Blog Library

How to Plan a Successful Business Ownership Transition

Posted by Kathy Richardson-Mauro on Thu, May, 12, 2016 @ 03:51 PM

“While 54 percent of business owners plan to leave their business in the next 10 years, 72 percent [of those] have taken no exit planning action,” according to a recent study. For most business owners, their business is by far their largest asset, and not properly planning for its transfer can put them, and their employees and family members, at risk. Being prepared is the key to success. It starts with owner education, allowing enough time to plan, seeking the best advice, and creating a Business Ownership Transition Plan (BOTP). A BOTP is a comprehensive written document that outlines how and when the ownership of a business will be transferred to others, either internally or externally, in order to achieve the owner’s long-term financial and personal goals.

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Topics: Business Ownership Transition Planning, exit planning, selling a business, business ownership transition, selling your business, selling my business, deal structure, business transition plan

3 Common Financial Mistakes That Can Decrease the Value of a Business in the Eyes of a Buyer

Posted by Jane Johnson on Wed, May, 04, 2016 @ 04:13 PM

Most owners planning for retirement are dependent on the sale of their companies to provide the cash needed to finance the next phase of their lives. A substantial amount of wealth is trapped inside the illiquid asset that is their business. And the fact is that a majority of owners will have to boost the value of their businesses before they transition them to new owners or they will not net enough money from the transition, after taxes and fees, to fund the rest of their lives.

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Topics: business transition, selling your business, increase the value of your business, selling to an outsider, value of a business, planning for retirement, financial mistakes

Advisor Webinar: Leadership Development for Family Business Successors

Posted by Kathy Richardson-Mauro on Tue, May, 03, 2016 @ 03:16 PM

We would like to invite you to join us for our upcoming BTA Transition Partner Program webinar, The Importance of Strategic Planning and Leadership Development for Next Generation Successors in Family Business Transitions, on Friday, May 13 at 2 pm EST. During this webinar, we will be joined by Marvin L. Smith, President of Deliberate Synergy. We will be discussing the importance of strategic planning and leadership development for next generation successors in family business transitions.

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Topics: free webinar, succession planning, Business advisors for family business, leadership development, business advisor webinar, family business successors

Would a Private Equity Firm Be Interested in YOUR Business?

Posted by Kathy Richardson-Mauro on Tue, Apr, 26, 2016 @ 08:23 PM

There are several different types of buyers in the business marketplace, including strategic buyers that are able to realize synergies through the purchase of your business, and financial buyers, such as private equity firms (PEFs) that are looking to invest in business to get a return on their money. While some financial buyers will want to buy 100% of your business, others will buy a controlling share and allow you to maintain some ownership as well so you may get the proverbial “second bite of the apple” when the business is sold again in the future.

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Topics: Selling Your Business Externally, selling your business, selling my business, selling your business to a private equity firm

Financial Considerations When Selling Your Business to a Third Party

Posted by Jane Johnson on Thu, Apr, 21, 2016 @ 10:14 AM

When business owners consider their selling options, the financial considerations are usually the focus because most owners believe that the higher the sales price, the better. In fact, most business owners have never stopped to consider how much money they really need to net from their business sale to achieve their financial goals. They have never done the math.

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Topics: Selling Your Business Externally, selling my business, process of selling a business, selling my business to a third party, selling to an outsider, selling my business externally

14 Things You Need to Know About Selling Your Business Externally

Posted by Kathy Richardson-Mauro on Wed, Apr, 20, 2016 @ 10:14 AM

Most business owners think that they simply will sell their business to a third party because they don’t have an option for selling their businesses internally and/or they think it will net them the highest dollar amount. While selling externally is often attempted, it is not often achieved. In fact, less than one in four of the businesses that go on the market for sale actually sell. Understanding the selling process, what buyers and lenders are looking for, and how to position the business can improve owners’ chances of success. But this takes time and effort.

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Topics: Selling Your Business Externally, taxes, selling my business, selling your business in 2016, selling to a private equity firm, taxes on sale of business, selling your business to a third party

Advisor Webinar: Planning For Successful Family Business Transfers

Posted by Jane Johnson on Fri, Apr, 08, 2016 @ 11:51 AM

The number of business owners who will be attempting to transition out of their businesses in the next 5-15 years is staggering, and those who are prepared with a planned transition in place will have a distinct advantage over those owners who have left their largest transaction to chance. 

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Topics: family business planning, Family Business Transfer, Business advisors for family business, business advisor webinar, family business transition

Tips for Avoiding Common Retirement Challenges while Planning for Your Business Transition

Posted by Jane Johnson on Mon, Apr, 04, 2016 @ 05:46 PM

“No business task seems more difficult than slowly disengaging from the thing that gives you your identity, the clients you love, the routine you've established, and the team you've been integral to for many years.” This quote from an article in Journal of AccountancyRetirement: Avoid the pitfalls and plan for the possibilities” is so true and something that we come across frequently with the business owners we work with. Just as we discussed in When It’s Time to Step Away from Your Business, getting used to the idea of letting go or stepping away from your business may be the hardest thing for an owner to do.

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Topics: business transition, business owner retirement, exiting planning, planning business transition, business owner identity, step away from business, retirement challenges, Journal of Accountancy, planning for retirement

When It’s Time to Step Away from Your Business

Posted by Kathy Richardson-Mauro on Tue, Mar, 29, 2016 @ 05:36 PM

Most business owners have dedicated the vast majority of their adult lives to building their businesses—committing years, sacrificing little league games, vacations, tee times, and foregoing sleep to follow their passions and achieve their goals. They have succeeded in creating jobs, new inventions, and a comfortable lifestyle for themselves and their families, giving back to their communities, and contributing to the local and national economy.

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Topics: baby boomers, stepping away from your business, planning for a business transition, step away from business

The Multiplier Effect: Small Adjustments Make a Big Difference in the Sale of a Business

Posted by Jane Johnson on Thu, Mar, 24, 2016 @ 02:00 PM

For business owners who may be thinking about planning a business transition in the near future, it is important to know how personal and one-time expenses in the business will impact the value that they will receive. Because the business is worth only what a future owner expects to receive in cash flow from owning the business, it is important to consider the types of expenses an owner runs through the business and how those should be documented for the future owner in order to calculate the true future cash flow.

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Topics: Selling Your Business Externally, business value drivers, EBITA, multiplier effect