The fourth element of a successful Exit Plan is to know what your company is worth. To accomplish this, you should retain (if you haven’t already) a valuation specialist to give you and your advisors a good idea of what your company is worth. As you know, any Exit Planning Process should be owner-based. Its foundation is your goals—one of which is how much money you want when you leave your company. The other part is k...
One of your greatest allies in avoiding expensive litigation affairs can be a business valuation! Recently more and more businesses across Toronto are using business valuation to their benefit. It’s not unlikely that during legal disputes, whether it be from matrimonial or a partner or shareholder, the business’s value is an area of contention. Chartered Business Valuators, or CBVs, may be summoned by the court to pr...
The Advisor Team: Your Expert Bench Each exit advisor, through his or her professional expertise, keeps the flame alive by making recommendations that give the owner the best chance to exit on his or her terms. However, it’s important to note that owners and their Exit Planners don’t...
Owners can sell their business to a third party, transfer to an insider (key employees), or transfer to a child. Let’s focus on a transfer to an insider. The to an insider can be difficult and risky, but it can be done.
In this blog post, we unveil an example of a business owner who is attempting to put their business on the market while assuming the value of their business. Luckily, this business owner has a trusted advisor to help clear up any confusion and suggest the necessary steps to take before contemplating a sale. Thomas Ryder, an experienced Exit Planner, was a bit taken aback when his client, Brian Alpert, announced, “ I’ve decided to sell my business.” Typically, Ryder’s cl...
The number of possible successor owners is rather limited. Business owners must choose among (and usually have in mind a specific successor):
In our last post, we uncovered how minimizing one’s risk profile is a great start to enhancing business value. The second piece to the valuation puzzle is responsible use of a company’s available cash flow. Improve Available Cash Flow While minimizing risk is critical to enhancing the , one must also keep a pulse on how a business is utilizing its liquid capital on a day-to-day basis. Obviously, improved revenue or reduced expenses will also increase value, but in most...
There are countless considerations when transferring the ownership of a business. Before any real plans to sell a business can commence, a business owner first must compare the value of their business today with the amount that they want or need their business to be worth when they sell it, because there’s often a gap between those two numbers. One of the quickest ways to close that gap is by enhancing the value of their business. In order to increase the value,...
Successful small and mid-sized businesses usually share a few common elements. First, they’re headed by owners who shoulder most of the important burdens. Second, they must . Third, when owners realize that they must change their already-successful businesses to make them even better, they either or rush to action. Lets look at owners like ...