1. Owner Objectives
- When do you want to leave the business?
- How much cash do you need?
- To whom do you want to transfer the business?
- Key Employee’s?
- Outside Party?
- Leave a legacy?
- Never “retire?”
- Philanthropic works?
2. Business and Personal Financial Resources
- Provides a baseline value.
- Measures business and personal resources.
- Allows you to monitor progress toward stated objectives.
3. Maximizing and Protecting Business Value
- Grow business value.
- Reduce income taxes upon sale of business.
- Protect assets from business and personal creditors.
- Motivate & keep Key Employees & Management focused.
- Create ability to sell the business.
4. Ownership Transfers to Third Parties
- Cash at closing.
- Eliminate financial risk.
- No family succession issues.
- Speed of exit.
- 20% of all businesses for sale –
- but only one of four sells to a Third Party.
- Sales under $10 million – one out of three sells.
- Sales over $10 million – 50 / 50 chance.
5. Ownership Transfers to Insiders
- Achieves Exit Objectives of:
- Transferring ownership to a family member.
- Selling to Key Employee or Key Employee Group (KEG).
- Transitioning ownership to a Partner(s).
- Motivates and retains key employees.
- Reduces tax burden.
- Reduces risk and increases amount of money received.
6. Business Continuity
- Objectives still achieved if you don’t survive.
- Retain ownership and control even if co-owner departs.
- Can force non-contributing owners to leave.
- Ensures survival of the business for the benefit of others.
- Results in family receiving value of your interest.
7. Personal Wealth and Estate Planning
- Preserve wealth, minimize taxes using both lifetime and death planning tools.
- Integrates lifetime exit objectives with estate plan.
- Estate planning becomes part of business planning.