Giorgio Armani’s Succession Plan and the Art of Selling a Legacy
Valuation Vigilance: Planning the Sale of a Business with Purpose and Protection
When Giorgio Armani passed away, he left behind more than a fashion empire—he left a roadmap for how to sell a business with precision. His will outlines a phased sale: a 15% stake within 18 months, followed by up to 54.9% over five years. This staged approach allows for valuation benchmarking, using the initial minority sale to establish a market-tested price. By naming luxury giants like LVMH and L’Oréal as preferred buyers, Armani’s estate signals an intent to maximize value through strategic alignment, not just financial return.
This isn’t just succession—it’s valuation strategy in motion. And it offers a timely reminder: selling a business requires more than a good price. It demands a disciplined process that protects stakeholders and preserves legacy.
What Boards Should Prioritize in a Sale
Whether you’re selling a legacy brand or a local enterprise, the principles remain the same. Boards must treat valuation as a living part of the deal—not a static number.
- Get a Fairness Opinion—and Use It A third-party valuation shouldn’t be a rubber stamp. It should inform negotiations, protect directors, and guide shareholder communications.
- Disclose the Deal Process Transparency builds trust. Shareholders deserve to know how the deal came together—who was involved, what alternatives were considered, and why the final offer was accepted.
- Engage Minority Holders Early In private sales, minority shareholders often feel sidelined. Proactive engagement can prevent disputes and reinforce fiduciary integrity.
- Avoid Rushed Timelines Compressed deal schedules raise red flags. Build a timeline that allows for thorough diligence, board review, and member input.
Lessons for LLCs: Don’t Skip the Valuation
LLCs often operate informally—but when it comes to high-stakes transactions, informality can be costly. Armani’s structured approach offers lessons for LLCs navigating their own exits.
- Treat Minority Members Fairly Passive investors and minority members have legal standing. Breach of fiduciary duty claims often hinge on valuation disputes.
- Use Buy-Sell Agreements Wisely These documents should clearly define how valuations are determined and what rights members have in a sale scenario.
- Don’t Skip the Valuation Even in a private transaction, a third-party valuation protects against claims of self-dealing or undervaluation. It’s not just prudent—it’s protective.
Final Thought
Selling a business isn’t just about price—it’s about process, timing, and credibility. Giorgio Armani’s exit plan wasn’t just elegant; it was engineered to preserve value and protect stakeholders. Whether you’re a board member or an LLC manager, the lesson is clear: valuation isn’t a moment—it can be a mindset.
To learn more about selling a business in Washington State, please contact Beresford Booth at info@beresfordlaw.com or by phone at (425) 776-4100.