Redfern Concrete: Family Business Succession and Sale Strategy with Enhanced Valuation

When Lee and his wife decided to retire and sell Redfern Concrete Construction, their goal was to transition ownership to their son, Torey, without imposing a financial burden that could jeopardize his success. They sought to maximize the company’s sale price while ensuring a smooth and equitable transfer.

The Challenge

After more than 50 years of building a reputable and financially stable company, the Redferns faced several challenges:

Determining a fair market value that would support their retirement while being manageable for their son.
Structuring the sale to minimize tax liabilities.
Ensuring the company’s continued success under new ownership.

Lee was initially hesitant to involve external advisors in the intimate details of his business and personal finances.

Our Approach

OneAccord began by establishing trust with Lee and Torey, facilitating open discussions to understand their individual objectives for the sale.

Key steps included:

Aligning the family’s goals to create a unified vision for the transition.
Engaging a CPA and attorney to explore financial strategies that would benefit both parties.
Incorporating a wealth advisor to assess the family’s financial portfolio and retirement needs.

This collaborative approach allowed for the development of a transaction structure that addressed both the financial and emotional aspects of the transition.

The Outcome

The strategic planning led to:

Increased Sale Price: Achieved a 70% higher sale price than initially anticipated.
Tax Efficiency: Implemented strategies that reduced tax liabilities on the proceeds.
Retirement Security: Enhanced the Redferns’ financial portfolio, ensuring a comfortable retirement.
Sustainable Transition: Structured payments to minimize financial strain on Torey and the company.

Ownership was successfully transferred to Torey, who is now positioned to continue the family’s legacy.

From the Client

“OneAccord’s expertise was invaluable in navigating the complexities of selling our business to our son. They helped us achieve a sale price beyond our expectations while ensuring Torey could succeed without undue financial pressure.”

— Lee Redfern, Founder, Redfern Concrete Construction

Why This Case Matters

Redfern Concrete Construction’s experience highlights the importance of strategic planning in family business transitions. By addressing valuation, tax implications, and succession dynamics, businesses can achieve favorable outcomes that honor both the retiring owners’ legacy and the successor’s future.