Accelerated Business Performance Drives 15x Valuation Multiple
In comparison to newly launched start-ups, second-generation run companies have the initial advantage of taking over a brand that is already built instead of having to start from scratch. However, many second-generation leaders play a pivotal role in implementing initiatives that take the business to the next level of growth and profitability, while strengthening the family legacy for future generations.
All owners eventually exit the business—and many have the desire to pass their legacy on to their children. This was the scenario for a successful food testing and analysis company that specialized in analyzing foods for pathogens, bacteria, spoilage and overall comprehensive food safety and quality. The founding owner’s two children were successfully running the business; however, in 2013, the economy was recovering from the Great Recession and the owners hit a crossroads: do they commit to improving the company’s value or find a buyer to sell the company?