One of the most popular and long-lasting Christmas stories is that of a little reindeer with a bright red nose. Rudolph the Red-Nosed Reindeer first appeared in a booklet for a department store in 1939. Created by Robert L. May, Rudolph the Red-Nose Reindeer has seen dozens of iterations over the years, including a popular song written by May’s brother-in-law, several films, and television specials.
As we looked back at the history of this classic Christmas tale, we found quite a few connections to exit planning and advisory teams!
An Organized Team
You know Dasher and Dancer and Prancer and Vixen
Comet and Cupid and Donner and Blitzen
But do you recall
The most famous reindeer of all?
Santa Claus is famously known to have eight reindeer pulling his sleigh on Christmas Eve night. These reindeer, as listed in A Visit from St. Nicholas commonly called Twas the Night Before Christmas, are Dasher, Dancer, Prancer, Vixen, Comet, Cupid, Donner, and Blitzen. These eight reindeer, along with Rudolph on cloudy nights, work together as an organized team to pull Santa’s sleigh. With each reindeer pulling its weight, the sleigh can traverse the globe in a single night.
Accountability is the backbone of any successful team. On an owner’s team, advisors must work collaboratively to manage the owner’s business, personal, and financial goals. Business owners who surround themselves with a holistic team of advisors and professionals will be more successful in their transition. Whether that be a sale to a third party, private equity, a family transition, or any other exit option.
It’s been estimated that ineffective teamwork results in $1 trillion of economic waste per year. Combined with virtual work environments becoming more and more commonplace, shifting the dynamic of how teams build trust, it becomes apparent just how important effective team building is.
Learn more about building a strong team of exit planning advisors in Building The Exit Planning Dream Team during the 2024 Exit Planning Summit.
The Guiding Light
Then one foggy Christmas Eve
Santa came to say
"Rudolph, with your nose so bright
Won't you guide my sleigh tonight?"
Rudolph the Red-Nosed Reindeer is known for one thing. You guessed it: his red nose. In the original story and the subsequent song, movie, and sequels, Rudolph is initially ostracized for being different until Santa Claus notices that Rudolph alone can lead the team of reindeer on the “foggy Christmas Eve.” Rudolph then takes control of the sleigh and leads the full team of reindeer to deliver all of Santa’s toys around the world. While each reindeer on the team has a crucial role to play, Rudolph ensures they stay on course.
Similarly, every advisor on an owner’s team is essential and serves a specific purpose. The core transition advisory team for a business should contain, at minimum, an attorney, a CPA, a financial advisor, and a growth consultant. At a minimum, one of these core advisors should hold the Certified Exit Planning Advisor® (CEPA) credential. This team should be extended with functional specialists who assist the owner when needed. These advisors can include M&A advisors such as an investment banker or business broker, an estate planning attorney, an insurance and risk advisor, a commercial banker, and a family business advisor.
The CEPA acts like a quarterback and ensures all members of the team are working towards the owner’s target goals: both short-term and long-term. Short-term goals can include minimizing employee turnover, improving structural capital, or growing their customer base. Long-term goals include year-over-year growth, improvements to EBITDA, and ultimately successfully exiting their business.
Learn more about leading the exit planning team during Demystify the Role of an Exit Planning Quarterback: Once and For All at the 2024 Exit Planning Summit.
