Handled well, the ESOP functions as a means of financing the ownership transition of a closely-held business in a tax-favored manner. But it’s not right for everyone.
Learn how EBITDA, or earnings before interest, taxes, depreciation and amortization, facilitates financial comparison among companies in the same sector.
Are you planning to sell your business or otherwise transition its leadership? Here’s how to plan and stage your company for transitioning at maximum value.
Employees Have Retirements Staked on Company Success An employee stock ownership plan, commonly referred to as an ESOP, offers a range of benefits for sponsor companies, in addition to its owners and employees. As a qualified employee benefit plan, an ESOP is designed to provide retirement benefits to employees, and is similar to that of […]
Inaction Dissatisfaction is Preferable to Buyer’s Remorse At a client’s recent board meeting we were evaluating making a bid on a rival business worth $100 million. Our management had spent years positioning itself for the opportunity to obtain this business, and now that acquisition was finally upon us. Even though it was an extremely large […]
Business valuation is both a science and an art You need both your right and left brains when you set about valuing businesses, which is an endeavor that is mostly science, with a fair bit of art added in. To begin, one must understand the three principal methods of business valuation. Next, one must understand […]
Buyers’ End Game Affects Suitability As an owner considers a sale of a business, it is critical to identify the goals of the transaction, and match those objectives with the most suitable prospective buyer. There are many different kinds of buyers that might be well suited to acquire the business. Buyers are often grouped into […]
Advisory Board Roles and Responsibilities for Any Stage of Business The boards of directors of for-profit and non-profit organizations have the same fiduciary responsibilities: duty of care, duty of loyalty and duty of good faith. While similar to fiduciary boards, advisory boards are not the same. The purpose and function of a board of advisors […]
Making Improvements that Will Benefit the Seller and the Buyer As you start thinking about selling your business you should also think about how you might make some improvements to the business to maximize business value to a buyer. Identify the company’s shortfalls and consider fixing them. Look at your business through a prospective buyer’s […]
Many Moving Parts Drive a Sale As you consider selling your company, there are many different topics that, as an owner, you may need to assess. In evaluating whether to sell, an owner’s time and energy can become focused internally, as he or she questions such as whether the appropriate management team exists, whether the […]