Steve Smith was no different than millions of other baby-boomer business owners in that the thought of leaving his business was never far from his mind, no matter how far away his exit might have been. He daydreamed about transferring the business to his oldest daughter and perhaps to a member of his management team, yet he couldn’t gauge their passion for owning a business and hadn’t tested their management skills.
And, of course, they had no money.
Steve’s company was his economic and financial lifeline. Without its income, his ability to use the business to accum... Read More
First of all, Jerry Springer is 73 years old, holy smokes – just another example of how time flies. Anyway, I wanted to shed some light on what I would call the “dark underbelly” of exit planning. We most often focus our time and attention on the technical aspects of succession planning work – tax strategies, estate planning, valuations, transfer of ownership, etc. etc. All of these are incredibly important to the process to be sure, but they shouldn’t be focused on to the extent of ignoring t... Read More
Today, we discuss the essential elements of a plan owners use to transfer a business to insiders that keep the owner in control until he or she is paid the sale price. If you suspect that the children, key employees, or co-owners you would pick to succeed you do not have the funds to cash you out, consider the following 10 elements that make insider transfers successful.
Element 1: Time
A transfer to insiders takes time: time to plan, time to implement, and time for successors to pay the departing owner. Typically, the more time owners take to transfer the company, the less risk they incur and mor... Read More
In this issue, you'll find an outline of the primary reasons owners choose to exit via sales to third parties. Before you consider that option, you and your company must be prepared for the sale, and the M&A market should be favorable. Creating a written plan that minimizes taxes, allows you to focus on company profitability, and holds your advisors accountable for achieving your goals is key to the successful third-party sale.
If you think that planning for the biggest financial event of your life is a good idea and prefer an approach other than “wait and see,” what can you do to make sure your company is ready to sell when you decide the time... Read More
Anyone who has owned and then sold a home remembers the fun conversations you had with your realtor about the value of your property. It might have gone something like this:
You: “We think our home is worth A because our neighbor got B or because we are assessed at C or because we paid D for it 15 years ago and have spent $50,000 fixing it up over the years.”
Realtor: “We think your home is probably worth E, based on these data points.”
You: “Oh, uh-oh. That’s a little lowe... Read More
In this issue, we attempt to dismantle the most common objections owners make to undertaking the planning necessary to exit their companies successfully. Assuming we are successful in persuading you that Exit Planning not only helps your business while you are in it but also is the best way we’ve found to leave your company to the successor you choose, on the date you choose, and for the amount of cash you want, how do you, as an owner, jump into Exit Planning?
Excuses to avoid Exit Planning include the following:
1. The business isn't worth enough to meet my financial needs. When it is, I'll think about leaving... Read More
This provocative article reminds owners that buyers pay for business value—not for the selling owner’s expertise—and that Exit Planning is the process owners use to make themselves “inconsequential.” In addition to building value, Step Three involves protecting value and minimizing taxes.
In all likelihood, you are absolutely critical to the success of your business. Without you, there is no business.
We want to fix that.
With a little luck and a lot of hard work, we can help you become an Inconsequential Owner.
At some level, all owners understand that they will someday leave the businesses they have created. Let’s assume for a moment that you leave... Read More
via Cedar Valley Business News, Waterloo-Cedar Falls Courier
No one is born a CEO.
Chief executive officers come to their positions in a variety of ways, but being the boss is something many mid-size business owners never envisioned. So, instead of a business college, they often went to the school of hard knocks and got their education on the fly.
Advance Iowa offers them an alternative — get their education from experts and learn along with peers facing similar struggles.
“(CEOs) become so focused on trying to take care of everyday issues that it’s hard for those owners to get a lot of other input. They may get input from employees or family membe... Read More
“3-5 years Dan, that’s my timeline.”
(2 years later)
“3 to 5 years, Dan, that’s my timeline.”
You’ve built this business up over a lifetime and now the other forces of your life (your spouse, kids, and maybe your own mortality) are starting to push you in a new direction. You know, that one we refer to as “exit stage left." It sounds pretty final, so you put it off; it’s the human thing to do.
In this realm, you have... Read More
Team-work /tem,werk/ noun | defined as: cooperative or coordinated effort on the part of a group of persons acting together as a team or in the interest of a common cause.
This term applies to the mission of Advance Iowa and its interest in working with economic developers throughout Iowa for the benefit of small and medium businesses. The goal of UNI Advance Iowa is to work with businesses that are cornerstones to the communities throughout Iowa in keeping Iowa ownership and businesses growing! It is good for everyone involved!
George Lake, Bucannon County Economic Development Director comments, “I see my role in economic developmen... Read More