Few business owners or CEO’s can find enough time or are experienced in managing all or many of the many diverse aspects of profitably operating and continuing a business;
• Tactical Planning and Control
• Cash Flow Planning
• Implementing or updating Buy-Sell Agreements
• Debt and Equity Financing
• Succession Planning
• Merger and Acquisition Planning
• Exit Planning
• Value Enhancement Strategies
We can help you gain control, evaluate financing alternatives, review buy-sell agreements and their related coverage and help discover market opportunities and answers for a sale, succession or acquisition. Begin to operate strategically with coaching from a business advisor.
Please take a minute to consider the value of your role in the health and wealth of your business over time and call or email me to schedule a time when we can carefully consider your goals with you. This is a no cost opportunity for you to discuss your needs and for us to determine which professional is the best fit for you.
Gary Wheeler, Business Intermediary
Acquisition Experts, LLC
772-214-7765
gary@acquisitionexperts.net
Friday, July 25, 2008
STRATEGIC BUSINESS COACHING – BUSINESS SUCCESSION PLANNING
STRATEGIC BUSINESS COACHING – BUSINESS SUCCESSION PLANNING
Every privately-owned business will transfer to a new owner – someday. Most business transfers will be well-planned and successfully executed, with the current owners prospering. We expect that our pro-active clients will be part of this financially secure group. Other business owners, however, will procrastinate and be surprised by an unexpected near-term business transfer, sometimes voluntary (unsolicited offer) but often involuntary.
Involuntary transfers include death, disability or dissolution (perhaps due to retirement, lack of profitability, divorce or partnership disputes). If you have partners or other shareholders, you need a well-constructed buy-sell agreement. We can provide a review of your plans with recommendations for your unique situation based on our years of experience dealing with these issues.
Business succession planning includes provisions for transferring the business assets to family members, key employees and/or strategic merger candidates as well as complete sale or acquisition. We can assist you with specific planning guidelines in each instance.
We help business owners enhance the value of their business. This planning generally improves productivity, and profitably while increasing your business transfer possibilities. Using an Indication of Business Value Report we will benchmark the current fair market value of your business and quantify the effects of profit improvement and risk reduction for your business. We can develop a Project Plan for your situation and coach you and your staff as well as subsequently hold you accountable for the goals and objectives of the plan.
Please contact us for a no-cost telephone consultation to determine if we can help you, and to determine if we can provide you with a reduced price on an introductory strategic business coaching engagement.
Gary Wheeler, Acquisition Experts, LLC
Business Intermediary
772-214-7765
Every privately-owned business will transfer to a new owner – someday. Most business transfers will be well-planned and successfully executed, with the current owners prospering. We expect that our pro-active clients will be part of this financially secure group. Other business owners, however, will procrastinate and be surprised by an unexpected near-term business transfer, sometimes voluntary (unsolicited offer) but often involuntary.
Involuntary transfers include death, disability or dissolution (perhaps due to retirement, lack of profitability, divorce or partnership disputes). If you have partners or other shareholders, you need a well-constructed buy-sell agreement. We can provide a review of your plans with recommendations for your unique situation based on our years of experience dealing with these issues.
Business succession planning includes provisions for transferring the business assets to family members, key employees and/or strategic merger candidates as well as complete sale or acquisition. We can assist you with specific planning guidelines in each instance.
We help business owners enhance the value of their business. This planning generally improves productivity, and profitably while increasing your business transfer possibilities. Using an Indication of Business Value Report we will benchmark the current fair market value of your business and quantify the effects of profit improvement and risk reduction for your business. We can develop a Project Plan for your situation and coach you and your staff as well as subsequently hold you accountable for the goals and objectives of the plan.
Please contact us for a no-cost telephone consultation to determine if we can help you, and to determine if we can provide you with a reduced price on an introductory strategic business coaching engagement.
Gary Wheeler, Acquisition Experts, LLC
Business Intermediary
772-214-7765
Friday, July 11, 2008
BUY-SELL AGREEMENTS
Carefully crafted buy-sell agreements provide an objective means of transferring business ownership under difficult circumstances, as well as protecting parties should trigger events occur. Common trigger events: a shareholder quits or is fired, retires, becomes disabled or dies. It is essential to view a business continuity (buy-sell) agreement as a live document that is updated on a regular basis. Failure to do so invites conflict.
During my 25+ years providing business advisory, business brokerage and merger & acquisition services I have observed both “best” and “worst” practices in the area of partnership, member and shareholder buy-sell agreements. I have witnessed the dire consequences of poorly drafted agreements and the absence of any written agreement, as well as the problems caused by lack of appropriate funding mechanisms to consummate the resulting transfer of interest.
