SERVICES
Liquidity & Succession Solutions
Smooth Transitions and Tailored Liquidity Solutions for Family Businesses
Maintaining healthy cash flow is crucial for family-owned businesses, but freeing up cash can be challenging. Interchange Capital Partners creates custom liquidity solutions to support business growth while guiding family businesses through leadership transitions. We align differing visions, prepare new leaders, and craft optimal exit strategies by understanding shareholders' unique needs and assessing the business's value and growth potential.
KEY MISTAKES
OWNERS MAKE -
SOLUTION -
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Liquidity Options
Interchange will develop strategies that aim to quickly generate liquidity, such as leveraging financial instruments, restructuring debt, and exploring sale-leaseback options for transition flexibility.
Lack of Liquidity Options
Not having multiple strategies to generate liquidity quickly limits flexibility in the transition process.
Cash Flow Management
We seek to implement policies to balance dividends with cash flow needs, retaining enough capital to maintain and grow the business without jeopardizing its competitive position.
Excessive Dividend Payments
Paying out large dividends, leading to insufficient cash flow for the business to maintain its competitive position.
Balanced Family Liquidity
We strive to establish a family liquidity policy aligned with business growth, setting clear guidelines for distributions without compromising market position.
Family Liquidity Demands
Allowing family liquidity needs to overshadow business growth and competitive strategy, resulting in a declining market position.
Unified Goals Before Professional Advice
Interchange holds comprehensive family meetings to align goals before consulting accountants and attorneys, fostering a cohesive transition plan reflecting all stakeholders' visions.
Starting Conversations with Accountants and Attorneys
Initiating ownership and liquidity discussions with accountants and attorneys without first aligning family and business goals.
Leadership Transition Planning
We create a detailed leadership transition plan early, including mentorship and training for new leaders, to ensure a smooth transition and minimize disruptions.
Leadership Transitions Mismanagement
Mishandling leadership transitions can derail the business and cause fractures in the ownership group if not properly planned in earlier stages.
Aligned Owner Visions
Interchange holds vision alignment sessions with all owners to endeavor to create a unified plan, preventing tensions and unrealistic liquidity demands.
Unaligned Owner Visions
Differing visions and goals among owners can create tension and unrealistic liquidity demands, often stemming from the absence of a unified and cohesive vision established at earlier stages.
Optimal Entity and Ownership Structures
We regularly review and update entity and ownership structures for flexibility and tax efficiency, consulting legal and financial experts aiming to minimize costs and maximize benefits.
Inadequate Entity and Ownership Structures
Not fully vetting current entity and ownership structures, leading to inflexibility, higher taxes, and increased costs during the ownership transition.
Valuation Timing
We schedule regular business valuations and use strategic valuation discounts targeting reduced costs and seeking to ensure accurate valuation during ownership transition.
Missed Valuation Discounts
Failing to take advantage of valuation discounts at appropriate times in the process, potentially increases transition costs.
Leveraging Owner Resources
We utilize individual owners' resources and balance sheets to create custom ownership transition structures to include exploring co-investments and pooled resources.
Underutilized Resources and Balance Sheets
Not leveraging the resources and balance sheets of individual owners to create custom, bespoke ownership transition structures.
What Makes Interchange Different
We simplify the family business lifecycle with our Clarity Foundation™. Our initial 180 days involve:
Clarity
Getting a clear history of your family, business, and ownership history from inception to the present day
First 30 Days
Understanding
Explore strategies that get your company on track, aiming for success.
Next 60 Days
Action
Develop and begin executing the detailed action plan.
Next 90 Days
Aiming to Optimize Cash Flow and Navigate Succession with Confidence and Continuity
To learn how we can help you, set up a consulting session with one of our Business Advisors today.
The tax and legal information contained herein is general in nature. It is provided for informational purposes only and should not be construed as legal or tax advice. Always consult an attorney or tax professional regarding your specific legal or tax situation.