Exit vs Succession Planning:
The Ultimate Comparison
Stop Choosing Between
Liquidity and Legacy
Traditional Exit Planning maximizes profit but risks culture. Internal Succession Planning protects legacy but kills liquidity.
The Rogerson Business Services Sentinel Hybrid Model delivers both for California business owners.
Specialized in California Regulatory Environment
(Prop 19, LLC Transfers)
Get Your Exit Score
Find out if you are ready for a liquidity event.
License & CredentialS
CA BRE# 01861204
M&AMI
Master Intermediary
LCBB
Lifetime Broker
CM&AP
M&A Professional
CABB
CA Assoc. Bus. Brokers
M&A Source
Global Association
The California Business Owner's Dilemma
Most advisors force you into a binary choice. You either sell to the highest bidder (Private Equity or Strategic Buyer) and watch your culture dissolve, or you hand it over to family or management for a fraction of the value.
Andrew Rogerson believes you shouldn't have to compromise.
Our Performance
92%
Success Rate on Market Exits
Value Maximization
Rogerson Business Services in the lower middle market creates a "Broad Auction" environment to drive competitive tension, pushing multiples beyond the standard sector average.
Narrative Control
By managing information disclosure, we reduce the "uncertainty discount" buyers apply to private assets.
Deal Fatigue Mitigation
Our advisors act as a buffer, managing the exhaustive diligence checklist so you can focus on running your business.
Structure M&A Deals
Expertise in working capital pegs, earnouts, and rollover equity to ensure the headline price matches the cash at close.
Comparison Matrix: Exit vs. Succession Planning
Understanding the trade-offs in the California Market
| Traditional Exit (Sale to Third Pary) | Succession Plan (Internal Transfer) | Rogerson Business Services Sentinel Hybrid Model (Strategic Deal Structuring) | |
|---|---|---|---|
| Primary Goal | Maximum Profit | Continuity | Profit + Legacy |
| Liquidity Event | 100% Cash Out | Low (Earn-out/Note) | Max Market Value |
| Legacy Protection | Low / Uncertain | High Security | Contractually Protected |
| Deal Structure | Asset/Stock Sale | Gifting / Seller Note | MBO / ESOP / Hybrid M&A |
| Risk Profile | Post-Close Integration | Operator Performance | Mitigated (Deal Terms) |
| Timeline | 6 - 12 Months | 3 - 5 Years | 9 - 18 Months |
The "Sentinel Hybrid" M&A Roadmap
Rogerson Business Services doesn't just list businesses. Andrew Rogerson, M&A Advisor, structures complex transitions that satisfy California regulatory requirements and your personal goals.
Valuation & Assessment
The Sentinel Hybrid M&A Model determines fair market value and assesses "deal readiness" vs. internal succession capabilities.
Structure M&A Deal Design
Andrew Rogerson engineers the deal. MBO? Third-party sale with retention clauses? Rogerson Business Services navigates CA tax impacts.
Market & Negotiate Terms
Confidential marketing to vetted buyers or financing arrangements for internal successors.
Closing & Transition
Finalizing the legal transfer, safeguarding assets, and ensuring the legacy roadmap is active.
The California Factor
Operating in California adds a layer of complexity that generic exit planning ignores. Ignoring these three pillars can erode up to 40% of your deal value.
Prop 19 & Real Estate
Transferring business real estate to children can trigger a property tax reassessment to the current market value, crushing cash flow.
Ordinary Income vs. Capital Gains
California does not recognize a lower capital gains tax rate. You face the full 13.3% state tax on top of federal rates.
The WARN Act
Strict 60-day notice requirements for mass layoffs or plant closures are common in strategic acquisitions.
Risk Mitigation Strategy
For Internal Succession, we utilize the "Decadal Grooming" model to slowly transfer ownership, leveraging valuation discounts to lower tax burdens.
For External Succession, we utilize "Pre-Sale Optimization" to normalize earnings and find buyers who value synergies over mere asset value to offset the tax hit.
Trust and Ethics are an integral part of Andrew Rogerson, President of Rogerson Business Services
Meet Andrew Rogerson
Certified M&A Intermediary & California Business Broker
A business exit strategy isn't just about financial statements; it's about the emotional transition of leaving your life's work. With over two decades of experience in the California market, Andrew Rogerson specializes in structuring deals that bridge the gap between financial necessity and emotional legacy.
Whether navigating Prop 19 implications for family succession or negotiating with private equity for a hybrid exit, Andrew acts as your fiduciary partner, ensuring you don't leave money—or your values—on the table.
M&A Source Member | BBA Certified
CABB Accredited | 5-Star Reputation
| M&A Expert | |
|---|---|
| ✓ Qualifications | ✓ Expertise |
| ✓ Ethics | ✓ Experience |
| ✓ Confidentiality | ✓ Author |
Common Questions & Answers about Exit & Succession Planning in California
Can I sell my business but keep my family involved?
Yes. This is the core of our " Sentinel Hybrid Model." We can structure a deal where a strategic buyer acquires majority equity for liquidity, while your family retains minority operational control or employment contracts, often with a path to future equity.
How does Prop 19 affect my succession plan?
In California, Prop 19 strictly limits the transfer of property tax bases to children. If your business includes real estate, a traditional succession could trigger a massive tax reassessment. We utilize specific entity structures to mitigate this risk.
How long does the sentinel exit process take?
Typically, 9 to 18 months. This allows time for valuation, operational housekeeping to maximize value, finding the *right* cultural partner, and closing the transaction.
Why is internal succession called 'The Marathon'?
Because it requires 5-10 years of 'grooming.' You aren't just transferring stock; you are transferring institutional knowledge and leadership capability.
Can I choose a non-compete to protect the business after sale?
It is difficult in California. Section 16600 strongly favors employee mobility. However, there are exceptions for the 'sale of a business' (goodwill) that must be drafted carefully by counsel.
Ready to Structure Your Next
Multi-Million Dollar Deal?
Strategically updated for 2026 M&A and Tax Guidelines.
California Specific Warning
DRE Licensing Enforcement
To value and sell a business in CA, the firm must hold a California Department of Real Estate license. Unlicensed out-of-state "free" tools are illegal in CA.
Board Compliance (CSLB/BAR/ABC)
Free estimates ignore California's complex licensing clearances. Buying a construction or auto repair shop without CSLB/BAR clearance can trigger immediate legal failure.
Negotiate from Strength, Not Guesswork.
"If your business is in California, an out-of-state free business valuation is the fastest way to lose millions in structural errors. We live and breathe CA M&A."
Specialization Matters
Rogerson Business Services handles the Lower Middle Market (Gross Revenue $2M–$100M) with a track record of closing complex transactions across multiple CA sectors.
Request Your Defensible Analysis
For serious business owners ready to exit.
All reports are signed by a licensed principal.
Discover Your Best Exit Path
Not sure if you should sell or pass it down?
Take the short readiness assessment quiz to see which model fits your California business.
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