Request a Strategy Call and we will get in touch with you
Exit Planning Insights
Be Prepared!
August 8, 2014 / in Exit Planning, Sell a Business / by Don Ross
“Be Prepared” is the Boy Scout Motto that has served young individuals and their character development in over two hundred countries since 1907. It can also be an effective mantra for a business owner who will engage in marketing and selling a business. A well prepared business owner plays a vital role on the transaction team and helps ensure maximum value to the shareholders and a smooth transition of ownership. Critical components of “Be Prepared” for …
The ESOP Solution
July 30, 2014 / in Exit Planning, Sell a Business / by Al Statz
We are often asked about Employee Stock Ownership Plans (ESOPs) as an exit strategy. For business owners who are curious about the ESOP exit option, here are links to two recent articles that discuss ESOP basics and some of the pro’s and cons of ESOPs. Both articles are from recent issues of MERGERS & ACQUISITIONS magazine, which is published in partnership with the Association for Corporate Growth, in which I am a member. Recaps Turn to …
Ten Commandments of a Successful Exit
July 17, 2014 / in Exit Planning, Sell a Business / by Al Statz
The average person doesn’t realize that selling a company is often the most gut-wrenching transaction of a business owner’s life. They’ve just spent their life building the business, it’s their largest asset, and they have no training or experience in selling a business. With that as a backdrop, here are ten practical directives that will help you make better exit strategy decisions and achieve a more successful sale. 1. I shall plan ahead Why sell? …
Selling a Business Using a CRT
July 10, 2014 / in Exit Planning, Sell a Business / by Al Statz
When a business owner decides to sell or transfer ownership, the owner often thinks about achieving the following three post-transaction objectives: 1) being financially independent, 2) taking care of family members, and 3) possibly a donation to a favorite charity. All three of these objectives can sometimes be met by setting up a Charitable Remainder Trust (CRT) – the subject of a recent article by my friend and colleague Darrell V. Arne, CPA, ASA, CM&AA covering …
Private Equity Fact and Fiction
May 20, 2014 / in Exit Planning, Sell a Business / by Al Statz
Private equity groups are active acquirers of closely-held lower middle market companies here in California. Private equity consists of individuals, families and institutional investors that make passive minority investments in partnerships that invest in, provide debt financing for, and operate private companies. Republican presidential candidate Mitt Romney’s run for the presidency in 2012 brought sudden attention to the private equity world. Romney, who had been the founder and CEO of private equity firm Bain Capital, didn’t go …
Is it Better to Own or Lease your Business Facility?
May 5, 2014 / in Exit Planning, Sell a Business / by Bob Altieri
For some businesses, specialized building construction is required — hotels, car washes, wineries, some food processing facilities, etc. — making the business and real estate nearly inseparable, and making owning the real estate almost mandatory. However most enterprises need a more generic commercial, industrial or retail property to support business operations, and the decision to own or lease real property is more elective. Companies that lease their facilities avoid the sizable cash investment associated with …
Increase Business Value with Agreements
February 19, 2014 / in Business Valuation, Exit Planning / by Jim Leonhard
I recently completed an exit planning valuation of a business that enjoyed a very favorable discount on purchases of a key component used in the assembly of its products. The discount, negotiated many years ago, was a handshake deal between the founder of the company and his former employer who manufactured the component. This large discount enables the business to be significantly more profitable that it would be otherwise. Any investor or buyer for this business …
Tip for Maximizing Business Value: Diversify Your Customer Base
February 5, 2014 / in Business Valuation, Exit Planning / by Al Statz
Our seller and business valuation clients are usually proud of their company’s long-term relationships with major clients, and with good reason. Having a high percentage of business with a few customers can be a very profitable and personally satisfying way to run a business. It allows management to focus its attention and fine tune company operations to deliver exceptional service in a very cost-efficient manner. Customer acquisition expenses (marketing, sales, estimating, etc.) can be greatly …
Tip for Maximizing Business Value: Build for the Future
December 20, 2013 / in Business Valuation, Exit Planning / by Al Statz
Is your business built for the future? Consumer behaviors, markets, regulations and technology are changing so fast these days that many business owners are having trouble keeping up. And if the business doesn’t have a strong future, it simply won’t trade at a high valuation, or many not have any value at all. Private business owners must constantly monitor changes in their industry and marketplace, and make appropriate investments and take appropriate steps to insure the …
Why Should I Bother Valuing My Business?
December 13, 2013 / in Business Strategy, Business Valuation, Exit Planning / by Al Statz
A new article at Forbes.com addresses a question in the minds of many small business owners, “Why Should I Bother Valuing My Business?” The author explains several of the common reasons small business owners have their businesses appraised by an independent business valuation expert, as they prepare for a sale, buy-out, contingencies, retirement, or passing the business on to children.
Exit Strategies Group, Inc. is a leading provider of business sales and acquisitions, business valuations, and exit planning services for family owned and closely-held companies since 2002.
DRE #01878920
Member of
