Exit Strategy

Many people have started a business partnership (or limited liability company) with at least one other person. According to the IRS, that’s at least 14 million people. And that doesn’t include those who have started small corporations with other owners – which could easily double that figure. But according to AssociatedContent.com, up to 70% of […]

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It seems counterintuitive, doesn’t it, to prepare for the end when you are just beginning your business. But, as former President Dwight Eisenhower was known to say, “if you fail to plan, you plan to fail.” You need to have an ultimate goal when starting your business–whatever that goal may be. It could be: To provide […]

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As Seen In Enterprising Women Magazine You’re a busy entrepreneur. Every day, you whirl around like the Looney Tunes® Tasmanian devil, putting out fires, calming clients, and encouraging employees. There’s barely enough time to handle strategic planning, much less the kind of planning that involves answering that hard-to-face question: “what will happen to my business when […]

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Post image for Follow the ABCs of Buying a Business

Make sure you dot all your i’s and cross all your t’s before signing on the dotted line. Make no bones about it; buying a business is a big deal. Depending on whether you buy all or part of a business, your investment will likely result in the largest single asset you ever own. Don’t […]

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Here’s one last issue that Chris Mercer raised in his Buy/Sell Agreements book that I want to share with you. Once you have (1) decided when an event triggers a buyout, and (2) computed how you’ll fund the purchase, you need to determine who gets to make the purchase and how you’ll come up with the […]

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When business is going well, it’s easy to overlook the flaws and peccadilloes. Partly because we want to ride the prosperity wave. But when the wave crashes, and you’re dumped onto the beach with the seaweed, the broken shells, and the flannisters (you know, those plastic yokes that hold six-packs together), are you really shoulder-to-shoulder […]

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Post image for What to Pay in a Partner Buyout

When you’re thinking about business divorce, there are a couple of hot button items that come to mind. First, you want to know which events trigger a buyout.  The three D’s usually factor into the most well-drafted partnership agreements: death (pretty obvious), disability (perhaps less obvious–how would you define “disability”?), and dissolution (you and your […]

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Small business owners often look at their company as their retirement plan—and they may truly believe there’s a big pot of gold waiting for them at the end when they sell their company. Yet, very often, the entrepreneur hasn’t taken the steps to get the plans in place to build to sell (and put money […]

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So you’ve identified the exit events that can trigger a buyout. Yippee-ki-yay. Is that the end of the exercise? Of course not. (You knew it wouldn’t be, didn’t you?). Identifying when a buyout situation might arise is one thing. Having the funds for the payout is quite another. Chris Mercer sagely points outa number of […]

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A faithful reader of my blog is developing his exit plan from his business of 28 years. He asked if he should use a broker to sell his business or negotiate the sale himself. And, is 20% commission of the sales price reasonable? First, I’m usually in favor of using a broker instead of trying […]

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