The Importance of Succession Planning with Lowell Mora

Action's Antidotes

A lot of us want to have a successful and meaningful business. After many years in our business, we all want to ensure that the business we have worked hard to establish will carry on well if we retire. Succession planning is the key to ensuring a seamless transition and long-term success. But how? In this episode, I sit down with Lowell Mora, President of Impact CFO, who specializes in family- and privately-owned businesses. Lowell talks about the importance of planning for business transitions, especially as founders or business owners approach retirement, including finding suitable successors and maintaining business continuity. Tune in to learn more! --- Listen to the podcast here: Align Your Life and Thrive with Diamond Drip Welcome to Action’s Antidotes, your antidote to the mindset that keeps you settling for less. Today, I want to talk to you a little bit about succession planning. We’ve talked quite a bit about the process of starting up a business on this particular podcast, about what challenge you face on the come up, but then, what happens when you’re getting ready to retire and you want to make sure that the business is going to be in good hands and you want to make sure that your own wealth is going to be in good hands. To discuss this topic, I would like to introduce you to my guest today, Lowell Mora, fractional CFO, who specializes in working with a lot of these family-owned businesses around such issues. --- Lowell, welcome to the program. Thanks for having me. Appreciate you having me here today. Tell me a little bit about Impact CFO. Tell me a little about your story, what you do with your clients. At Impact CFO, I help primarily as a fractional CFO, which fractional means exactly as it sounds, I spend a portion of my time helping a business that may not be able to afford – it typically can’t afford a full time CFO. So my practice focuses primarily in on the family-owned business in the small to midmarket that is looking towards a transition, either to another family member or to an external exit to maximize the wealth of the family and the value of the business. Now, when you say businesses that can’t quite afford, say, a full-time CFO, what’s a general size? What number of employees is that typical – So the typical, most of us finance guys talk in dollars, but in employees, it’s typically employee levels of 25 to 100, 150. Again, it depends on the complexity of the business as well. So, in dollars, we typically talk somewhere around $5 million in sales, up to $50 million. Now, I’ve worked with smaller and I’ve worked with bigger but that’s the sweet spot. And so you’ve encountered a lot of these family-owned businesses that have gotten to this level. You said like $5, $25 million annually. I assume it means, right? So, what do you notice in some of these family-owned businesses that get to that level? Do you notice any kind of common thread in the type of people that you work with and the type of founders who are in the situation about who they are, what they’ve done to get to where they’re at? Yeah. Typically, in my practice, a lot of people out there is values based. So I look to work with people that share the same values as me, which are pretty basic, which is a high level of integrity, strong, hard work ethic.Share on X A lot of what I do is in the manufacturing, industrials, industrial products, industrial equipment. I also work with services, business services, and IT providers and things like that but, typically, it’s a business of an entrepreneur and they’re overwhelmingly, today in our world, they’re overwhelmingly male, and they’ve gotten to a point where they have a successful business and can support them but they don’t necessarily have a natural heir or successor. In a lot of cases, they don’t know what to do with that. And what typically happens, and it’s common,