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Buy-Sell Agreement Categories
February 14, 2015 / in Buy-Sell Agreements / by Jim Leonhard
The three types of Buy-Sell Agreements (BSA) are defined by the relationship between the parties to the agreement, i.e., the individual owners and their business entity. Cross-Purchase Agreements are agreements between and among the owners of a business entity that requires the other owner(s) to purchase the interests of owner who has triggered the BSA. Cross-purchase agreements have common elements, including: Funded by life insurance owned by business owners on the lives of other owners. …
How to Sell Your Business for More Than Fair Market Value
February 11, 2015 / in Exit Planning, Sell a Business / by Louis Cionci
If you are selling your business and you want the highest possible price, here is one way to get a premium over its Fair Market Value. First, consider that the value or price an owner can expect to receive for their business is generally a function of: 1) free cash flow generated, 2) growth expectations, and 3) the risk involved in receiving the cash flows. These factors combine to determine the value for the business entity. Expressed …
The Dismal D’s of Buy-Sell Agreements
January 28, 2015 / in Business Strategy, Buy-Sell Agreements, Exit Planning / by Al Statz
Well-written Buy-Sell Agreements (BSA’s) enable orderly share transfers upon the occurrence of certain events during the life of a business. Buy-Sell Agreements also prevent litigation that can quickly create a lose-lose situation for business owners. This article presents a list of 27 trigger events and common issues to be addressed in Buy-Sell Agreements. And, just for fun, each item on the list begins with “D”. Buy-sell issues are unpleasant to think about; which is why …
Baseball and Business Acqusition Financing: Five Tools Scoring Matrix
January 21, 2015 / in Acquire a Business / by Don Ross
The “Hot Stove League” is an expression that describes the six month hiatus from baseball, beginning the day after the final World Series game and extending through the cold winter months until Spring Training opens in March. There is plenty of time and opportunity for baseball fans to roll up their general manager sleeves and discuss the relative merits of potential roster moves on and off their fantasy teams. And that is where the five …
Exit Planning: A New Year’s Resolution
January 13, 2015 / in Business Strategy, Exit Planning, Sell a Business / by Al Statz
“Expect the best, plan for the worst, and prepare to be surprised.” – Dennis Waitley This is the time of year when many of us decide that we need to change things or accomplish new things, and we set goals at the beginning of the New Year. Quit smoking; lose weight; make more money? How about taking a look at your business this year and begin to prepare it for your exit, which will ultimately …
February Seminars: Maximize the Value of Your Business
January 7, 2015 / in Exit Planning, News, Sell a Business / by Al Statz
Now in its 9th year, Exit Strategies’ Maximizing the Value of Your Business seminar delivers essential and practical information to business owners who would like to sell for top dollar in the next 1-5 years. It is not too early to plan the successful exit you deserve! In this fast-paced workshop, business owners learn … The elements of an effective exit strategy Types of buyers and what they value Business valuation nuts and bolts How …
Your December Checklist for a 2015 Business Sale
December 3, 2014 / in Exit Planning, Sell a Business / by Don Ross
Thinking of selling in 2015? Here are ten actions you can take this month to achieve a higher price in the New Year. Finish 2014 strong. Buyers and their lenders will want to see your last full fiscal year profits on an uptick. Ship and invoice everything you should this month. Resist artificially pushing income into next year to reduce your tax bill. Don’t go nuts prepaying expenses like monthly service contracts, retainers or rent. Review the functional …
Sonoma County Backroad Challenge, May 16, 2015
December 1, 2014 / in News / by Al Statz
The 2015 Sonoma County Backroad Challenge century ride will take place on May 16th in Petaluma, California. Cyclists of all levels enjoy spectacular Sonoma County scenery on one of three fully-supported rides (100 miles, 100 Km and 50 Km) ranging from leisurely to grueling. The acclaimed Backroad Fest takes place after the ride, with local cuisine, cold brews, live music, fun and fellowship until 6 pm. Registration is open: www.backroadchallenge.com The Backroad Challenge is a fundraiser for the Petaluma Sunrise Rotary Foundation. All proceeds …
Your Buy-Sell Agreement – Keep It Current Before It Costs You Money and Grief!
November 26, 2014 / in Buy-Sell Agreements, Exit Planning, Sell a Business / by Exit Strategies
Buy-Sell agreements (BSA’s) are an essential, and often overlooked, element in allowing shareholders to realize the value of their investment in a privately held company. The BSA’s purpose is to a) provide a market for ownership interests, b) establish the price and terms for these interests, c) specify a buy-sell process that is orderly and reasonable, and d) specify financing should a “trigger” event occur. There are several reasons this contract among owners can fail. …
Don’t be a Victim of Seller’s Remorse
November 22, 2014 / in Exit Planning, Sell a Business / by Jim Leonhard
More business owners than you’d think second-guess themselves within a year of selling the business. In my experience as an M&A advisor and business valuation expert, the main reason for the failure of business exits is the seller’s lack of planning on how and when to exit. Too many owners never plan and simply wait until something happens that essentially forces them to sell, such as health issues, marital stresses, poor business conditions, or when “burnout” becomes …
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.
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