TammieSweet

There are many reasons an owner of a company might consider diversifying ownership. The timing for a change in equity ownership can be driven by a number of factors. Often it’s the natural progression of a majority owner seeking to diversify a portion of his/her net worth. For many business owners, private company equity ownership often represents their single largest asset. Therefore, this diversification can be an important step in [...]

View PDF Version Here Key Takeaways: • A mere 12 percent of former business owners say they were highly satis ed with the results they got when they sold their companies. • Pre-sale planning—corporate preparation and advanced planning—is a key step to take to en- sure an ideal outcome post-sale. Do you think about selling your business someday? If you’re like most entrepreneurs, the answer is a resounding “yes!” But [...]

There are many reasons an owner of a company might consider diversifying ownership. The timing for a change in equity ownership can be driven by a number of factors. Often it’s the natural progression of a majority owner seeking to diversify a portion of his/her net worth. For many business owners, private company equity ownership often represents their single largest asset. Therefore, this diversity cation can be an important step [...]

As a Business Owner, Why is it Important to Understand the Value of Your Company?   There are approximately 6 million companies in the UnitedStates with revenues from $1 million to $150 million. Babyboomers own roughly 50% of these businesses. Typically,the perceived value of the business by the owner represents75% or more of their personal net worth. More often than not, a business owner has a much higherperception of value [...]

A Different Perspective on Growing Business Enterprise Value What should business owners do to grow the value of their business? Most advice favors increasing sales and enhancing profits. Instead, business owners should strive to get the business viewed as a low risk, highly desirable investment opportunity. Every lender, investor or buyer looks at a business differently; however, the one factor that trumps all others is how much perceived risk is [...]

The key to minimizing the lender’s perceived risk in financing the transaction. If you decide the best scenario for you is to transfer ownership of your business to management or family, more often than not you will need some combination of bank financing and seller financing. The buyer’s goals most likely will be to minimize their personal out of pocket equity contribution and to maximize the amount borrowed. This approach [...]