Request a Strategy Call and we will get in touch with you
Sell a Business Insights
The ESOP Solution
July 30, 2014 / in Exit Planning, Sell a Business / by Al Statz
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 …
Is Your Business Prepared for Sale?
July 23, 2014 / in Sell a Business / by Jim Leonhard
Serious potential consequences await owners who neglect to prepare their business, and themselves, for a future sale or transfer. Here are ten exit planning mistakes to avoid: The business experiences a sudden, catastrophic loss and all of the owner’s financial eggs are in the business. A perfect buyer suddenly appears and makes a fantastic offer, but the owner cannot consummate the sale due to prohibitive (and avoidable, with planning) tax cost and a lack of …
Ten Commandments of a Successful Exit
July 17, 2014 / in Exit Planning, Sell a Business / by Al Statz
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? …
Selling a Business Using a CRT
July 10, 2014 / in Exit Planning, Sell a Business / by Al Statz
When a business owner decides to sell or transfer ownership, the owner often thinks about achieving the following three post-transaction objectives: 1) being financially independent, 2) taking care of family members, and 3) possibly a donation to a favorite charity. All three of these objectives can sometimes be met by setting up a Charitable Remainder Trust (CRT) – the subject of a recent article by my friend and colleague Darrell V. Arne, CPA, ASA, CM&AA covering …
What is an Earn-out?
June 26, 2014 / in Acquire a Business, Sell a Business / by Al Statz
An earn-out is when part of the consideration received for a business is based on future sales or earnings. Earn-outs usually come in to play in business acquisitions when a business has high risk factors, or when non-linear growth is reasonably expected, or when there is a significant gap in the price expectations between the buyer and seller. In all cases the parties share the risk and reward of future performance. Bridging a Price Gap An …
Private Equity Fact and Fiction
May 20, 2014 / in Exit Planning, Sell a Business / by Al Statz
Private equity groups are active acquirers of closely-held lower middle market companies here in California. Private equity consists of individuals, families and institutional investors that make passive minority investments in partnerships that invest in, provide debt financing for, and operate private companies. Republican presidential candidate Mitt Romney’s run for the presidency in 2012 brought sudden attention to the private equity world. Romney, who had been the founder and CEO of private equity firm Bain Capital, didn’t go …
Is it Better to Own or Lease your Business Facility?
May 5, 2014 / in Exit Planning, Sell a Business / by Bob Altieri
For some businesses, specialized building construction is required — hotels, car washes, wineries, some food processing facilities, etc. — making the business and real estate nearly inseparable, and making owning the real estate almost mandatory. However most enterprises need a more generic commercial, industrial or retail property to support business operations, and the decision to own or lease real property is more elective. Companies that lease their facilities avoid the sizable cash investment associated with …
Is it too early to have my business valued?
April 22, 2014 / in Business Valuation, Sell a Business / by Roy Martinez
A potential client has been dragging his feet on having a business valuation done. Most recently, he asked, “Is it too early to have my business valued?” A better question may be, is it too late? This baby boomer wants to exit his business and retire in the next 2-5 years. He said, if the business isn’t worth much, he would probably hold on to it and transition management of the business to a group …
Why do business owners hire an M&A broker?
April 12, 2014 / in Acquire a Business, Business Strategy, Sell a Business / by Jim Leonhard
Recent clients “Jane and John Doe” were satisfied with the market value estimate of their manufacturing business, as determined by the independent valuation we prepared. Armed with this essential piece of information, they were ready to sell the business they had founded and grown with much effort over many years. John thought they should try to sell the business themselves. After all, weren’t they the best salespeople for their business? And why should they share …
For Historic Mountain Lodge, It’s Not the End of the Rainbow
February 13, 2014 / in News, Sell a Business / by Bob Altieri
The historic Rainbow Lodge in Soda Springs, California, which was in receivership and non-operational for almost a year, has been acquired. This 33-room lodge on the Sierra’s western slope near Hwy 80 was originally built as a stagecoach stop in the 1800’s. In the 1990’s, the owner of the nearby Royal Gorge Cross Country Ski Resort bought it with the intention of providing lodging for skiers. The building is currently undergoing substantial renovations and the business is expected to re-open …
Exit Strategies Group, Inc. is a leading provider of business sales and acquisitions, business valuations, and exit planning services for family owned and closely-held companies since 2002.
DRE #01878920
Member of
