Upon entering the world of investment banking and business advisory, things seemed very familiar to me, despite the dramatic shift in my professional career. In a former life I, like many of our clients, had been involved in a multi-generational family business. During my tenure in the family business, I worked shoulder to shoulder with close family members, implemented a succession plan and later pivoted from our plan to sell the business. The latter of which the Beringer Group was our M&A advisor.

The Beringer Group, is a 40 year old company with a niche specialization in industrial distribution, working in a variety of sectors from plumbing & HVAC to construction equipment & industrial automation. My goal in joining The Beringer Group as an advisor was to immediately help other business owners navigate and execute on consequential strategic planning initiatives of which I have first hand experience. But my first year as an advisor was an eye opener, offering a crash course in the complexities and nuances of M&A and Succession Planning. What follows are some of my key insights and takeaways that may help you take action to positively impact your family and business.

Lesson #1 - Not Urgent but Important

All of us mortals have experience trying (and sometimes failing) to make a long term change in our lives. It could be developing a positive lifestyle trait or eliminating a bad habit. We understand the need to take action, yet the size of the task, or the lack of immediate results, has conditioned our minds to believe it can continue to wait.

The most direct articulation of this paradigm is the Eisenhower Matrix, which plots a 2x2 decision matrix with Urgent or Non-Urgent on the X-axis and Important or Not Important on the Y Axis. Classically used as a time management tool, the matrix also provides insight into our default prioritization and time optimization strategies. Our attention is naturally pulled towards the urgent activities, while we delay on the important, non-urgent activities where we accrue the biggest gains.

Making the decision to develop and implement a strategic plan to keep, sell or grow your business is simultaneously personal, strategic and consequential. As such, it often falls in the Important/Non-Urgent quadrant, siloing itself in a conceptual purgatory where the need remains evident yet one’s inaction can be rationalized. In other words, it is easy to wait and “do it when the time is right.”

The biggest takeaway from both my personal and professional experience is that most owners (myself included) find it hard to step out of their comfort zone and take action. There are many reasons why owners find it hard to plan for their business without them. Planning to leave a business always requires confidence in your successor(s), but equally important is a comprehensive plan that facilitates action. If you’re simply waiting for things to happen, you may find yourself waiting a long time.

Like hiring a personal trainer, working with an advisor is a great way to push the ball forward. A lot of our work in the initial stages of the planning process is actually very fun and focuses on articulating your goals, contextualizing your individual circumstances and reviewing all the options available to you. Once you clarify your goals and understand the various directions you can take the business, it becomes more manageable to develop a strategy and take the steps necessary to realize it.

#2 Family matters

When considering a succession plan, relationships among owners and future stakeholders are critical. In the world of independent wholesale distributors, multi-generational ownership provides an unequivocal competitive advantage through a deeply personal mission to succeed that transcends just the bottom line. Despite this inherent alignment, things become increasingly more complex as ownership of a multi-generational family business expands out the branches of the family tree to include cousins, second cousins & in-laws. While there is usually a shared desire for the business to thrive & endure, family conflict can be a death knell for an otherwise healthy organization.

As such, family succession planning is an important opportunity to address existing conflict or head off future conflict by clearly defining each member's role and responsibilities within the organization. This is often easier said than done, especially when it comes to existing conflict.

Part of our job as advisors is to understand each individual family member's unique perspectives, unbiased from what could sometimes be years of pent up frustrations, and how they fit into the broader picture. We find that family conflict often stems from a lack of properly defined roles and blurry lines between each individual’s sphere of influence. This is seen in family businesses of all sizes, but especially those which have experienced significant growth without an equal dose of organizational refinement. Ultimately there is no silver bullet for family conflict, but allowing for sensitive interpersonal issues to be thoughtfully addressed in the context of improving the organization can be a disarming and constructive approach.

#3 - Back to school

Young and old leaders alike need more industry specific education to grow through acquisition. Mergers & Acquisitions can be an opaque subject to the uninitiated and comes with a litany of financial jargon that can be overwhelming. But the reality is that growing your business through acquisition is not exclusively the domain of regional and national powerhouses. Smaller companies with a low time preference can equally position themselves to make competitive bids and win deals if they understand the process and employ bidding strategies which recognize long term benefits.

In my experience speaking with small business owners at various co-op and industry meetings, there is an incredible appetite for this knowledge, but many find there are few industry specific resources out there. At our firm, we’ve made an effort to work closely with our co-op and industry association partners to provide target webinars and literature that helps demystify the acquisition process and level the playing field. A recent example is our 14 Steps to Acquiring a Strategic Competitor, which was designed to help business leaders familiarize themselves with the acquisition process. (If you would like to receive a copy please email or message me on LinkedIn.)

Planning to leave a business always requires confidence in your successor(s), but equally important is a comprehensive plan that facilitates action. If you’re simply waiting for things to happen, you may find yourself waiting a long time.

#4 The synergy of M&A and succession planning

M&A and succession planning are inextricably linked. Companies that are prepared for their futures with comprehensive strategic planning are better positioned to take advantage of M&A opportunities. They have clearly defined goals, structured leadership and clarity towards the future. While succession planning provides a clear roadmap for leadership transitions, it also makes businesses more attractive to potential buyers or partners. Conversely, M&A offers pathways for succession, providing exit strategies for retiring owners and facilitating growth through strategic acquisitions.

A reflective conclusion

Reflecting on my first year in investment banking within the distribution sector, it’s clear that both M&A and succession planning are critical to a company's success. The lessons I’ve learned highlight the importance of strategic planning and expert guidance. As the distribution landscape evolves, companies that clearly define their goals and position themselves for continuity gain a competitive advantage—whether by seizing growth opportunities or navigating challenging times. It has been a rewarding journey to date and I look forward to continuing my work with business owners across the industrial distribution landscape.