A Purpose-Driven Exit

To address these challenges, the Chaneys introduced Mr. and Mrs. McAfee to David Ortiz, an exit strategy expert on the Legacy & Succession team. Ortiz worked with the owners and key employees through the “three legs of the stool” approach to exit planning: Personal Goal Planning, Personal Financial Planning, and Business Planning. The team clarified Mr. McAfee’s motivations for selling and built a comprehensive financial plan to ensure the transaction supported his long-term wealth and legacy goals. Throughout the process, the primary successor was engaged in monthly meetings to prepare for the leadership transition. The team identified and prioritized business risks, created a transition game plan, and conducted targeted exercises and strategy sessions to ensure the successor was both capable and confident. To further reduce risk for the owner, Legacy & Succession provided access to private capital to supplement the SBA loan, eliminating the need for Mr. McAfee to carry a significant seller’s note. Without this capital solution, the transaction would not have been feasible.

Ultimately, the outcome reflected the power of putting the three legs of the stool in the proper order. Rather than starting with business planning alone, the process was guided first by personal goals, which served as the wind directing the sailboat, with the business acting as the vessel to reach that destination. Although Mr. McAfee could have sold to a third party for slightly more money, he had already achieved sufficient wealth to meet his retirement and legacy objectives. Instead, he chose to reward the key employees who helped build the company and were effectively already running it. He exited with confidence, knowing the business would continue to thrive and create generational wealth opportunities for the next generation of employee-owners.