Exit Options: Third Party Sales

If you don’t have suitable successors among your family or employees, you may decide to sell your business to a third party. In order to maximize your selling price, you must develop a step-by-step plan that increases the value of your business so that it is as attractive as possible to prospective buyers. If you are selling a Main Street … Read More

Exit Options: Internal Sales and Transfers

Why should you consider selling to employees? Because your company lives on with the culture you created. Because you can choose the value, not negotiate it. Because your employees aren’t comparing your company with other investments. Because you control the timing of your exit. Because it is probably the biggest financial transaction of your life. Many businesses have competent employees … Read More

Exit Options: Family Succession

Family succession is a special subset of exit planning for business because family businesses include layers of additional complexity. The pressure of daily decision-making and implementation in a family business can add tension to every situation and especially to those associated with a transition. There are multiple strategies to consider which include tax ramifications on the business, the sellers, the … Read More

Case Study: Fixing the Drafts in an HVAC/ Plumbing/ Oil Delivery Business

The Situation – Rich New Yorkers Weren’t Paying their Bills The remote, northwest corner of Connecticut is a wonderland for outdoor sports enthusiasts.  And while it is close to New York, it is not so close that it gets a lot of vacation traffic.  That’s why New Yorkers and famous people seeking the outdoors and privacy love to have vacation … Read More

Case Study: Cleaning Up a Steel Mill Line

The steel mill industry had been thwacked by obscenely low prices charged by mini steel mills that were springing up in low wage Asian countries.  Even more irritating to the old-fashioned steel mills – they were producing the low cost steel at a much higher level or quality, faster, and with more on-time deliveries than the antiquated, union-driven steel mills … Read More

Case Study: Designing the Exit for a Construction Company

The Situation The owner of a substantial construction company was at the age where he was deciding when and how to exit his business.  He was torn between leaving the business to his son, and selling the business.  If he were going to leave the business to his son, he wanted to fix it up so it would last his … Read More

Case Study: Calling the Future into a Telecommunications Company

The Situation In 1982, President Ronald Reagan spearheaded the deregulation of the AT&T-monopolized telephone industry.  To give AT&T credit, they delivered the only service in the world that had 99.9% reliability:  Landline-based voice communication that traveled uninterrupted via telephone pools and buried cables between millions of telephones.  Their technology was solid, and for more than 80 years, they made few … Read More

Case Study: Designing the Opportunity in an Embroidery Business

The Situation A husband, tired of being at the beck and call of management while working as a supervisor in a warehouse, and a wife, whose children were now in senior high, decided to start a business and run it from their home.  They chose to start an embroidery business because it is a low-barriers-to-entry business with high margins that … Read More

Case Study: The Case of the Unplugged Plug Business

The Situation A sole proprietor who employed one on-call worker wanted to sell his business to move to Florida with his girlfriend.  The owner had developed an extremely specialized niche market repairing a certain type of critical plugs; in fact, there were only a handful of people in the United States who could provide the service he provided, primarily to … Read More