Courtesy of John F. Dini of ExitMap® Depending on who you are talking to, Private Equity is either the Great Satan or the savior of small and mid-market companies in the United States. Like most things, the stories depend a lot on personal experience. Once a vehicle for high-risk investment plays in corporate takeovers, Private… Continue reading Private Equity and Privately Held Businesses
Owner Tax Strategies: A Cash Balance Plan
Like most business owners, you’re likely exploring ways to strategically grow your revenue, increase profits, and minimize taxes. These are common goals. As your cash flows increase, you may find yourself increasingly focused on ways to reduce your growing tax burden. Often, we explore sensible capital expenditures and/or business reinvestments that align with your strategic… Continue reading Owner Tax Strategies: A Cash Balance Plan
Conclusion
Communication: Clear and consistent communication with all stakeholders is vital. Whether it’s sharing Business Continuity Instructions with family members or discussing the terms of a Buy-Sell Agreement with co-owners, transparency helps prevent misunderstandings and builds trust. Ownership transitions are inevitable, but with the right continuity planning, businesses can navigate these changes successfully. By understanding the unique… Continue reading Conclusion
Continuity Planning for Departure of One Owner in a Multi-Owner Business
In businesses with multiple owners, the departure of one owner can create tension and uncertainty, particularly if the remaining owners are unprepared. A well-drafted Buy-Sell Agreement is essential in these situations to govern the transition and ensure fairness to all parties. Here are a few key considerations: Buy-Sell Agreement: This agreement should clearly define the terms… Continue reading Continuity Planning for Departure of One Owner in a Multi-Owner Business
Continuity Planning for Departure of an Owner-Operator
In sole proprietorships, the departure of the owner-operator, whether due to retirement, sale of the business, or other, poses a significant challenge. Unlike multi-owner businesses, there is no one to automatically take over, making advance planning crucial. Here are a few key considerations: Identify a Successor: For sole proprietors, it’s vital to identify and prepare a… Continue reading Continuity Planning for Departure of an Owner-Operator
FPA Owner Transitions 