One of the most important decisions you will make when selling your business is the selection of your business broker or intermediary.
It is essential to select a broker that is experienced, knowledgeable, has integrity, and that you can work with.
Click on the link to see the full article and to get the PDF file of questions you will want to use when selecting a broker.
How To Select a Business Broker or Intermediary
Wednesday, February 23, 2005
Tuesday, February 15, 2005
When to prepare a strategic business succession and exit plan
If you are 50 or older you should prepare a succession and exit plan every year. By making a plan that has a 5 years window you can bring key employees and family members into the conversation. This way you get valuable input. It also will allow you to gauge the interest of these important people in buying your business. Planning for family succession is very different from other exit strategies. Employee buy-outs can generate favorable sales prices.
For certain companies, an ESOP may work. An ESOP is an Employee Stock Ownership Plan. It has very favorable tax treatment for the seller and the new owners but has quite a bit of regulatory red tape. For that reason, you usually need at least 25 employees and a business value of over $2,000,000. Everyone gets a share of the ownership. Again, by starting early you can look into all your options without scaring everyone. After all, it’s at least five years off. Your employees will be pleased that you are thinking about these things.
More info.
If you are 50 or older you should prepare a succession and exit plan every year. By making a plan that has a 5 years window you can bring key employees and family members into the conversation. This way you get valuable input. It also will allow you to gauge the interest of these important people in buying your business. Planning for family succession is very different from other exit strategies. Employee buy-outs can generate favorable sales prices.
For certain companies, an ESOP may work. An ESOP is an Employee Stock Ownership Plan. It has very favorable tax treatment for the seller and the new owners but has quite a bit of regulatory red tape. For that reason, you usually need at least 25 employees and a business value of over $2,000,000. Everyone gets a share of the ownership. Again, by starting early you can look into all your options without scaring everyone. After all, it’s at least five years off. Your employees will be pleased that you are thinking about these things.
More info.
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