<img height="1" width="1" style="display:none" src="https://www.facebook.com/tr?id=275610486160139&amp;ev=PageView&amp;noscript=1">
South Burlington, VT

Value Creation Blog

6 Reasons Business Owners Don’t Do ESOP’s

Continue Reading

Topics: ESOP, business exit planning, succession planning

Business Exit Planning Is About Flexibility

Exit PlanningPutting together an exit plan is about having plans that are flexible and fit your needs.  In fact, most of the time we believe that business exit planning and scenario plans go hand in hand.

Continue Reading

Topics: enterprise value, business exit planning, value, succession planning, scenario planning

Business Exit Planning And Key Performance Indicators

business exit planningBusiness exit planning is often around transferring ownership of a business.  In my experience the owner is often not interested in transferring their business or not able to transfer it for financial reasons.  If they’re not interested in transferring their business they often are interested in changing their relationship to the business.

Changing the owner’s relationship to the business usually means working less hours and being less involved in the day-to-day operations.  If we do our jobs properly, a well run private business can stay private for a very long time.  When this happens, the need for extreme financial planning is reduced and the owner’s safety for retirement income increases.

Continue Reading

Topics: business exit planning, for advisors, Valuation, Key Performance Indicators (KPI), succession planning

An Easy Way To Make Sure Collaboration Happens

Continue Reading

Topics: business relationship management, enterprise value, business exit planning, collaboration, strategic planning, succession planning

Using An 831 (b) Captive As Part Of Your Business Exit Strategy

831 (b) captive insuranceToday’s environment is not a good one for selling your business.  In many instances it’s better to sell your business to key employees and management than to a third party.

The goal when selling to your managers is to reduce the total tax cost of the transaction.  We know that when we do a stock sale, the maximum amount of total taxes are paid.  This is because the buyer uses after tax dollars to pay for stock.

Continue Reading

Topics: financial independence planning, business exit planning, 831(b) captive insurance company, succession planning

5 Things To Think About With An ESOP - Exit Planning

ESOPI was reading an article in the New York Times last week about how a company used an ESOP to help the founder exit from their business.  As I was reading the article I thought there were some things that might be useful to review if you’re thinking about an ESOP, (and every business owner I’ve talked to has thought about one).

For those who don’t know, an ESOP stands for Employee Stock Ownership Plan.  An ESOP is a qualified retirement plan and as such has tons of regulations that are governed both by the IRS and the Department of Labor.  I’m not going into the technicalities of an ESOP, just some of the things you would want to think about if you’re contemplating doing one.

Continue Reading

Topics: ESOP, exit planning, business exit planning, succession planning

Should I Give My People Stock In My Company? - Exit Planning

Giving stock in your company?One of the questions I’m asked on a regular basis is whether our Clients should give stock to their key people.  Many private business owners believe that if they give their managers stock, those key managers will take a more active “ownership” interest in the company.

For the most part I’ve found that this belief is false.  Managers who are given stock don’t often take an ownership interest.  In my experience whether a manager owns stock or not has little to do with how they act towards the company.

Continue Reading

Topics: business exit planning, deferred compensation, succession planning

3 problems that entitlement can cause

EntitlementI was thinking about the topic of entitlement the other day as it relates to the family business.  Having the opportunity to join the family business is an opportunity that few children seem to take advantage of.  Often children see their parents work very hard for a long period of time to get the business established.  As a result they either don’t want to work as hard as their parents or often feel entitled to the goodies the business provides, but not have to work hard to deserve those goodies.

Parents often feel guilty for the amount of time they’ve spent building the business. To make themselves feel better parents will sometimes not put requirements for their children around material objects.  If this is done to an extreme basis this can lead to a feeling of entitlement by the children.  This entitlement can become a problem if the children join the family business.

Continue Reading

Topics: wealth management, enterprise value, business exit planning, family business transition, succession planning

4 ways to prevent shirtsleeves to shirtsleeves in family business

shirtsleeves to shirtsleevesMany of us have heard the saying shirtsleeves to shirtsleeves in three generations. This is where the first generation builds wealth, the second generation expands the wealth and the third generation spends the wealth and has to start over again.
Continue Reading

Topics: mission vision values and goals, business relationship management, business exit planning, family business transition, Mission statement, succession planning

How do you become operationally irrelevant?

Operationally Irrelevant
One of my favorite blogs is John Warrillow’s called built to sell.  I always find his questions and ideas interesting.

In his most recent entry he is asking the question about whether having a number two is a good thing or should you build a strong senior management team.  My answer is you should do both.

Continue Reading

Topics: operationally irrelevant, enterprise value, business exit planning, passive ownership, succession planning

Subscribe to Our Blog

Subscribe to Our Blog

Most Recent