For What It's Worth: The Exit Strategies Blog

Insights, news and announcements for private business owners and their professional advisors

FOR WHAT IT’S WORTH: The Exit Strategies Blog

May 10th Seminar: How to maximize the value of your business upon exit.

Are you starting to think about retirement, but don’t know how best to transition out of your business? Consider attending a free breakfast seminar hosted by Exit Strategies Group and Exchange Bank on how to maximize the value of your business upon exit. This 1-1/2 hour seminar will answer the following questions: What are the […]

How Do I Sell My Personal Goodwill?

The concept of goodwill in a business sale is familiar to most business owners. The concept of personal goodwill (versus enterprise goodwill) is less familiar. Today I want to discuss what personal goodwill is, how it benefits the seller(s) of C-Corporation businesses, and what’s involved in selling it. The C-Corp Dilemma Sellers of small (up […]

What is my best exit option?

The answer to this question is different for every business owner depending on goals, facts and circumstances. When deciding the right way to exit business ownership, owners should understand and weigh all of their options. This article summarizes eight common exit options and their pros and cons. Some are more common than others. All options […]

Protect your Trade Name and Protect your Business Value

From my experience as an M&A Broker, I can tell you that your company’s trade name will be a valuable asset to most prospective buyers of your business.  Your trade name, which identifies your company’s brand and distinguishes its reputation with customers and suppliers, is worth strengthening and protecting if you plan to sell your company […]

What are the current expectations for interest rates?

One of the important factors that effect business value is macroeconomic conditions which include interest rates and the cost of capital. Business owners who want to know what is going to happen to interest rates should be aware of new leadership at the Federal Reserve. On February 5, 2018, Jerome “Jay” H. Powell took the […]

Don’t Let Key Employees Hijack Your Exit Strategy

In building a successful company, owners usually invest in hiring and developing managers and key contributors that become vital to the company’s effective operations. These people are considered “key employees”. When the time comes for the owner to exit his or her business, these key employees are usually valuable “assets” in the eyes of potential […]

Is Your Company an Employee Stock Ownership Plan (ESOP) Candidate?

When the circumstances are right, ESOPs present compelling competitive, financial, legacy and cultural benefits for selling shareholders, companies and employees. For business owners weighing their exit options, a leveraged ESOP may be feasible if the owner, the company and its employees possess a good number of these attributes: Owner Attributes: Owns 30% or more of corporate stock […]

Four Questions Your Buy-Sell Agreement Should Answer

A buy-sell agreement is a common contract between shareholders that both restricts ownership and facilitates the transfer of shares in a closely-held company. The other shareholders or the company become the buyers (marketplace) for what would otherwise be highly illiquid stock. Every buy-sell agreement should answer four fundamental questions: 1. Who is the purchaser? Generally, […]

Does My Buy-Sell Agreement Establish Value for Estate Purposes?

Buy-sell agreements that contain a clause that values stock at less than fair market value can be disregarded for tax purposes. It is important to consider the requirements of Internal Revenue Code (IRC) Section 2703 when developing an estate plan involving business interests in which 50% or more of the stock is family owned. Section […]

Current Market Multiples for Main Street Business Sales

Each quarter, The International Business Brokers Association (IBBA) and M&A Source together with Pepperdine Private Capital Markets Project and the Graziadio School of Business and Management at Pepperdine University publish a quarterly national survey of business brokers and M&A advisors called the Market Pulse Survey. Price multiples and other key metrics in the Main Street […]