simongonzalezdc Transition Business
The final stage: what happens when the founder is ready to step back, sell, or close.
What this skill manages
Succession (family or internal)
- Identify the successor (family member, employee, or buyer)
- Create the transition plan (role handoff timeline, training plan)
- Governance documentation (who decides what after the founder leaves)
- Family-business dynamics (the "who gets the business" conversation)
Sale preparation
- Valuation methods for small businesses (SDE multiple, asset-based, market comp)
- Clean books (2-3 years of organized financials)
- Reduce founder-dependence (documented SOPs, trained staff, systems that run without the owner)
- Buyer profile (who buys this type of business?)
- Data room preparation (financials, leases, contracts, permits, SOPs)
- Broker vs FSBO decision
Pause / turnaround
- Temporary closure plan (what to pause, what to maintain, what to communicate)
- Turnaround diagnosis (why is the business struggling? cash, customers, costs, or people?)
- Restructuring options (cost cuts, menu/service simplification, hours reduction)
Closure
- Orderly shutdown checklist (notify stakeholders, settle debts, sell assets, cancel permits)
- Final tax obligations
- Employee communication and final pay
- Customer notification
- Asset liquidation plan
- Preserve the brand (trademark, recipes, customer list — what has residual value?)
The founder-dependence score
Scored from day one (by lead-people), not just at exit:
- 0 = business runs completely without the founder (sellable)
- 1-3 = key decisions need the founder (need a GM first)
- 4-7 = daily operations need the founder (need SOPs + staff)
- 8-10 = the founder IS the business (not sellable, not scalable)
Key outputs
- Succession plan (if continuing)
- Sale data room (if selling)
- Closure checklist (if stopping)
- Founder-dependence score + reduction plan