financial Archives - Your ExitMap

Owner Obstacles to an Exit Plan

John F. Dini — Thu, 06 Oct 2022 14:41:40 +0000

Owner obstacles to the implementation of an exit plan are often unconscious, but they can be dramatic. Their attachment to the business can be difficult to break. An advisor spends a lot of time and energy developing the vision for life after ownership in the hopes that it is far more attractive to them than their current role in the business. Yet no matter how well developed that vision is, or how well defined the action steps are, it isn’t unusual to find owners who behave in a way that ultimately sabotages the plan. Sometimes their actions are even intentional, but more often they aren’t. ... Read more

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Main Street Business: The Importance of a Written Exit Plan

Steven Douglas — Thu, 14 Oct 2021 18:46:06 +0000

When planning for a vacation, do you typically jump in the car and just start driving without first determining where you are going? No, of course not. You plan out where you want to go, when you want to leave, what activities you want to do on the trip, and so forth. You create a plan to make sure that you know where you are going and what you are going to be doing. The same principle applies to business owners when transitioning from their Main Street and Mid-Market businesses. Without an exit plan in place, the odds of reaching your end goal are extremely ... Read more

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Will You Be Ready?

Jan Graybill — Mon, 28 Jun 2021 14:34:45 +0000

Will you be ready when it is time to leave your company? A business owner needs to have a basic business strategy to monitor company financials regularly. Several owners consider this a strategy to prepare for exiting their businesses. However, monitoring company financials is like looking in the rearview mirror. What if you could incorporate a business strategy that looks forward and leads to accelerating profitability and increases business value? In addition, this strategy helps lead to less stress, more free time, and ultimately helps take control of a business exit? The Active Strategy The Business Strategy is called Exit Planning. John H. Brown, author ... Read more

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Avoiding Financial Anxiety

Jan Graybill — Tue, 15 Jun 2021 15:51:50 +0000

Seek help and avoid financial anxiety[/caption] Everyone has financial anxiety to some extent. Whether you have a little money or a lot of money does not make a difference. However, when it comes to asking for help, many people avoid seeking financial advice until necessary. As financial decisions become more complicated, it is far easier to make a mistake. Today more and more people procrastinate on making financial decisions. Procrastination to make financial decisions can ultimately lead to anxiety, delay, or indifference. In this article, I provide three keys to seek out and accept financial advice from a professional advisor. If you recognize ... Read more

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Wealth Management for Business Owners

Pat Ennis — Tue, 01 Dec 2020 20:07:25 +0000

Wealth Management Considerations for Business Owners Small business owners are at times neglected by the wealth management community as the business is commonly (not always) the owner’s largest asset rather than a portfolio of stocks, bonds, and mutual funds. You’d be well-advised as a business owner to engage a Financial Advisor who is proactive and experienced in factoring your future plans for the business, into your overall plan for managing your wealth. Key Elements of Exit Planning Impactful wealth management for you as a business owner would include at least these elements of exit planning: Clarifying what “exit” means to you. For example, do ... Read more

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The Dismal Ds and Exit Planning

John F. Dini — Tue, 10 Nov 2020 19:40:36 +0000

The “Dismal Ds” is an inside joke in exit planning. Every industry and profession has them. In some, it’s “You can have it done well, done fast, or done cheaply. Pick any two.” In planning it’s “Sooner or later, every owner exits his or her business… 100% guaranteed.” Clearly, that refers to the unplanned but inevitable departure from the biggest D – Death. That isn’t the only D, however. There are others, NONE of which lead to a controlled, lucrative, or enjoyable transition. Most start with dis- defined as “dis– 1. a Latin prefix meaning “apart,” “asunder,” “away,” “utterly,” or having a privative, negative, or reversing force.” ... Read more

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Protect Your Business with A Solid Continuity Plan

Steven Zeller — Wed, 13 May 2020 16:59:00 +0000

The Need For A Solid Continuity Plan A great characteristic of successful business owners is that they are optimistic people and will do what it takes to protect their business. They have a can-do attitude, setting their goals high, taking risks, hiring the right people, constantly striving to improve the delivery of their service or product, with a constant drive to build their entity into one of great significance. As a result, building a successful company may give the owner great pride in their achievements and a strong sense of identity. That is normal human behavior. But because of that, the thought of an event ... Read more

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EBITDAC : What is Your Business Worth Now?

John F. Dini — Mon, 20 Apr 2020 17:14:50 +0000

Several friends have sent me a picture of an EBITDAC coffee mug this week. As it states, EBITDAC stands for Earnings Before Interest, Taxes, Depreciation, Amortization and Coronavirus. Will this be the new measure of cash flow for valuing your business? A bleak joke, but one that is on the minds of many business owners, especially Baby Boomers in their late 50s and 60s. Many were postponing their exit planning because business has been so good. As one client told me, “In March we had the best year in the history of my company. It looks like April might be the worst.” Downturns aren’t new, ... Read more

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Baby Boomers’ Influence – Still Strong

John F. Dini — Wed, 08 Jan 2020 14:39:59 +0000

There is ample evidence in the marketplace that Baby Boomers’ influence is still powerful. From walk-in tubs to stand-up bikes, and from pharmaceutical commercials to river cruises, Boomer tastes are catered to in every market. We all know the sterotypes of the “typical” Boomer. Goal oriented, workaholic, spendthrift, and oriented towards accumulating material evidence of their achievements. They identify work and position with their value in society. We have also discussed often in this space the issues of employers who have to replace the corporate knowledge base of retiring Boomers. Clearly, one way to keep the economy moving upwards is to encourage Boomers to work ... Read more

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Family Succession: Exiting a Small Business Part 3

John F. Dini — Mon, 30 Sep 2019 06:47:02 +0000

It’s time to discuss family succession. In Part One of this series we looked at exit strategies that aren’t really available to small businesses, and in Part Two we discussed selling to a third party. Now let’s talk about the issues when transferring to a family member or members. Which Kids? When passing the business to family, often the primary issue is inheritance. Small business owners frequently have 50%, 60% or as much as 80% of their personal net worth in their company. There is a temptation to treat the business like any other personal asset, and divide it among all the children. dinner “After ... Read more

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Exiting a Small Business #2 – Selling to a Third Party

John F. Dini — Sun, 08 Sep 2019 09:14:12 +0000

“In our last episode,” (I’ve always wanted to say that) we discussed the exit paths that are not usually available when exiting a small business. Those are ESOP, Private Equity, and Strategic Acquisition. Now let’s talk about what you can do. The Realities of Selling to a Third Party Multiple surveys over the last decade all show the same result. About 85% of small business (5 to 20 employees) owners say that their exit plan is to sell to a third party. Let’s do the math. There are currently over 3,000,000 small business owners over 55 years old in the USA. We can assume that ... Read more

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Death, Taxes and Exit Planning

John F. Dini — Sun, 14 Jan 2018 12:24:53 +0000

(This post was published in the Sageworks/ProfitCents blog earlier this week) Understanding the Post-Ownership Void As advisors, we understand that our business clients should be preparing for the biggest financial event of their lives – the sale of their business. However, when we ask, “How are you exit planning for your retirement from the business?” we seldom get a straight answer. Instead, we get any number of comments like: “I still enjoy my business, I’m not thinking about it right now.” “I have a good company. I can sell it whenever I choose.” “Everything is available for the right price. I just haven’t heard it ... Read more

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