Exit Coach Bill Black interviews Top Advisors for Tips, Ideas & Precautions for Business Owners who want to grow and protect their company value and plan for a successful Business Sale or Transfer. Listen daily so you can be well-planned!
Episodes
Tuesday Jun 04, 2024
Tuesday Jun 04, 2024
Michael Shea is the President of AdviCoach, a company focused on helping privately held businesses improve their business performance.
Wednesday May 22, 2024
Wednesday May 22, 2024
I'm a business coach who help CEOs and business owners improve business performance and prepare for an eventual sale of the business or a generational transfer. My philosophy: Run your business like you're going to sell it ... even if you're not.
1) Are there steps an owner can take in the short term to increase the selling price of a business?
Contact Info:
Monday May 20, 2024
Monday May 20, 2024
Brad Leggett is the CEO & Founder of The Leggett Group, Inc. Brad works with CEO's and VP's of sales to set the company's sales strategy and to build, lead and retain "high performance sales teams." Today, he will discuss how to develop your company's high performance sales team.
Friday May 03, 2024
Friday May 03, 2024
Wednesday Apr 10, 2024
Wednesday Apr 10, 2024
Peter Mehit is the COO of Custom Business Planning and Solutions. Today, he will discuss the most important times to have a business plan.
Friday Mar 29, 2024
Friday Mar 29, 2024
Thursday Feb 01, 2024
Thursday Feb 01, 2024
Z. Christopher Mercer, of Mercer Capital, discusses how business valuation can fluctuate from time to time and why you need to stress-test your Buy-Sell regularly. Of particular note is Chris' Blog, and we recommend you check out www.ChrisMercer.net
Thursday Jan 27, 2022
Thursday Jan 27, 2022
John Bly is a Co-Managing Member of LBA Haynes Strand, LLC. Today, he will be discussing the topic of Mergers & Acquisitions.
Website: www.lba-cpa.com Email: johnbly@lbahs.com
Wednesday Jul 21, 2021
Wednesday Jul 21, 2021
Wednesday Jun 09, 2021
Wednesday Jun 09, 2021
Kresimir is a securities and mergers and acquisitions attorney. He helps his clients maximize the value of their business at sale.
Questions Answered:
1. How do you help your clients plan ahead before a sale?
2. When is the right time to begin planning for a sale?
3. What are some of the most common mistakes business owners make in the sales process?
Contact Info:
Website: www.kpehardalaw.com
Email: kresimir@kpehardalaw.com
Sunday May 30, 2021
Sunday May 30, 2021
Z. Christopher Mercer, of Mercer Capital, discusses the importance of having a thorough Buy-Sell Agreement in place to protect what you work so hard to build. Of particular note is Chris' Blog, and we recommend you check out www.ChrisMercer.net
Saturday May 01, 2021
Saturday May 01, 2021
Here's a past highlight from one of our Guests. Find their full interview at www.ExitCoachRadio.com -- just click "Audio Library" in the "LISTEN" section and enter their name to hear all of their past interviews!
David Sherak discusses some of the many provisions of a Buy-Sell agreement to consider, especially the impact on your family and Estate Planning and Banking Relationships.
Wednesday Jan 20, 2021
Wednesday Jan 20, 2021
Hans Sperling, Attorney - Sperling Law Corporation discusses some of the precautions he helps his clients think through when International Buyers approach them for purchase of the business.
Transcript:
Hans: I mean, I think, even in domestic transaction when you kind of see the money from working a long time to find a good buyer, people want to strike while the iron's hot. A lot of what we do is say, let's slow down a little bit and make sure we do this right. But, with international, as your saying, it's that much more risky. Yeah, they could be trying to get your intellectual property, that's very common, we protect you from that. And the other thing is, if you're manufacturing or you have some technology that might be sensitive, I mean it's not necessarily obvious, it's not necessarily a missile, it could be there's magnets, lasers, sensors, all kinds of things you might not think of as being military sensitive. There's a whole other area of the law that covers that, so that could be an issue. There's also something called a foreign corrupt practices act, which, when you're dealing internationally, you have to be very careful, because in some cultures, they might not look like bribes, but gifts and so are common, and you have to be really careful to stay on the right side of the law, especially US law.
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Monday Oct 07, 2019
Monday Oct 07, 2019
Harris is the man that teaches us how to squeeze the most juice out of our orange. We all have this idea that we need to do more business to make more money. What Harris has done though, for himself and others, is teaching how to get the best use out of the business, time and money that we are currently working with, now.
Tuesday Jul 02, 2019
Tuesday Jul 02, 2019
Steve Smith of GrowthSource Coaching discusses tips on getting your business ready for sale.
