Byron McFarland is a Succession and Equity Compensation Strategist at The McFarland Group, a consulting firm that attracts, rewards, and retains talent through performance equity and ownership succession. In his role, he guides entrepreneurs on transferring ownership and control to achieve total time freedom and financial independence. Before his 18 years at The McFarland Group, Byron was the Managing Director of McFarland & Associates, where he recruited, trained, and coached advisors, executives, and entrepreneurs.
Here’s a glimpse of what you’ll learn:
- How The McFarland Group helps entrepreneurs transfer control of their businesses
- Three reasons for selling a business to internal management
- When is an ideal time to begin the business transfer process?
- The importance of anticipating risks during planning
- Byron McFarland discusses how to sell a business to management
- Ownership transfer’s impact on company culture and process documentation
In this episode:
Selling a company to an investor is the traditional business acquisition method. However, these transactions are often reserved for companies with exponential growth, and entrepreneurs have limited control over the process. Conversely, transferring a business to internal management enhances its value and allows owners to maintain a legacy. So how can you plan and execute the process of relinquishing control of your organization?
According to Byron McFarland, developing a structured agreement for appointing new ownership takes approximately three to seven years. Byron has established a planning process involving three fundamental components: people, property, and commitments. The initial phase addresses buyer concerns and expectations and seller goals, needs, and required resources. When evaluating a company ownership transfer, assessing its value, considering potential investments, and reducing risk by surrendering liabilities and shareholder agreements is essential.
Join Adi Klevit in this episode of Systems Simplified as she talks with Byron McFarland, Succession and Equity Compensation Strategist at The McFarland Group, about transferring business ownership to internal management. Byron explains the impact of a business transfer on process documentation, why entrepreneurs sell their businesses to management teams, and the importance of anticipating risks during the planning process.
Resources mentioned in this episode:
- Adi Klevit on LinkedIn
- Business Success Consulting Group
- Byron McFarland on LinkedIn
- The McFarland Group
- Verne Harnish on LinkedIn
- Scaling Up Compensation: 5 Design Principles for Turning Your Largest Expense into a Strategic Advantage by Verne Harnish and Sebastian Ross
- Michele Hecken on LinkedIn
- John Corcoran on LinkedIn
- Dr. Jeremy Weisz on LinkedIn
- How to Run Your Business So You Can Leave It in Style by John H. Brown
- Strategy and the Fat Smoker: Doing What’s Obvious But Not Easy by David H. Maister
- The Trusted Advisor by David H. Maister
- “The Benefits of Well-Documented Automated Business Processes With John Lund” on Systems Simplified
Sponsor for this episode:
This episode is brought to you by Business Success Consulting Group.
At Business Success Consulting Group, we create custom processes and tailor-made management systems so businesses can thrive.
Businesses simply can’t survive without workable systems and well-documented processes. That’s why our team of experienced professionals takes care of it for you.
So, what are you waiting for? Do yourself a favor, and cut the chaos out of your business.