In all likelihood, you are absolutely critical to the success of your business. Without you, there is no business and no business value. We want to fix that. With a little luck and a lot of hard work, we can help you become an Inconsequential Owner. Having said that, perhaps a bit of explanation is in order. All owners understand… Read More
Or to put it another way, what do you lose when you don’t plan sufficiently for the exit from your business, which is probably among the most significant financial and emotional transactions of your lifetime? Here are a few benefits to having a well designed Exit Plan: Exit Plan = Peace of Mind Who is the best successor owner of… Read More
According to Paul Simon, there are 50 ways to leave a lover. Not being as creative as Mr. Simon, we’ve only come up with eight ways for owners to leave their companies: (1) Transfer the company to a family member; (2) Sell the business to one or more key employees; (3) Sell to key employees using an Employee Stock Ownership… Read More
Business owners engaged in business exit planning are able to react more quickly to new events. Unfortunately, owners often fly without Exit Plans, co-pilots, or maps to help them when storms force them to alter course toward their business exits. If an unanticipated event arises (such as a deterioration in the economy), they shelve their exit planning thinking (and thinking… Read More
No experienced buyer purchases a company without knowing everything possible about it; this learning process is known as “due diligence.” Buyers like the process, and sellers do not. By viewing the opposing viewpoints on due diligence, you can understand why. Due Diligence – Buyer’s Viewpoint (1) The buyer assembles a team of experts including but not limited to an accountant,… Read More
Some owners make a choice not to sell their companies for very legitimate reasons. Among them are: 1. They still have enough fire in the belly to fuel their investment of time and energy in the business. 2. They are grooming interested family members or employees to one day assume the reins. Some owners, however, have businesses that are prepared… Read More
In working with business owners, we find that there is confusion about the meaning of terms which leads to a confusion about how to act. Here is our guide to clarify meaning so as to promote a more thoughtful path of action. Succession Planning Examples What are we to do in the event that our sales manager becomes disabled, or… Read More
Even though I see the numbers often, the findings still surprise me. 72% of small business owners do not have an exit plan and are not taking action to create one. (2016 Securian Financial Group) 54% of small business owners want to exit their business within 10 years. (2016 Securian Financial Group) Since 2013, for the first time and every… Read More
When valuing a closely held business, I frequently pose the following questions to the business owner regarding him/her and key employees: (1) What do you think the business is worth without you? When a business is sold, the selling owner does not go along with the deal. The seller might agree to work for the new owners for a limited… Read More
Note: Thomas Deans is the author of Every Family’s Business which the NY Times has listed as one of the ten books every business owner should read. Tom has been an owner of a very successful family business and currently spends much of his time speaking in the U.S. and Canada to groups of business owners. Tom is speaking at… Read More
