founder financial planning first: Health, lifestyle, and risk coverage before succession steps. Set expectations with real numbers. 

Quick Checklist You Can Use

• Define your objectives for wealth, risk, and legacy in writing.
• Map a 18 to 36 month readiness plan for successors with rotations and KPIs.
• Hire at least one senior operator and a fractional CFO now.
• Stand up an advisory board and formalize a distribution and incentive policy.
• Decide your default path with a trigger: inside succession if targets are hit, market sale or MBO if not. 

Links and Resources

• Call Us: [phone]
• Buy the 60 Second Sale Book: https://www.amazon.com/60-Second-Sale-Ultimate-Relationships/dp/1119499763

Call To Action

If you are wrestling with the founder’s dilemma, get objective eyes on the plan. Book a call, tighten your governance and finance, and create two good options instead of one risky bet.