As business advisors, we encourage regular “audits” of your buy-sell agreements if written, or we provide the leadership to have them initially created if unwritten. This is a very important item for review in the risk management section of your financial plan. Your business is most likely one of your most valuable assets and must be planned, managed and protected like any other investment. The business continuity agreement should undergo a regular review to discuss and understand its business and legal aspects in detail. The resulting valuations and planning recommendations are important to incorporate into the estate planning section of your personal financial plans.
One of the business advisory services which we provide is to review and recommend changes to these agreements.
As a final thought, I would like to share the following advice from one of my long-term mentors, Chris Mercer:
“The purpose of the Buy-Sell Audit is to enable a business owner(s), with the assistance of accountants, attorneys, business consultants, and appraisers, as necessary and appropriate, to express the opinion that his company’s buy-sell agreement(s) fairly reflects the wishes and desires of the owners subject to it, in accordance with good business practices and common sense. All the shareholders and the company itself rely on this “audit” in their personal and corporate planning.
Unlike a traditional audit performed by a CPA which is backward-looking, the Buy-Sell Audit is forward-looking and addresses questions like the following:
· Is there a reasonable probability that the agreement will operate to effectuate a reasonable transaction when trigger events occur?
· Are all shareholders who should be subject to the agreement parties to it?
· Do the shareholders who are parties to the agreement understand how the agreement will operate to determine the prices and terms for future transactions?
· Has the agreement been reviewed by legal counsel to ensure compliance with applicable laws and statutes?
· Are the elements of value clearly specified?
· Will the pricing mechanism provide a reasonable value if and when trigger events occur in the future?
· Is the funding mechanism in place and workable?”
These and many other questions will be answered by the completion of a Buy-Sell Audit. Please contact us for a no-obligation, initial overview of your documents and a description and discussion of the review process.
Contact us for more information, or contact Cliff McDonnell directly at cliff.mcdonnell@att.net
Contributing author,
Cliff McDonnell, MBA, CM&AA
Certified Merger & Acquisition Advisor
BUSINESS ADVISOR
Business Succession Planning
Value Growth Consulting
Exit Planning
During my 25+ years providing business advisory, business brokerage and merger & acquisition services I have observed both “best” and “worst” practices in the area of partnership, member and shareholder buy-sell agreements. I have witnessed the dire consequences of poorly drafted agreements and the absence of any written agreement, as well as the problems caused by lack of appropriate funding mechanisms to consummate the resulting transfer of interest.
As business advisors, we encourage regular “audits” of your buy-sell agreements if written, or we provide the leadership to have them initially created if unwritten. This is a very important item for review in the risk management section of your financial plan. Your business is most likely one of your most valuable assets and must be planned, managed and protected like any other investment. The business continuity agreement should undergo a regular review to discuss and understand its business and legal aspects in detail. The resulting valuations and planning recommendations are important to incorporate into the estate planning section of your personal financial plans.
One of the business advisory services which we provide is to review and recommend changes to these agreements.
As a final thought, I would like to share the following advice from one of my long-term mentors, Chris Mercer:
“The purpose of the Buy-Sell Audit is to enable a business owner(s), with the assistance of accountants, attorneys, business consultants, and appraisers, as necessary and appropriate, to express the opinion that his company’s buy-sell agreement(s) fairly reflects the wishes and desires of the owners subject to it, in accordance with good business practices and common sense. All the shareholders and the company itself rely on this “audit” in their personal and corporate planning.
Unlike a traditional audit performed by a CPA which is backward-looking, the Buy-Sell Audit is forward-looking and addresses questions like the following:
· Is there a reasonable probability that the agreement will operate to effectuate a reasonable transaction when trigger events occur?
· Are all shareholders who should be subject to the agreement parties to it?
· Do the shareholders who are parties to the agreement understand how the agreement will operate to determine the prices and terms for future transactions?
· Has the agreement been reviewed by legal counsel to ensure compliance with applicable laws and statutes?
· Are the elements of value clearly specified?
· Will the pricing mechanism provide a reasonable value if and when trigger events occur in the future?
· Is the funding mechanism in place and workable?”
These and many other questions will be answered by the completion of a Buy-Sell Audit. Please contact us for a no-obligation, initial overview of your documents and a description and discussion of the review process.
Contact us for more information, or contact Cliff McDonnell directly at cliff.mcdonnell@att.net
Contributing author,
Cliff McDonnell, MBA, CM&AA
Certified Merger & Acquisition Advisor
BUSINESS ADVISOR
Business Succession Planning
Value Growth Consulting
Exit Planning
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