Sunday Mar 03, 2019
Sunday Mar 03, 2019
Jay Turo is in the business of building business intelligence dashboards and is going to talk about utilizing business intelligence and dashboards to increase sales, profits, and the likelihood of a successful business exit.
Tuesday Jan 15, 2019
Tuesday Jan 15, 2019
PartnerHere.com is "Reinventing the Way Deals Get Done".
Listeners: You asked, so we found FREE solutions for 5 of your top problem areas. Text “TOOLBELT” to 44222 or click here
Sunday Jan 13, 2019
Sunday Jan 13, 2019
Larry is in the business of helping sales people and business owners grow their revenues. He wants to share with you some ideas on "How to Hire and Motivate Sales Superstars."
Friday Mar 23, 2018
Friday Mar 23, 2018
Tom Gibson is the President and CEO of the Gibson Company. The Gibson Company specializes in Commercial Real Estate Brokerage and Consulting. Today, he will discuss how to achieve better transaction outcomes and gain more time to focus on your business.
Questions Asked:
1. What common mistakes do Tenants, Landlords and Sellers make when hiring a broker?
2. If a broker owes a fiduciary duty to the client, shouldn't the broker's interests be aligned with the client's interests?
3. How do you see the commercial real estate brokerage business changing in the future?
Contact Info:
Website: www.gibsoncompany.com
Email: tgibson@gibsoncompany.com
Friday Nov 10, 2017
Friday Nov 10, 2017
T. Phillip Boggess of TPB Financial discusses the necessity of thinking of your future when starting a business.
Here's a past highlight from one of our Guests. Find their full interview at www.ExitCoachRadio.com -- just click "Audio Library" in the "LISTEN" section and enter their name to hear all of their past interviews!
Transcript:
Bill: Where do you start to plan when you have a new business? Here's T. Phillip Boggess.
T: Almost everyone, when they start a business, wants limited liability, so let's make sure that we create the entity that's gonna have limited liability so we aren't opening the door for any litigators to pierce the corporate veil. At the same time that's happening, we have to plan our exit strategy, because trying to plan for that later is too difficult. So we need to create some sort of buy-sell agreement or some other way for these business owners to know, when it comes time that I want to leave or that I have to leave, that here's how it's going to work. It's going to protect everybody, it's going protect people who are staying in the business, because they're going to get to have the business and run the business as they are without necessarily being in business with their former partner's family, and it's going to protect the former partner's family because if something were to happen to him or her, it makes sure they are going to get what they deserve.
Want more control of your business growth? Invest 15 minutes and get a FREE "Value Builder Road Map" at www.BizGrowth123.com
Sunday Jun 25, 2017
Sunday Jun 25, 2017
Jerrold Katz is a Valuation Expert with JP Katz & Associates LLC. But unlike other valuation firms, the number is just the beginning of his work -- the WHY behind the numbers is the real story.
Work ON your business - free assessment at www.BizGrowth123.com
Sunday Jun 04, 2017
Sunday Jun 04, 2017
David Sherak, Partner-Vogt,Resnick & Sherak discusses legal ideas and strategies with a special focus on Buy-Sell agreements and other governing documents and the importance of thinking how your Business, Estate & Financial planning intersect .
Want more control of your business growth? Invest 15 minutes and get a FREE "Value Builder Road Map" at www.BizGrowth123.com
Tuesday Apr 04, 2017
Tuesday Apr 04, 2017
Here's a past highlight from one of our Guests. Find their full interview at www.ExitCoachRadio.com -- just click "Audio Library" in the "LISTEN" section and enter their name to hear all of their past interviews!
David Sherak, Partner-Vogt,Resnick & Sherak discusses several important planning agenda items as you start to think about your overall Succession plans.
Transcript:
David: One of the important things is: make sure your ownership structure of your business is taken care of. If you do have a trust, make sure that the share certificate for a corporation, or the operating agreement, identifies the trustee of that trust as the owner of that property. Also, make sure that the instrument doesn’t have any special individual that’s appointed to deal with, perhaps a dispute resolution process, that might be in conflict with the terms of trust’s successor trustee or executor under those instruments. Make sure that your advisors are well aware of this planning, including your financial advisors, like the example with the collateral commitments of the bank: the bank didn’t know that this individual was also naming them as a trustee of his various trusts, and ultimately that bank also held the loans, so it didn’t fit within their administration parameters to basically service their own debt, and resign the loans and deal with that collateral commitment. So making sure that all of your advisors are aware of these instruments is important.
Listeners: You asked, so we found FREE solutions for 5 of your top problem areas. Text “TOOLBELT” to 44222 or click here
Thursday Mar 30, 2017
Thursday Mar 30, 2017
Host: Bill Black.
