Near the end of 2008, we noted that the economic downturn had forced many owners to postpone their plans to exit their companies. We then looked at the several actions owners could take to respond to that delay:

Ride out the storm doing one’s best to protect value.
Use the time to build business value.
Avoid the delay [...]

“Why do I need to create multiple entities to protect my assets?” Steve Pierce, owner of Pierce Floral Shops, asked. “I already have all of my business interests in a Limited Liability Company. Doesn’t that protect me and my business?”
The answer provided by his lawyer was about what you would expect. “Yes. And no.”
Putting all [...]

We have all heard the old proverb that it’s dangerous to put all of your eggs in one basket.” But does the proverb apply in the world of business ownership? Specifically, is it a valid warning or just a worn-out cliché? It seems to make good sense to concentrate all of your business effort and [...]

Previously I outlined the four characteristics of a successful Employee Incentive Plan. Namely, such plans should:

Be specific, not arbitrary, and be in writing;
Be tied to performance standards;
Make substantial bonuses; and
Handcuff the key employee to the business.

Here I will focus on the last characteristic; handcuffing the key employees to the business. The goal of the handcuff [...]

Too often, owners discover that the compensation plans they’ve put in place for key employees are sadly inadequate only when those key employees leave their companies for greener pastures. The departure of one or more of these key employees can not only complicate your daily business life, but it can slam shut the door on [...]

What’s the point?
“I want to install a bonus plan for my key employees to reward them for their performance.”
“One of my best employees left last week for a company for more money. I think I’d better install a good bonus plan to stay competitive in the marketplace.”
These are just a few of the comments I’ve [...]

We talked briefly about how owners can and do build the value of their companies — even during a recession. Some owners will take that approach, but all owners should be, at a minimum, protecting the existing value of their companies.
There a few of the ways you can do exactly that by concentrating on specific [...]

When you started your business, you may have had issues on your mind other than choosing the best corporate entity form for an eventual sale. Now that you are thinking about your exit, however, entity choice (C or S corporation) has become critically important. That’s because selling your company’s assets inside the wrong entity can [...]

To engage in Exit Planning, you must have a business to exit. Exit Planning assumes that the better the business, the easier and more successful the exit. Exit Planning also assumes that good businesses are not only profitable and well managed, but that they are protected from liability risks. Failing to protect your business value [...]

A number of years ago, I met with Diana Duff, the owner of Major Machining, Inc. (MMI), a machine shop. She wanted out. I suspected that her severe case of “early onset burnout” was due to the departure of her three-person management team six months earlier. These employees had not just left the company, they [...]