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Exit Planning Articles by John F. Dini, CBEC, CExP, CEPA
John F. Dini, CBEC, CExP, CEPAPresident, MPN Incorporated
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John F. Dini develops transition and succession strategies that allow business owners to exit their companies on their own schedule, with the proceeds they seek and complete control over the process. He takes a coaching approach to client engagements, focusing on helping owners of companies with $1M to $250M in revenue achieve both their desired lifestyles and legacies.
Recent Articles posted by John F. Dini
| Recent Articles posted by John F. Dini |
Family Succession: Exiting a Small Business Part 3 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 Exiting a Small Business #2 - Selling to a Third Party “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 Exiting a Small Business Part 1 Owners who are exiting a small business are often stymied by the range of choices in exit planning. Most literature on the topic discusses seven or eight avenues to exit. A sale to a third party can be to an entrepreneur, private equity (including family offices,) or a strategic acquirer. Internal sales can be to family, or employees via a Leveraged Buy-Out (LBO- often called a Management Buy-Out or MBO.) There is also a sale to an Employee Stock Ownership Plan (ESOP) or the oldest method in the book, closing down the company. While the jargon is appealing to those advisors who want to sound ... Read more Manage Activities; Lead for Results A few weeks ago I posted a comment in the Business Journals Leadership Trust Forum about a life lesson I learned. The difference between effort and outcomes – Manage Activities; Lead for Results. They reached out and asked if I could expand my comments a bit. Those of you who know me won’t find it surprising that it grew into an article. You can find it here. I hope you enjoy it. Remember, lead for results. Invest 15 Minutes and take our FREE Exit Readiness Assessment. We do not request any confidential information. John F. Dini develops transition and succession strategies that allow business ... Read more |