Ep 23 - Business Succession Planning: When To Start With Jeff Coppaken

Business succession planning is critical for every business owner, regardless of when they plan to exit. In this episode of Metcalf Money Moment, hosts Jeb, Ethan, and Eric sit down with attorney Jeff Coppaken to discuss the mergers and acquisitions landscape and the essentials of exit strategy. Jeff reveals that the best time to start business succession planning is always now—whether you're planning to sell in six months or six years. He explains common pitfalls in selling a business, the importance of having clean financials, and when to start the business succession planning process. Learn about deal structures, seller financing, and why assembling the right team of advisors early can maximize your business value and minimize tax implications when it's time to exit.

What you will Learn in this Episode:

Discover why business succession planning should start immediately, whether you're exiting in six months or six years, and learn which key advisors—including your business attorney, wealth management team, and tax strategy experts—need to be part of your planning process from day one.

Understand the critical role of the due diligence process and clean financials in maximizing your purchase price, plus learn how business valuation works and why removing lifestyle expenses from your books is essential before bringing your company to market.

Explore various deal structures, including seller financing, seller notes, and SBA loans, and discover how internal succession plans can create win-win scenarios that protect both buyer and seller while ensuring business continuity.

Tune into the Metcalf Money Moment podcast for expert insights on wealth management and retirement planning! Join Jeb, Ethan, and Eric for practical Estate Planning strategies that you can implement to unlock financial clarity and confidence. Listen now to inspire your financial journey!

TIMESTAMPS:

00:00 When to start business succession planning, including business attorney, wealth management, and tax strategy advisors

06:51 Finding the right buyer through business brokers and ensuring culture fit in mergers and acquisitions

09:32 Pitfalls, including messy financials and owner benefits that negatively impact business valuation and purchase price

13:32 Deal structures explained: seller financing, SBA loans, seller notes, and why internal succession deals often include higher seller carryback percentages

18:30 Typical transaction timelines for selling a business range from six to nine months

KEY TAKEAWAYS:

The best time to begin business succession planning is always now. Assemble your advisory team—tax strategy expert, wealth management advisor, and business attorney—to maximize value and minimize tax implications, whether you exit in 6 months or 6 years.

Clean financials are crucial for selling a business at top dollar. So, remove excessive owner benefits from your books. Don't compare a fixer-upper to a renovated property when setting business valuation expectations.

Internal succession deals often involve more seller financing due to established trust. Creative structures can include consulting arrangements and earn-outs, while proper collateral protects the seller's investment throughout the transaction.

ABOUT THE GUEST:

Jeff Coppaken, the founder of the Coppaken Law Firm, is a lifelong resident of Kansas City. Before becoming an attorney, Jeff spent almost a decade in sales, marketing, and customer service, which helped him understand unique aspects of the business model. His customer base includes closely held businesses, family offices, entrepreneurs, real estate investors, and developers, and is industry-agnostic. Jeff often assists his clients with buying or selling a business, ongoing business legal needs, and real estate transactions.

Coppaken Law Firm - Website

Jeff Coppaken - LinkedIn

DISCLAIMER:

This information is not intended to be a substitute for specific individualized tax or legal advice. We recommend discussing your particular situation with a qualified tax or legal advisor. Jeff Coppaken, and Coppaken Law Firm is not affiliated with or endorsed by LPL Financial and Metcalf Partners Wealth Management.

RESOURCES MENTIONED:

Metcalf Partners - Website

Jeb Graham - LinkedIn

Ethan Hutchison - LinkedIn

Eric Wymore - LinkedIn