Mar 29, 2023
Byron McFarland is a Succession and Equity Compensation Strategist at The McFarland Group, a consulting firm that attracts, rewards, and retains talent through performance equity and ownership succession. In his role, he guides entrepreneurs on transferring ownership and control to achieve total time freedom and financial independence. Before his 18 years at The McFarland Group, Byron was the Managing Director of McFarland & Associates, where he recruited, trained, and coached advisors, executives, and entrepreneurs.
In this episode:
Selling a company to an investor is the traditional business acquisition method. However, these transactions are often reserved for companies with exponential growth, and entrepreneurs have limited control over the process. Conversely, transferring a business to internal management enhances its value and allows owners to maintain a legacy. So how can you plan and execute the process of relinquishing control of your organization?
According to Byron McFarland, developing a structured agreement for appointing new ownership takes approximately three to seven years. Byron has established a planning process involving three fundamental components: people, property, and commitments. The initial phase addresses buyer concerns and expectations and seller goals, needs, and required resources. When evaluating a company ownership transfer, assessing its value, considering potential investments, and reducing risk by surrendering liabilities and shareholder agreements is essential.
Join Adi Klevit in this episode of Systems Simplified as she talks with Byron McFarland, Succession and Equity Compensation Strategist at The McFarland Group, about transferring business ownership to internal management. Byron explains the impact of a business transfer on process documentation, why entrepreneurs sell their businesses to management teams, and the importance of anticipating risks during the planning process.