Planning for your future, improves your business today
A business succession plan does more than plan for your future. 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.
What’s your exit strategy?
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 business partner
Your employees tend to know your business best. That expertise will help them continue to run it after you leave.
Pass the business to a family member
Family members tend to be closely connected to the business and personally motivated to own and operate it.
“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
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.
Key answer to help with your succession planning
What to know about financing the sale or purchase of my business?
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
- Lines of Credit
- Short-term working capital
How to plan your future with wealth management and trusts?1
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 succession planning
- 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
What should I know about savings, checking, and other accounts?
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 accounts…
- Term Loan
- SBA 7(a) Loan
- Real Estate Loan
- Equipment loan
How can escrow support a private sale?
Escrow private note services can be a powerful tool for businesses undergoing transitions, such as mergers, acquisitions, leadership changes, or major financial shifts. Escrow services provide stability, credibility and assurance that private deals proceed securely.
- Trust & Transparency: When multiple parties are involved in negotiations, escrow services act as neutral third parties, reducing disputes and fostering trust.
- Financial Security: Help safeguard assets, ensuring that funds or critical documents are only released when agreed-upon conditions are met.
- Smooth Transactions: Whether selling a business, restructuring, or securing investments, escrow ensures that payments and obligations are handled properly, avoiding unnecessary risks.
- Confidentiality: Private notes in escrow arrangements help protect sensitive information until agreements are finalized.
How escrow works
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.
- 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.
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
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
“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
Your One Solution
With more than a century of experience, we offer comprehensive solutions to meet all of the financial aspects of your business’s succession planning needs.
Treasury Management Services
Talk with our local experts to discover the right solutions to drive your business’s success.
Loans and Lines of Credit
Keep your business moving forward by improving liquidity or obtaining the necessary funds for your next big purchase.
Online and Mobile Banking
Manage your accounts anytime, anywhere with secure online and mobile banking solutions.
Checking Accounts
Find the checking account that works best for your unique business needs.
Savings Accounts
Save confidently and efficiently with First National savings accounts.
Business Credit Cards
Manage your expenses with small business tools, online account management, Mastercard ID Theft Protection and more.
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.