Faced with a barrage of bad economic news, business owners wonder first how they will survive in what promises to be a tough environment and then, if they’ll be able to leave their companies when they planned. Before we can help owners to answer that question, let’s look at three options: (1) hunker down until [...]

“I can’t play golf every day.”
“My wife wants to see more of me — but not at every breakfast, lunch, and dinner!”
“What do other ex-owners do after they’ve sold out?”
Failing to answer these concerns can create vacillation, reluctance, and ultimately, an unwillingness on the part of many owners to proceed with planning for their business [...]

What is a good way for you to get top dollar for your business?
First, consider selling to an outside third party, not to an insider such as a child, key employee or co-owner. Outside third parties typically have the cash and the ability to pay a higher earnings multiple for your business.
Secondly, proceed through planning [...]

“When a man does not know which harbor he is heading for, no wind is the right wind.” So said Seneca almost 2,000 years ago. Today, speaking to business owners he might likely say, “Exit Planning for business owners must start with knowing your exit goals and objectives; otherwise, failure may be inevitable.”
Why is Seneca’s [...]

If there is no one to buy your business, you shut it down. In a liquidation you sell off your assets, collect your accounts receivables, pay of outstanding debt, and keep what’s left, if anything for yourself.
The primary reason to consider liquidation is that a business lacks sufficient income producing capacity apart from the direct [...]

You might begin the business transfer process with the thought that a sale to a key employee, co-owner or family member is the path to maximum cash on departure. This is very seldom the case. With proper preparation, more often than not, you can maximize the net dollars you receive by selling to a third [...]

One of the advantages of having other owners in your business is that they can be your means to retirement.  A common retirement planning technique is to take on a younger minority partner while you are still active. Upon your retirement, the younger owner will purchase your remaining stock.
This can be advantageous because the younger [...]

We talked about the importance of determining your departure objectives as a first step to leaving your business under most favorable conditions. One of the goals outlined was deciding to whom you will transfer the business: children or family members; key employees; co-owners; or a third party known or unknown.
It is important to appreciate the [...]

I came across some recent research showing 40% of small business owners would like to exit their businesses right now.  Not surprising when you consider that the “boomers” are rapidly approaching retirement age.
What is surprising is that only 7% of small business owners have any kind of formal business exit plan in place - so [...]