Category: Exit Planning

"This Nation was born when a band of men, the Founding Fathers, a group so unique we've never seen their like since, rose to such selfless heights. Lawyers, tradesmen, merchants, farmers – fifty-six men achieved security and standing in life but valued freedom more. They pledged their lives, their fortunes, and their sacred honor. Sixteen… Continue reading The excerpt below comes directly from Ronald Reagan’s Commencement Address at the University of Notre Dame back on May 17, 1981.

Joe’s “business” expenses are not only common, but he doesn’t take all that much in comparison to some other owners. Many advisors can tell stories of company-paid second homes, family trips and other expenses far less business-related than Joe’s. Under what we laid out here, we can add about $58,000 a year in post-tax spending… Continue reading “Sellers Discretionary Expenses”

If it is so simple, why do so few business owners do it? Instead, they value their businesses by hearsay, miss their lifestyle needs by a substantial margin, and think “I’ll be fine.” In fact, fewer than one in five owners has even documented a plan for their transition. Let’s look at an example of… Continue reading Testing the Value Gap

The Value Gap is the difference between what a business owner would realize if he or she sold their company today, and what they need to embark on a financially secure “next act” after business ownership. Both amounts can be determined with some accuracy by professionals. A qualified business appraiser can analyze a company, its… Continue reading Addressing the Value Gap – Living Expenses

An owner-centric business can make it more difficult to sell and can even reduce its value. If a potential external or internal buyer can’t fill your shoes, then they must either hire talent to replace your lost skillset, or keep you on for an extended period of time to help with the transition.  Adding headcount… Continue reading Too much dependence = less value