Exit Strategies Insights

Industry insights, knowledge base and announcements for business owners and professional advisors

Exit Planning Insights

February Seminars: Maximize the Value of Your Business

Now in its 9th year, Exit Strategies’ Maximizing the Value of Your Business seminar delivers essential and practical information to business owners who would like to sell for top dollar in the next 1-5 years.  It is not too early to plan the successful exit you deserve! In this fast-paced workshop, business owners learn … The elements of an effective exit strategy Types of buyers and what they value Business valuation nuts and bolts How …

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Your December Checklist for a 2015 Business Sale

Thinking of selling in 2015? Here are ten actions you can take this month to achieve a higher price in the New Year.  Finish 2014 strong.  Buyers and their lenders will want to see your last full fiscal year profits on an uptick. Ship and invoice everything you should this month. Resist artificially pushing income into next year to reduce your tax bill.  Don’t go nuts prepaying expenses like monthly service contracts, retainers or rent.  Review the functional …

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Your Buy-Sell Agreement – Keep It Current Before It Costs You Money and Grief!

Buy-Sell agreements (BSA’s) are an essential, and often overlooked, element in allowing shareholders to realize the value of their investment in a privately held company. The BSA’s purpose is to a) provide a market for ownership interests, b) establish the price and terms for these interests, c) specify a buy-sell process that is orderly and reasonable, and d) specify financing should a “trigger” event occur. There are several reasons this contract among owners can fail. …

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Don’t be a Victim of Seller’s Remorse

More business owners than you’d think second-guess themselves within a year of selling the business.  In my experience as an M&A advisor and business valuation expert, the main reason for the failure of business exits is the seller’s lack of planning on how and when to exit.  Too many owners never plan and simply wait until something happens that essentially forces them to sell, such as health issues, marital stresses, poor business conditions, or when “burnout” becomes …

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Ingredients of a Successful Business Sale

Going to market when you and your business are ready to sell and market conditions are right provides the best opportunity to maximize results. Let’s look at how these three ingredients combine: You, the Owner The Business itself The Market Having these ingredients come together at the same time requires planning. You can prepare personally and you can prepare your company for sale.  You can’t control the market, but you can choose market timing. So, basically, it’s up to …

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Is your company an add-on candidate?

Most business acquisitions by private equity firms have been “add-on” deals lately. In private equity jargon, a large company acquisition is usually a platform acquisition, and a smaller company acquistion is most often an add-on  (or “bolt-on”, or “tuck-in”) acquisition. Add-on acquisitions are complementary to and synergistic with an existing platform company held by a private equity firm. Platform acquisitions dominate the headlines and represent most of the dollar volume, but add-ons now represent the majority of …

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Please don’t tell me liquidation is my best exit option!

While the typical premise of value in valuing an operating business for a sale/acquisition or exit planning is as a going concern, occasionally, facts and circumstances indicate that an owner would be better off liquidating his or her business.  Unfortunately, this often comes as a shock to an owner who has spent years working in and building a business with the expectation that it can be sold for enough to provide a significant nest egg …

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Be Prepared!

“Be Prepared” is the Boy Scout Motto that has served young individuals and their character development in over two hundred countries since 1907. It can also be an effective mantra for a business owner who will engage in marketing and selling a business.  A well prepared business owner plays a vital role on the transaction team and helps ensure maximum value to the shareholders and a smooth transition of ownership. Critical components of “Be Prepared” for …

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The ESOP Solution

We are often asked about Employee Stock Ownership Plans (ESOPs) as an exit strategy. For business owners who are curious about the ESOP exit option, here are links to two recent articles that discuss ESOP basics and some of the pro’s and cons of ESOPs. Both articles are from recent issues of MERGERS & ACQUISITIONS magazine, which is published in partnership with the Association for Corporate Growth, in which I am a member. Recaps Turn to …

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Ten Commandments of a Successful Exit

The average person doesn’t realize that selling a company is often the most gut-wrenching transaction of a business owner’s life. They’ve just spent their life building the business, it’s their largest asset, and they have no training or experience in selling a business. With that as a backdrop, here are ten practical directives that will help you make better exit strategy decisions and achieve a more successful sale. 1. I shall plan ahead Why sell? …

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