Business owners find it very difficult to part from the companies they built. When discussing alternatives to exit their business, they often ask which is better: selling their business stake entirely or continuing to work with the company and benefit from its further growth. They may not know that they need not choose between selling …
Private Equity Recapitalization: What is it and how does it work? Read More »
Company owners who have no intention to transition their companies to new management any time soon often ask why they need a business valuation. Business valuation provides the baseline value of a company, the starting point from which you, as a business owner, may build a company with transferable value. Transferable value is what your …
What Exactly Does a Business Valuation Imply About My Company? Read More »
Every business owner needs specialized, strategic planning to prepare for the eventual transfer of their biggest asset—their business. Without proper knowledge of the exit planning process, organizational structure, and business goals, exit planning is a mammoth, complicated task destined to yield a disappointing outcome. Certified exit planning consultants bring much-needed expertise and objectivity by providing …
Key person risk is the most challenging and complex risk to mitigate. There are standard methods to manage and reduce business operational, credit, market, and legal risk. Key person risk also has the potential to sink a business. Standard business management practice entails managing risk, but key person dependency is often the company’s most overlooked …
Successful businesses create value for their owners, customers, suppliers, and employees. A company that does not create value ceases to exist. The value keeps a business running. The value creation journey begins with the commencement of your business. However, you can reap even greater benefits if you work intentionally to create value. What Is Value …
When it comes to enhancing business value, maximum effort minimizes risk. As a business owner, you may think that risk mitigation is critical. While it is essential, it’s not your only tactic. De-risking your business will pay enormous rewards, but it’s not enough to meet your future business goals or desired exit. What Is De-Risking? …
Your professional life brings you into contact with people from different walks of life as clients, colleagues, bosses, or customers. A few of them will also become friends, allies, and mentors. Professional relationships are the foundation of new opportunities in the business world, especially when you start your own business or rise through the ranks. …
For several reasons, most business owners get a business valuation at some point during the company’s life cycle: exit strategy planning, estate planning, litigation, funding, strategic planning, succession, establishing partner ownership in the event of exit or death of a partner, taxation, divorce proceedings, M&A deal, etc. Whatever the reason, getting a professional business valuation …
When business owners decide to exit their business, they rarely realize that this once-in-a-lifetime transaction is their most critical financial decision. Any buyer interested in acquiring the business will have top-shelf advisors handling accounting, legal, tax, and transaction details. Owners intend to exit from using a certified exit planning advisor (CEPA) to level the playing …
Business owners have several exit options. They may choose to pass their businesses to children or successors, sell to a third party that an M&A team has identified for them, pass the company to employees or the management team, or close the business by liquidating all its assets. Whatever your choice of exit option, your …
