Posts Tagged ‘business transition’

What Legacy Do You Want to Leave?

Friday, April 12th, 2013

Last year, I was consulting with a client who owned a business that was worth over $20.0 million. He said that one of his advisers told him “Why waste your time and money developing an exit and succession plan? You will be dead and won’t care and let others take care of it after you die.”

I guess that’s a good plan – if you don’t mind the chaos it creates for your family members and if your legacy is not important to you. (more…)

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How Do You Prepare to Sell Your Business?

Wednesday, February 20th, 2013

Do you plan to sell your business someday? Although you may not think of your business as a traditional retirement plan, it may be the largest asset you have to “cash in” upon retirement. There are many issues to consider when thinking about selling your business.

Timing of Business Sales

One of the first things a potential buyer is going to ask for is historical financial statements. If your most recent financial statements show healthy profits, you are more likely to be able to justify a larger selling price than trying to sell your business after several less profitable years.

Current developments in your industry may also impact the timing of when you want to sell your business. Do you anticipate new government regulations that could impact your business? Or is there a trend of consolidations in your industry? If so, this may increase the value of your business.

(more…)

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How Do You Choose a Business Exit Strategy?

Thursday, January 17th, 2013

Exit strategies are the options that you have to leave your business.  There are only a few exit strategies that Ohio business owners can choose from and each will provide you with a different level of proceeds when you leave. All strategies will require planning and time to implement.

It’s never too soon to start planning your exit. You will eventually leave your business, and it’s better to do so before a life-changing event forces you out. The sooner you plan, the more options you will have. (more…)

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How Do You Protect the Value of Your Business?

Friday, August 31st, 2012

One of the most basic individual investment principals is the concept of diversification. As an investor, diversification can protect you from a large drop in your portfolio due to the poor performance of any one investment.

If you own a business, the business value is most likely more than half of their entire net worth.  You cannot simply call your investment advisor and quickly sell a part of your business to diversify.  It is possible to sell a partial interest in a business, but this is not available to all business owners and requires significant amount of planning.

So, what can you do to protect your net worth from dropping from a large decrease in the value of your business?  (more…)

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Is Now the Time to Gift a Business Interest?

Tuesday, July 10th, 2012

2012 Gift Tax Exemptions and Business Planning

As you go about your day-to-day work within your business, you might not be thinking about what will happen when it’s time for you to leave the company. However, recent changes in the gift tax laws have created a window of opportunity that could allow you to transfer more of your business interests for less tax liability than at any other time in history. (more…)

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What’s Your “Get Out of Business” Plan?

Friday, May 18th, 2012

You’ve worked hard to build your business and probably can’t imagine a time when it won’t be a major part of your life.  But, someday, you’ll approach retirement and you’ll want to spend more time enjoying your life and less time balancing your books.

Maybe you’ll want to leave your business to your daughter.  Maybe you’ll want to sell it and cash out.  Either way, business transition doesn’t just happen.  It isn’t serendipitous.  You need a “get out of business” or succession plan. (more…)

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Do You Need a Business Prenup?

Tuesday, May 15th, 2012

About 25 percent of businesses fail within the first year, according to Small Business Trends.  Only 44 percent survive for four years.  What if your business doesn’t make it?

If you don’t have a buy-sell agreement, things could get hairy. Or if you developed one in haste and never update it, the buy-out probably won’t be fair to all parties. The hassles from litigation that result from faulty buy-sell agreements could last for years and negatively impact your business. (more…)

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How can you protect your family business?

Tuesday, March 13th, 2012

Did you know that research shows that young men and women today will likely have more spouses than children? Unfortunately, that could have a huge impact on your family business. (more…)

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How do I keep my succession plan on course?

Thursday, January 13th, 2011

The future of your family business might not be in the front of your mind as you go about your day-to-day routine. But if you have a defined plan that everyone is aware of, you can more effectively prepare for a successful transition when the time comes to put it into place. (more…)

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Where does everyone stand in your business succession plan?

Wednesday, December 1st, 2010

When you own a family business, it’s easy to get caught up in the day-to-day activities. And it can be easy to put off having those important, strategic discussions with your family about the future of your business. However, communication between you and your family becomes an essential ingredient of a successful business transition. (more…)

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Have you included a business valuation in your succession plan?

Friday, November 5th, 2010

In an earlier post we discussed the important step of making the decision to begin the succession planning process. Once you have made the decision to begin the process, knowing the value of your business is the second crucial step in the transition plan. (more…)

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Is it time to start planning the sale of your business?

Friday, July 23rd, 2010

Every business strategy should include an exit plan for leaving the business. This can hinge on the owner’s personal financial and estate planning efforts, and a successful transition depends on many factors. (more…)

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