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Exit Planning Step 2 – Financial Needs

Once the personal, financial and business have been clearly identified, the next step involves determining the business owner’s financial needs upon exit.  In other words, what lump-sum amount is required upon exiting the business (including from the sale of the business) to enable the business owner to achieve the goals defined under Step 1?

 

A certified financial planner (C...

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Exit Planning Step 1 – Defining Goals

An begins with a concise statement of the business owner’s personal, financial and business goals.  These provide the framework against which all exit planning decisions are made.

 

Each business is unique and each business owner will have his/her own personal, financial and business goals.  These unique goals will drive the creation of the exit plan.  There are, however,...

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Exit Planning – The 6 Step Process

According to Gary Ford and Connie Bird, authors of "Life is Sales", three common attributes of successful people are initiative, persistence and assertiveness.  It is these qualities that drive entrepreneurs to build successful organizations and it is these qualities that empower business owners to prepare for a through an exit plan.

 

To develop an effective exit plan the foll...

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Developing an Exit Plan – The Benefits

All privately held business owners will one day exit their business.  The exit will be voluntary (at a time of the business owner’s choosing) or it will be involuntary (due to burnout, illness, disability, marital problems or death).  An is needed to ensure a voluntary exit.  A contingency plan is needed to be prepared for an involuntary exit.  Either way - a plan is needed!

 

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Business Plans Are Not Just For Start-Ups

 

This week I want to discuss something vital to businesses at every stage of their life cycle – Business Plans.

 

Most people recognize the importance of .  However, business plans are equally important for established businesses operating in high growth, mature or declining industries.  Studies show that business plans increase the odds of business growth and raising c...

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April, 2012

Jason Kwiatkowski, CA, CBV, ASA, CEPA completes Level I & II Collaborative Law training to be recognized as a financial professional under the Ontario Collaborative Law Federation (OCLF). Collaborative Law, including Collaborative Divorce, is a way to resolve disputes respectfully -- without going to court -- while working with trained professionals who are committed to:

1. Negotiating a mutually acceptable settlement without having courts decide issues. 2. ...

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BV Benefit #10 – Executor / Trustee Protection

Executors of an estate with business interests should obtain an as support for the values used in the estate administration tax ("EAT") filing, particularly in light of recent changes to EAT legislation and the potential for personal liability facing executors.

 

At the time of probating the will, EAT (previously known as "probate fees") of 0.5% must be paid on the first $50,000 ...

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BV Benefit #9 – Matrimonial Separation

According to Statistics Canada, over 40% of marriages will end in divorce before the 50th year of marriage. [1]   Where there is a family business or where one spouse has an ownership interest in a privately held company, there may be a need for an in a matrimonial separation.

 

The division of property is a major issue in a divorce.  According to the Ontario Ministry of the At...

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BV Benefit #8 – Shareholder Disputes

Business owners typically do not require an every year.  Or do they?

 

In shareholder disputes there is often an immediate need for a business valuation.  However, being proactive and obtaining an annual valuation can help to avoid a potential shareholder dispute.

 

Business ownership...

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BV Benefit #7 – Life Insurance Coverage

Many business owners utilize life insurance as an integral part of their exit and contingency planning.  Without life insurance the overall may be incomplete.

 

Life insurance is often used for income replacement or to alleviate the burden of estate and probate taxes upon death.  However, when business owners use life insurance to fund a buyout or redemption of the shares of a...

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