Dec. 19, 2024

This paid piece is sponsored by Eide Bailly LLP.

A version of this insight first appeared on EideBailly.com.

What began as a single lumberyard in 1883 had reached a point where the future was uncertain.

North Dakota-based Crane Johnson Lumber Co. had grown into a regional leader, operating several divisions from its Fargo headquarters.

After the Briggs family became involved in the business in 1930, Crane Johnson Lumber spent more than 50 intermittent years operating under the family’s ownership.

But Wayne Briggs was nearing retirement. A transition to the next generation was no longer an option. And he remembered an exit planning seminar he had attended at the recommendation of his business advisers at Eide Bailly, so he turned to the firm to help him through a transition.

“As a business owner, you owe it to your employees to be thinking about the future and to have a transition plan in place,” Briggs said.

There’s a common factor that binds all business owners together — the need to someday transition the business to its next owner. This inevitable phase requires careful consideration, strategic decision-making and a keen eye toward the future.

For Briggs, it was a unique situation. As much as his daughter enjoyed working in the business, she didn’t want to be the next owner. For her father, keeping employees top of mind was a priority as he determined what the future could look like.

“Our transaction advisory team worked with Wayne to navigate a successful sale with a buyer that fit the company’s culture,” said Amber Ferrie, a partner at Eide Bailly.

“We had been auditing Crane Johnson and helping with their taxes for over 40 years. So when Wayne had to choose who to work with for his transition, Eide Bailly stood out as a promising choice. Not only did we already know Wayne’s business through our existing relationship, but we could also serve as a one-stop shop for the transaction — handling not just the sale but also the accounting and tax implications that accompanied it.”

Throughout each stage of the process, Eide Bailly maintained open lines of communication with Briggs, ensuring that, as the owner, he was well-informed about what to expect and how to prepare.

“Exiting the business requires extensive groundwork before, during and after the transaction to ensure success,” Ferrie said. “But ultimately, we were able to secure a strong future for both Wayne Briggs and Crane Johnson Lumber Co.”

Unforeseen circumstances often back business owners and their families into a corner, Ferrie added.

“Through his proactive and thoughtful planning, Wayne could voice his desires and goals for the company — and then work with our team to ensure those wishes were accomplished,” she said. “Now, Wayne feels peace of mind knowing that he can retire with a plan in place and a bright future secured for his company.”

Hear more about navigating the transition from Crane Johnson Lumber Co.