The internal transition of ownership from one generation to another is a process, not an event. This process may occur over a number of years through the periodic sale of equity between buyer(s) and seller(s). To be successful, ownership perpetuation requires careful thought, discussion and planning. There must be time to discuss the needs of both parties involved, and time to design a plan and receive input from all who will participate before the plan is finalized. Lastly, a successful perpetuation program requires periodic reviews and modifications as circumstances change. All sound perpetuation programs contain four key inextricably linked components we refer to as PACT:

• People - qualified leaders in sales and management who will take the business forward
• Agency value - a realistic expectation of the value of the firm by current and prospective owners
• Capital - a strong balance sheet with sufficient working capital and tangible net worth
• Time - to plan and implement each of the above

OPTIS Partners works with clients to assess their needs and develop action plans and alternatives for each of the above components. We will also provide and/or assist with the following specific deliverables:

• Establishment of the valuation basis from which to start the buy and sell process and updating of the valuation as necessary over time
• Development of plans to fund the transition of ownership between individuals
• Creation of cash-flow projections and other financial projections throughout the term of transition
• Revision of projections and plans as circumstances continue to develop