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
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
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
*( 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
I must confess that I am a bit of a procrastinator when it comes to writing my monthly feature articles for Business2Business Magazines. It appears that I am not the only one with this characteristic. My clients think about leaving their businesses all the time, but procrastinate about actually doing something to prepare for that exit. My clients are hard-working,… Read More
