Many owners have no formal business succession plan. Do you?
A business succession plan does more than plan for your future. It improves your business today. A comprehensive exit strategy clarifies goals, improves decision-making, and helps drive decisions that increase your business’s value. As a business owner, your personal and business goals substantially impact your future. Start planning today.
“It’s never too late to start. When you are ready to build a realistic and comprehensive business succession plan, our team of experts is ready to help.”
Chad Steadman | Senior Corporate Lending Director
Click a topic to learn more about business succession planning
Financing
Buyers often need to secure a commercial loan to purchase a business and maintain sufficient working capital for its operation after the acquisition. Understanding the available lending options is a crucial part of business succession planning.
Types of loans to consider
- Term Loan
- SBA 7(a) Loan
- Real Estate Loan
- Equipment loan
Escrow Services
Escrow services facilitate owner-seller financing by allowing the seller and buyer to create a private agreement to sell a business. The parties determine the financing terms in this agreement, including the interest rate, loan amount, and repayment schedule. Escrow services formalize this agreement, ensuring transparency and security.
How escrow supports owner-seller financing
- Monitor complex, multi-year transactions, ensuring obligations are met before the sale is finalized.
- Track repayment and disburse funds
- Safekeep documents, negotiable items or deposited funds
- Ensure the buyer and seller meet established requirements before releasing funds or assets.
Note that many business sales use a hybrid approach, combining traditional and owner-seller financing. Our local experts will help you determine the best option or combination of options based on your unique situation and needs.
Wealth Management and Trust
Whether you are handing your business to your child, selling to a third party or merging with another company, it is imperative to keep your business and personal financial planning and investment strategies top of mind. By structuring your business for optimal value transfer, you maximize wealth generation for the business, yourself, and your heirs.
The Role of Wealth Management and Trusts in Succession Planning1
- Create an estate and trust strategy to ensure your security following the sale of your business.
- Develop a comprehensive succession plan that aligns with your personal and business goals.
- Establish a financial plan to maximize the growth potential of your assets.
- Helps optimize your business value before and during the sale
Build the right team
You know your business best, but by surrounding yourself with the right team of advisors, you set yourself up for success. With the help of these experts, you can objectively identify hurdles, establish milestones, and map your business’s successful sale. This team often consists of the following specialists:
- Commercial Lender
- Attorney
- Wealth Management and Trust Advisor
- Insurance advisor
- CPA
Ask yourself these questions
- Do you have a written succession plan for your business?
- Have you identified your successor?
- Is your business financially sound enough to generate market interest?
- Are you and your family prepared for retirement?
Planning and executing a business succession can be difficult. The good news is you don’t have to do it alone. With more than 100 years of experience, First National has helped thousands of Alaskans plan for and successfully exit their business.
Keep it local
After successfully taking over the business from his father, Drake Construction owner Toby Drake faces unique challenges as a contractor building in Western Alaska.
Facing tight deadlines in remote locations, Toby uses First National’s One Solution suite of services to help plan his future so he can focus on building Alaska’s future.
Decisions made in Alaska, by Alaskans
A banking team that understands your industry
An institution invested in your success
How will you transition your business?
Selling to a strategic or financial buyer
Existing businesses may want to strengthen their competitive position or enter into a new market.
Selling to employees or your partner
Your employees tend to know your business best. They come with the expertise to continue running it after you leave.
Pass the business to a family member
Family members tend to be closely connected to the business or personally motivated to own and operate it.
“We are committed to meeting Alaska business owners’ succession planning needs. Whether you just opened your doors last year or plan to sell this year, our local experts will help you successfully exit your business and plan for the next phase.”
Morgan Neff | Senior Vice President and Wealth Management & Trust Director
Other Succession Planning Considerations
Financing for Growth
Flexible lending options to support your next big move — whether it’s new equipment, expansion, or investment in infrastructure.
Treasury Management
Tools to help you streamline cash flow, process payments efficiently, and protect your business from fraud.
Specialized Services
Industry-specific solutions tailored for Alaska Native entities, health care providers, tourism, and more.
Fraud Prevention
From your first business account to long-term growth planning, we’re here to provide a comprehensive banking relationship.
Contact Us
Start planning your succession planning today with a free consultation and business evaluation.
Disclosures
- Investment products are not insured by the FDIC; are not deposits; and may lose value.