|Sell the Business||Develop an Exit Strategy|
|> Advisor motives rule
> Advisors are “transactional”
> Goal is “sale of business”
> Process includes “finding buyers”
> Sales process at “mercy of market”
> Outside party necessary for deal
> Company is “shopped”
> Negotiations center around “price”
> Large advisory fees and taxes
> Company sale is main compensation
|> Owner motives rule
> Owners are “relationship based”
> Goal is to achieve business owners’ stated motives
> Successors/buyers are founded or “created”
> Transfer process is controllable
> “Internal” transfers considered with external ones
> Company examined for various transfer options
> Negotiations center around agreeable transfer
> Taxes and fees can be controlled and reduced
> Personal and corporate objectives drive process
70% of private business owners report that their business is their primary source of income; yet, only 20% of small businesses are successfully sold to an outside buyer.
Over the next months, I plan to share some thoughts and disciplines around business plans for exit strategies, employee retention during ownership transition, selling your business to the right buyer and other relevant subjects around eventually exiting your business. It's my hope that you will find these tools helpful, whether you are a “get me out now” business owner who is feeling the burn or, an "exit over time“ owner who is just thinking "how do I go about selling my business?"Read More...
Someone is sitting in the shade today because someone planted a tree a long time ago. - Warren Buffett
Exit Planning is a process of controlling a retirement strategy. It's about Reducing Risk, Preserving Wealth and Maximizing Value.Read More...
If you are the adult child of aging parents, you may find yourself in the position of someday having to assist them with handling their finances. Whether that time is in the near future or sometime further down the road, there are some steps you can take now to make the process a bit easier.
Mom and Dad, can we talk?