Listeners: You asked, so we found FREE solutions for 5 of your top problem areas. Text “TOOLBELT” to 44222 or click here
Wednesday Mar 08, 2017
Wednesday Mar 08, 2017
Richard provides financial planning advice, particularly to Baby Boomers considering a transition out of the business world.
Listeners: You asked, so we found FREE solutions for 5 of your top problem areas. Text “TOOLBELT” to 44222 or click here
Tuesday Oct 18, 2016
Tuesday Oct 18, 2016
Guest: Lawrence L. Bell, JD,LTM,CLU,ChFC,CFP®,AEP
Larry Bell creates unique solutions for difficult financial issues. In this interview, he explains the unique problems that multi-professional firms wrestle with to help the Partners prepare for retirement on a tax-advantaged basis. Contact Larry at larrybell@theuniquesolution.com
Visit ExitCoachRadio.com for Audio, Videos, Books and Interactive Tools to Grow Your Business Value, Protect Your Family and Prepare for your Future Transition.
New! Get our iPhone app at the App Store - search for Exit Coach Radio. Grow your business value by up to 71% - take a free assessment at www.BizGrowth123.com
Tuesday Sep 06, 2016
Tuesday Sep 06, 2016
Michael Schwerdtfeger is a managing director at Chapman Associates. He provides sell-side mergers and acquisitions advisement to entrepreneurs and business owners exclusively. As a former attorney for Fortune500 companies, Michael is able to use his 20+ years of experience in handling complex business transactions to help guide his middle-market clients to the best outcomes.
Questions Answered:
1) Many of your clients go through the M&A process only one time. What steps do you take to educate them about the process before diving in?
2) How do you set reasonable expectations for your clients?
3) Do clients ever get 'cold feet' during the sale process?
Contact Info:
Website: www.mbsmergers.com
Email: michael@chapman-usa.com
Bonus Material:
Michael Schwerdtfeger’s eBook “The Inner Workings of a Deal: Tips for a Successful Transaction” is now available for download on his website.
Visit ExitCoachRadio.com for Audio, Videos, Books and Interactive Tools to Grow Your Business Value, Protect Your Family and Prepare for your Future Transition.
New! Get our iPhone app at the App Store - search for Exit Coach Radio. Grow your business value by up to 71% - take a free assessment at www.BizGrowth123.com
Saturday Sep 03, 2016
Saturday Sep 03, 2016
Kevin Ramsier is in the business of middle market mergers and acquisitions and is going to talk about how a management team adds to business sale value.
Visit ExitCoachRadio.com for Audio, Videos, Books and Interactive Tools to Grow Your Business Value, Protect Your Family and Prepare for your Future Transition.
New! Get our iPhone app at the App Store - search for Exit Coach Radio. Grow your business value by up to 71% - take a free assessment at www.BizGrowth123.com
Friday Aug 05, 2016
Friday Aug 05, 2016
Duncan Rolph is the Managing Director of Miracle Mile Advisors. Miracle Mile Advisors is an independent, SEC Registered Investment Advisory firm. They specialize in providing sophisticated financial plans using portfolios with low cost index funds and ETFs. As one of the fastest growing firms in the country, Miracle Mile's partners have an average of over 15 years of proven experience working with high net worth families. Duncan will be discussing the topic of how business owners can replace the cash flow from a profitable business after selling the business.
Visit ExitCoachRadio.com for Audio, Videos, Books and Interactive Tools to Grow Your Business Value, Protect Your Family and Prepare for your Future Transition.
New! Get our iPhone app at the App Store - search for Exit Coach Radio. Grow your business value by up to 71% - take a free assessment at www.BizGrowth123.com
Friday Apr 17, 2015
Friday Apr 17, 2015
Host: Bill Black. Kris De La Pena discusses retirement, purchasing power, and the importance of hedging your portfolio with the rising cost of living. Audio library: www.ExitCoachRadio.com. New content daily - check back often!
Monday Nov 17, 2014
Wednesday Oct 15, 2014
Wednesday Oct 15, 2014
Host: Bill Black. Audio library: www.ExitCoachRadio.com.
Sunday Oct 05, 2014
Sunday Oct 05, 2014
Host: Bill Black. Michael Genevay discusses benchmarking, energy efficiency, and energy compliance for both current business owners and those looking to make an exit. Audio library: www.ExitCoachRadio.com. New content daily - check back often!
Sunday Sep 07, 2014
Sunday Sep 07, 2014
Steve Beatty interviews Jay Young who shares tips, ideas and precautions in the area of risk and risk management. We upload new content daily so check back often!
Saturday Aug 30, 2014
Saturday Aug 30, 2014
Bill Black interviews Heath Frantzen who shares tips, ideas and precautions in the areas of selling your business, and transitioning from seller to buyer. We upload new content daily so check back often!
