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
Businesses with a sole owner range from the local pizzeria to multi-billion dollar enterprises. What will happen to the business in the event of the premature death or disability of the owner? In the case of very small businesses which are wholly dependent on the efforts of the owner, the answer is the business will close. In the case of… Read More
Financing guaranteed by the Small Business Administration is widely misunderstood – and thereby underutilized – by business owners. In 2016 the SBA 7(a) program was authorized for $26.5 billion but only $24.5 billion was actually deployed. The definition of “Small Business” for these purposes includes companies with as many as 1,000 employees in many industries. We will focus here on… Read More
Many business owners who want to sell their businesses have not engaged in tax planning prior to the sale. We will briefly discuss both sales to third-parties and sales to insiders – i.e. key employees or family members. Sales to Third-Parties There are two basic forms of the transaction – a sale of the stock or a sale of the… Read More
*( Less than 50 employees and less than $5M in sales) Owners are caught up in day-to-day business planning and unless there is a crisis spend their time focusing on new sales, customer relations, and managing operations. Sometimes, the first business “crisis” these owners face is when they contemplate life after business. Then a flood of questions arises – How can I… Read More
Sellers, in preparing their businesses for sale, want to make the business as attractive as possible to a buyer. Change of ownership is a particularly critical moment for the business and a buyer will be particularly sensitive to the possibility of losing key employees during the transition period. For a buyer, this will be a large perceived risk. Additional risk… Read More
