Your Florida surveying firm’s future is secure when your trusted employees become owners while you receive 100% cash at closing. The right financing and succession plan ensures legacy protection and retirement security.
The Step-Up Legacy Plan™ is a practical, cost-effective alternative to traditional ESOPs, tailored for firms with $1M to $8M revenue. It eliminates seller financing risk and complex paperwork, adapted for Florida’s evolving SBA lending landscape in 2024-2025.
With careful 5-7 year planning, you can engage banks early, groom leadership, and structure a bankable deal that preserves your culture and maximizes your exit payoff.
Florida surveying firms can unlock full payment upfront and preserve legacy through disciplined succession and SBA-backed employee buyouts.
Successfully exiting a Florida surveying firm while preserving its legacy requires a strategic, multi-year approach. Early preparation spanning 5 to 7 years allows you to groom key employees, clean up financials, and build a bankable deal structure leveraging SBA financing.
Step 1: Leadership Development and Financial Transparency (Years 1-2)
Identify your top technical and business leaders who understand your firm's workflows, client base, and values. Concurrently, document your project backlog, work-in-progress, retainer agreements, and client contracts in detail. Transparent financials not only support valuation but also increase lender confidence.
Step 2: Strengthen Client Contracts and Risk Mitigation (Years 2-3)
Formalize client retention contracts and guarantees that demonstrate recurring, stable revenue. This reduces lender risk perception and enhances employee buyers' eligibility for SBA 7(a) loans. In Florida’s market, demonstrating strong contract-backed revenue is critical to qualifying for financing with favorable terms.
Step 3: Engage SBA Lenders and Design Financing (Years 4-6)
Early collaboration with SBA-approved lenders familiar with A/E/LS firms in Florida is vital. SBA 7(a) loans now typically offer up to 90% financing with about 10% down payment from buyers, though interest rates may range between 10% and 13.75% in 2024-2025. The Step-Up Legacy Plan™ utilizes these loans to deliver near 100% cash at closing to sellers, eliminating the need for you to provide seller financing or personal guarantees.
By following this disciplined roadmap, you position your firm to unlock full liquidity at closing while empowering your trusted employees to take true ownership. This approach aligns well with Florida’s steadily growing economy and its well-supported SBA lending infrastructure.
Disciplined planning helps your employees buy your firm with bank financing, giving you cash at closing and preserving your Florida legacy.
Implementing the Step-Up Legacy Plan™ demands coordinated steps tailored to Florida surveying firms’ unique attributes:
Successfully navigating these steps reduces typical employee buyout challenges such as lender skepticism, complex deal structures, and cash flow uncertainties. With recent SBA changes and Florida’s positive economic outlook, this approach offers an achievable path that aligns seller liquidity with legacy concerns.
Planning 5 to 7 years ahead not only aligns with SBA financing timelines but also ensures market valuation multiples remain favorable. Early preparation helps avoid the ‘parent loan’ trap where sellers become financially exposed by carrying seller notes.
Finally, partnering with advisors who understand SBA lending, A/E/LS firm valuations, and Florida’s market specifics significantly increases the probability of a smooth, bank-financed transition that benefits seller, employees, and clients alike.
Your Florida surveying firm’s future is too valuable to leave to chance. The Step-Up Legacy Plan™ combined with updated SBA financing options offers a clear, proven path to exit with full cash at closing while empowering your trusted employees to become owners.
Start your 5 to 7 year succession process today: groom leadership, enhance financial transparency, and build relationships with SBA lenders familiar with your industry. Allen Business Advisors stands ready to guide you through this evolving market and complex process.
Reach out now to protect your legacy, maximize your exit value, and secure your retirement on your terms.