Saturday Aug 23, 2014
Saturday Aug 23, 2014
Steve Beatty interviews Bob Anderson who shares tips and ideas for founders and their specific needs during liquidity. We upload new content daily so check back often!
Thursday Mar 27, 2014
Thursday Mar 27, 2014
Bill Black takes the mic for the 100th Episode of The Exit Coach Radio Show to describe common knowledge from our first 100 Advisor interviews.
We add new content daily! Listen on iTunes: iTunes.ExitcoachRadio.com . See the Index for more on this Topic or by this Guest .
Host: Bill Black, The Exit Coach Radio Show - the Information Station for age 50+ business owners.
Click for FREE E-book "100 Words from 20 Advisors"
How Ready Is Your Business for Transfer or Sale?
Click for FREE Assessment Report
"Come Listen for a Minute"!
Thursday Mar 06, 2014
Thursday Mar 06, 2014
In a previous article, we looked at what happens to a company when one owner becomes disabled. In our example, the company had a buy-sell agreement that covered the death of an owner, but failed to adequately address the cash flow implications of a lifetime event (divorce, disability, bankruptcy or retirement of a shareholder).
Few owners (or their advisors) give much thought or analysis to the
likelihood of a lifetime transfer. Instead they focus all of their attention on
dealing with the least likely event—an owner’s death. Yet, in our experience,
lifetime transfers occur much more frequently, and when they do can cause huge
problems.
Thursday Feb 20, 2014
Thursday Feb 20, 2014
When co-owners are united in striving toward common business goals such as growing revenue, building business value and increasing cash flow, the business dynamics can be wonderfully positive and strong. These owners move together to reach common goals. Contrast that bright picture with what can happen when, suddenly perhaps, the goals of the owners diverge.
Most closely held business owners are full-time employees (and more) in their businesses. What happens when one of the owners wants or needs to leave the company?
Possible reasons for leaving are many, ranging from boredom to more dramatic and unexpected events such as the sudden disability of an owner. Let’s use owner disability to illustrate some of the significant issues raised when ownership goals are no longer aligned.
When disability strikes an owner, the company will endure substantial hardships, both economic and operational. More importantly, in the absence of a buy-sell agreement, the disabled owner’s income stream from the company also may evaporate. This problem confronted Steve Hughes, one of three equal shareholders in a growing advertising agency.
At age 38, Steve suddenly had a stroke. As with many stroke victims, his recovery was incomplete. Physically, he was the picture of health (his golf game even improved!); but he totally lost his ability to speak and read. Doctors told Steve he would never be able to return to work.
Steve’s firm had a buy-sell agreement, but it covered only a buyout at death and an option for the company to buy Steve’s stock if he were to try to sell it to a third party. Trying to find and sell closely held stock to a third party is a difficult proposition anytime; Steve’s disability made it impossible. Even if his fellow shareholders had wanted to continue his salary, they did not have the resources to do so indefinitely.
As a result, the company and Steve were left in a classic dilemma—the company, or rather the remaining shareholders, wanted to purchase Steve’s stock so that its future appreciation in value, due now to their efforts alone, would be fully available to them. Conversely, as Steve’s family soon realized, the owners of closely held stock rarely receive current benefits in the form of dividends. The profits of a closely held corporation are either accumulated by the company or distributed to the active shareholders in the form of salaries, bonuses and other perks.
In short, Steve’s family would not get what it needed most—cash—to replace the salary Steve was no longer earning. Steve’s partners faced the prospect that their efforts to increase the value of the business would reward Steve as much as themselves.
This dilemma could be solved only by a buyout of Steve’s stock. His family then could receive a fair value for his business interest when they otherwise would receive nothing (until the company was eventually sold or liquidated). Meanwhile, ownership would be left with those responsible for the company’s success.
The Hughes buyout faced several problems arising from the now-divergent goals of the owners. Prior to Steve’s unexpected disability event, joint contributions of time, effort and capital created unanimity among owners. Now, one owner needs cash, while the company and the other owners want to retain earnings for growth.
Further, the remaining owners want to pay as little as possible over as long a time period as possible because they (or the company):
- Will pay for acquiring that value with after-tax dollars; and
- Want to preserve, not spend, capital on a non-productive asset such as stock of the company.
Before Steve’s stroke there was mutual agreement and understanding among the owners. After his disability, there are radically different owner wants and needs. The result: Owner discord and impaired business performance.
Typically, we must address four major issues that arise in situations like this:
- Agreement on the business value.
- Funding for the buyout.
- Agreement on the payment terms of the buyout.
- Payment to the departing owner with the least income tax consequences.
A buy-sell agreement drafted before such transfer events occur and when mutual ownership objectives unite all owners can anticipate and manage each of these issues.
If you would like to discuss in more detail ways to prevent problems in a transfer of ownership, please contact me.