WHY DOES YOUR CO-OP NEED A TRANSITION PROGRAM?

• What is the cost of losing just one co-op member? Reduced rebates, less co-op income, and a reduction in your buying power, to mention a few.
• Members will not tell you when their business is for sale.  Any good advisor or business broker will tell your members to keep the sale of their business a secret. Employees, competitors, and vendors knowing about a sale can impair the business during the sale process.
• 25% or more of your members’ businesses will likely be for sale soon. Howard Brodsky, Chairman, CEO and Co-Founder of CCA Global Partners (one of the largest and oldest co-ops) presented these thoughts at a recent NCBA Conference:
• 25% of our members are planning to sell or transition their business in the next five years (according to a CCA Global Partners Membership Survey).
• Helping our members sell or transition their business is very healthy for us as a cooperative.
• The process isn’t fast, it takes years; education is the key.
• Create a point person (because the process can be long and difficult).
• Recent family business studies show that:
• Between 1990 and 2025 nearly all US privately held businesses will go through a transition of ownership and leadership. 
• Past success rates indicate at most only 40% will remain privately held or in business.

What is your co-op doing to reduce the threat of membership loss due to transition failure?

Unsuccessful transitions lead to members going out of business, selling to consolidators in the industry, or selling to competitive co-ops.

ROI: AN INEXPENSIVE WAY TO ADD A ROBUST TRANSITION PROGRAM TO YOUR COOPERATIVE

Our Transition Program consists of four essential elements to help your group increase successful transitions of your members so they may continue to support your cooperative. Click here for full details of our program.

Transition Education and Awareness Workshops

ROI Consulting conducts workshops at your cooperative meetings and Webinars between meetings to keep this topic top-of-mind and demonstrate best practices.

Confidential Buyer/Seller Matching Services

ROI maintains a confidential buyer/seller list of members and provides confidential matching services. These services allow business sellers to be introduced to potential buyers confidentially within your cooperative community.

Transition Consultation and/or Referral Services

ROI has a network of thousands of referral organizations across the US and Canada to help evaluate or execute successful transitions. These organizations provide a range of services including estate planning, family succession planning, and support for selling the business. ROI takes no referral fees and will not take on cooperative members as direct clients. As a result, your members know they are getting unbiased, independent advice.

Next Generation Management Networking Group

Prepare the next generation to be ready to take over the business successfully. The networking group educates next generation members and links them so they can continue the dialog on transition issues. Additionally, the cooperative often will find next generation leaders for committees and the board through this network.

Cooperative clients