Episode 7: Succession Planning with Dan Pharr
Successfully transitioning your business requires careful planning at every stage. Determining a realistic, market-based value is also critical. Dan Pharr, president of Pharr Valuation in Richmond, Virginia, specializes in business valuations of closely held and family owned businesses. A Certified Valuation Analyst and a Certified Public Accountant, Pharr has a 30-year history in the jewelry business. Previously, he served as executive vice president and chief financial officer of precious metals refiner and supplier Hoover and Strong. He is also a past chairman of the Jewelers Board of Trade.
In this episode, Dan discusses the best practices for sellers who want to get the most value for their businesses and ensure their legacies endure. He also explains how a business valuation can improve both the short- and the long- term marketability of a company and how sellers can assist with financing and securing a sale.
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- Timetable for business owners preparing to sell/retire.
- Retaining customers for the new owners
- Determining a realistic asking price
- Using valuations to assist with retirement planning
- Valuation methods for different business types
- Fee structure and types of valuations
- Conducting the valuation in-person vs. online and geographical considerations
- Merging with or selling to a competitor
- Ways that sellers can assist with financing and securing a sale
- Importance of planning succession as far ahead as possible
- Summary of key steps, importance of careful planning
Related MJSA Journal Articles and Resources:
- Mind the Gap- Planning for tomorrow’s success, today. By Terri Wallo Strauss
- Best Buy - Tips for buying an established jewelry operation. By Sharon Elaine Thompson
- Expanding Your Horizons - Exploring the different levels of business expansion By Sharon E. Thompson
- On the Move - Keeping your business flexible for long-term success. By Andrea Hill
- Survival of the Fittest - How to plan for surviving and thriving in a recession. By Terri Wallo-Strauss
- We Are Family - The art of running a family business. By Marlene Richey
Mentioned in this episode:
- Pharr Valuation - Business valuation and estate planning.
- Hoover & Strong, Inc. - Precious metals refiner and supplier of findings, loose diamonds, and finished jewelry.
- Richline Group - Berkshire Hathaway owned precious metals and materials manufacturer and marketer.
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