I must confess that I am a bit of a procrastinator when it comes to writing my monthly feature articles for Business2Business Magazines. It appears that I am not the only one with this characteristic. My clients think about leaving their businesses all the time, but procrastinate about actually doing something to prepare for that exit. My clients are hard-working,… Read More
Business owners often have a sense of gratitude towards their employees – they understand that they couldn’t have built their business without those employees and want to see them have the opportunity to run the business and enjoy the fruits of ownership. Over 50% of my clients express an initial desire to sell to employees if the key employee group… Read More
Every once in a while, the IRS attempts to achieve large results without the benefit of legislation. Such a time is now, and the IRS has in its sights family business transfers. By far the greatest source of wealth in this country is business ownership. Bill Gates, Steve Wozniak, Warren Buffet, Ross Perot, Elon Musk, Michael Bloomberg, and Mark Zuckerberg… Read More
This is an excerpt from my interview with John Brown, founder of Business Enterprise Institute, Denver, CO. Read the full interview in October’s issue of Business2Business Magazines. Register to meet John when he speaks in Lancaster on 11/1/16. http://conta.cc/2c8ni2Y Do you find many business owners reluctant to leave? Do they not want to let go? John Brown: No, the great majority… Read More
When valuing a closely held business, I frequently pose the following question to the business owner: what do you think the business is worth without you? A similar question can be asked in regard to key employees: what is the business worth without your key employees? If they are critical to the success of the business their possible departure represents… Read More
There are no Mulligans when selling your business. Avoiding these “sins” will give you a good shot at executing a successful transaction. (1) Not Understanding the Value of Your Business Business valuation is not an exact science, but it remains an essential first step. A good business valuation will help you understand what your business looks like from the perspective… Read More
“All happy families are alike; each unhappy family is unhappy in its own way.” Leo Tolstoy Businesses controlled by a single family account for 50% of the U.S. Gross Domestic Product, include 35% of the Fortune 500 – both private and public companies – and are responsible for 60% of employment and up to 80% of the job creation in… Read More
In 1997, fans of the British rock group Marillion began an internet campaign to raise funds to finance a U.S. tour. The campaign, which was not organized by the band, raised $60,000. The band picked up on this idea and in 2001, funded the production and distribution of its album Anoraknophobia by preorders from its fans without the involvement of… Read More
Business owners looking to exit are often faced with the following dilemma: cashing out at a reasonable price is very important, but they don’t want their business swallowed up by a large industry player eliminating the identity of the business they have built. They are concerned that their employees are treated fairly as well. Business owners in this situation often… Read More
Why exit planning is becoming more critical than ever Currently there are about 28 million small businesses in the U.S.—those employing 500 or fewer employees. Of these, about 19 million have zero or one additional employee. Of the remaining 9 million, 3.5 million are owned by persons younger than 50 or older than 70. Therefore, 5.5 million businesses are owned… Read More
