Year: 2016

Bicycle riders appreciate the importance of avoiding headwinds on a long ride, especially as they approach the end. A headwind causes a rider to either expend more effort or take more time to arrive at a destination. When a rider is already tired, neither option is appealing. A bike race and owning a business are

When business owners start to think about exiting their companies, the number of possible Exit Paths can seem limitless. In reality, there are only eight: 1. Transfer the company to family member(s).2. Sell the business to one or more key employees.3. Sell to employees using an employee stock ownership plan (ESOP).4. Sell to one or

Few business owners relish spending money on something unnecessary. For most owners, hiring an expert to estimate the value of their companies falls into the unnecessary category. Thus, it is no surprise that owners typically respond to an Exit Planning Advisor’s recommendation to get an estimate of value for the company with some variation of, “Now?

Successful owners are usually optimistic people, somewhat averse to dwelling on the more unpleasant aspects of Business. Contemplating one’s demise certainly qualifies as an unpleasant aspect. Consequently, advisors tend to use a lot of softer phrasings when they talk about business continuity. They ask, “What happens if the owner ‘passes on’ or ‘leaves the scene?”‘

As business owners plan to exit their businesses, they must confront the challenge of incentivizing employees – specifically, management – to stay with the company after they have left. Having a strong established, and committed management team to take the reins once an owner has exited is becoming more of a prerequisite that a luxury