The Value Track: Exit – Succession Planning / Generation to Generation Transition – A Case Study

Positioning and Growth for Transition

CDA, Inc. is a successful health insurance agency with four decades of focus on the health and well-being of their clients.

“As we continue to build business value, I am also preparing my fun, travel and family time.”

The Challenge – Planning the Transition

Erica was not “running out the door”, but she did recognize that over several years she would be looking forward to a transitioning her business. She loves what she does and is passionate about helping her clients, especially in this complicated healthcare environment. How can Erica get the money she needs/wants as she transitions out of the business? How can John step in? How does Erica transfer her knowledge to set John and the business on a path for continued success for decades to come?

“I knew I needed to plan. I kept putting it off, wasn’t sure exactly which path to take.” ~ Erica Dumpel, President, CDA, Inc.

The Solution

Assistance through four key steps: 1) Setting the stage with individual conversations, then building agreement around goals. Creating a picture of the company at the transition time. 2) Building a business plan to address strategy, risk management and business process improvement. 3) Structural planning – financial, legal, estate and risk – issues to provide clarity for family members in the business and those not directly involved. 4) Outlining a transition plan – the duties and training that John would need to take on. We keep all of this together through regular progress review and re-validating as the business and industry changes.

“David has facilitated discussions on the big issues, competing objectives and forging a common path.” ~ Erica Dumpel, President, CDA, Inc.

Results

Erica now has in place a target transition date with specific agreement on her role and John’s role, including specific milestones. The business plan goes out several years with the high-level strategic goals top of mind. The current year’s action plan gets day-to-day focus. CDA is projecting growth in revenue each year, as well as growth in business value leading up to the planned transition date. Succession planning is well under way!

“Cliché but true – with four decades in the industry, I felt I knew more than most have forgotten. David’s guidance has been crucial as an objective, experienced facilitator, a strategic thinker and a planner…helping us to lay out detailed action items that will position the company for growth and transition.” ~ Erica Dumpel, President, CDA, Inc.