All posts in “Exit Planning”

Fiscal Fitness Checklist: Get Ready for ’19 Now

Running your business requires you to manage dozens of tasks each day, and delivering a quality product or service to your customers is the first priority. Some owners become overwhelmed by daily business operations and neglect their financials, which may cause big problems down the road. Use this list to evaluate your financial fitness and to keep your business on track.

An Example – Getting to Fiscal Fitness

Assume, for example, that Julie owns and operates WoodCreations, a customized furniture manufacturer that generates $10 million in sales each year. The company buys wood and other components parts to create high-end furniture.  What to do? Where to start?  Good thing we have a handy 15 point plan…  Continue Reading…

Due Diligence: What is It?

Sometimes when thinking about business concepts it’s helpful to think in terms of consumer concepts.  Due diligence – a term you’ll start to hear a lot when buying or selling a company- is a great example. Continue Reading…

#ICYMI Dan Doran Published in Financial Advisor Mag

If you’re a financial advisor you’ve likely spent ample time with clients that are focused on the more liquid portions of their portfolio… and ignore the elephant in the room.  By ignoring their operating company as a component of their portfolio the entrepreneur is potentially jeopardizing their retirement.

Check out Dan’s latest writing on the topic in Financial Advisor Magazine.

Dan writes “Financial advisors have the unique perspective on a business owners’ personal financial picture, but not necessarily an in-depth understanding of a company’s value. The entrepreneur’s business interests can be complex and difficult to work into a comprehensive financial plan.  Pairing an accurate assessment of a business’ Fair Market Value with your financial planning process can yield deep insights for entrepreneurs… and deepen client relationships with advisors.”

 

Learning From the Smart Money: What VC’s Ask Startups (And Good Stuff Generally)

ICYMI – Article originally appeared in 2015…. updated and revised for 2018!

While getting my daily dose of Quora this morning, someone posed the question “What are the Top 5 Questions a VC should ask a startup?”  Lots of good responses are in there, but Patrick Mathieson @ Toba Capital really had a great response.(Really suggest you head over to read directly)  While Patrick’s response is geared towards the startup / VC world, his response really has broad application across mature companies as well. Continue Reading…

When Do Earn-outs Really Work?

Here’s a universal truth about earn-outs: buyers love them and sellers hate them.   From a buyers point of view, what could be better?  We are deferring a portion of the purchase price and transferring risk back onto the seller.  From the seller’s point of view…. what a load of horse-hockey!   Continue Reading…

Do you know the value of your business?

We’re engaged by folks to perform valuations for a wide variety of reasons (litigation, death and taxes – you name it).  But some of the smartest and most successful business owners engage us simply to understand the value of their business now.     Why?  Because there are they are attuned to these 5 things that ultimately increase net worth and smooth the path to a successful retirement: Continue Reading…

5 Steps to Selling Your Business

Selling a business can be a stressful event.  Given the size of the asset – and likely it’s importance to your retirement – you can just imagine that there are going to be some white knuckle moments.  To reduce your anxiety level and increase your odds of success, here are five items to consider as you ramp up for a sale. Continue Reading…

Lenders Speak: “Getting the Deal Done”

Great event this morning!  Thanks so much to Mark Moore and Adam Nalls of Access National Bank, as well as Bruno De Faria of M&T Bank, for providing some great insights into the lending market.   We tasked our panelists with discussing what they are seeing in the market in terms of acquisition finance, challenges that they typically see related to deals, and to share some tips and tricks on getting the deal through underwriting.

A few take-aways from the event: Continue Reading…

Stop Asking for Easy

If you’ve ever sat through a talk I’ve given or, as a business owner, sat with me one-on-one talking about exit planning, there is a 100% chance that you’ve heard me talk about how hard it is to get it done right.  And I don’t say that to be negative – I’m talking about hard things because we have to embrace the difficult in order to do great things. Continue Reading…

Plan for Post Tax Proceeds

This won’t come as a surprise, but nearly every business owner who is approaching a sale is focused on realizing the highest possible price. What may come as a surprise though, is that few are focused on the right number. The question “how much can I get for the company?” should always be followed by “after taxes.”

There are a number of issues that are going to alter your post tax proceeds (which is why we always recommend embarking on an Exit Planning Process).  With an appraisal in hand, working with a qualified tax advisor is a great way to really drill down on how a transaction might look for you and affect your retirement.

So, what kind of tax are we talking about? Continue Reading…