As an owner who is thinking about selling your business to a third party or transitioning the ownership to family or other insiders, it’s important to educate yourself about the process and work with professional advisors who specialize in business transfers and have the expertise to manage all facets of your transaction.Read More
It’s all taken care of! Famous last words, right? Well, unfortunately in this case, they truly were. This second-generation family business employed two grown sons (third generation) and many other employees. The father/owner, at age 65, held the professional tradesmen licenses and had taken over the company from his dad 35 years prior. This business had provided for the family for many years and had a great reputation for quality work.Read More
There are five main factors, three internal and two external that can influence the value of a privately held company:
The ideal business transition is the one that most closely matches the transitioning owners’ vision and goals, both financial and non-financial. One of the key steps to developing your business transition plan is calculating how much money you will need from your business transition, which we call the “Wealth Gap” in our book, Cashing Out of Your Business – Your Last Great Deal.
Many businesses have multiple shareholders or “partners” from inception and others add them over time as the business grows. Operating successfully with multiple partners can be tricky and when it comes time for partners to begin leaving the business, things can get complicated. Each partner needs to determine how and when they will exit the business and how much money they will receive as they transition out. No easy task! Here are some tips for successfully navigating partner ownership transitions:
If you’re like most business owners, you have invested some (or most) of the best years of your life and most of your financial resources in your business. And you have taken precious little time off to focus on yourself. Once you started your business, your other passions likely fell off the radar, and now that you have been at it for several years, you are probably not used to thinking about yourself independently from the business. Your identity and that of the business may now actually be one and the same, which can be dangerous when it comes to your business transfer. If you’re not prepared for the transition, it could lead to a feeling of emptiness and loss.
One of the most important factors of a successful family business transition is planning and executing the “hand-off” to the next generation. It is essential for the next generation to fully understand all aspects of the business, including day-to-day operations, company finances, long-term business cycles, how to hire and manage employees and how to negotiate relationships with partners and vendors just to name a few. At the same time, the successors also must learn to find innovative ways to maintain profitable growth in the face of competition and the ever-changing business environment. If you think about it, it’s a pretty tall order. This is why preparing your family members for a business transition and developing a solid succession plan is so important.
If you have ever sold your home, you are probably familiar with the term “staging.” Staging is the process of giving your home curb appeal, depersonalizing it, de-cluttering it, making needed repairs, and putting it in its best condition—all in all, making it SHINE! Top realtors agree that the first impression is crucial; after all, there is only one first impression. You have to entice potential buyers to take a closer look inside. Better yet, you want them to fall in love with your home and offer their highest price on your terms.