Newsletters

Title	Preview
Business Continuity Lifetime Exits - Part 1	In the last three issues of this newsletter, we talked about the issues that would confront your company if you were to die. We discussed the impact that the loss of your financial resources, and the loss of your talent, would have on your company. We talked about how business continuity planning could address each one of those losses.
Business Continuity Lifetime Exits - Part 3	In the prior issue of this newsletter, we looked at the continuity issues arise when an owner makes a voluntary or involuntary lifetime exit from a company. At the end of that article, we posed the question:
Business Continuity Lifetime Exits - Part 3	In the prior issue of this newsletter, we looked at the continuity issues arise when an owner makes a voluntary or involuntary lifetime exit from a company. At the end of that article, we posed the question: What happens when two, or more, non-controlling (usually equal) owners become locked in a bitter dispute but neither is able to fire or get rid of the other? How can a buy/sell agreement be designed to resolve this unfortunate but, all too common, situation?
Why Should You Exit Plan When You Have No Plans To Exit	We’ve all pitied the well-past-his-prime athlete who refuses to retire. Does the aging business owner who stays in his business deserve our pity as well? Is there something wrong with an owner who refuses to retire — not because he needs the money or the status, but--because he finds little meaning and significance in a life without his profession?
Seven Reasons Owners Want to Sell Their Companies to Key Employees (Part 1 of 3)	As a business owner familiar with Exit Planning, you know that you can leave your business in one of eight ways: 1. Transfer your company to a family member; 2. Sell the business to one or more key employees; 3. Sell to key employees using an ESOP; 4. Sell the business to one or more co-owners; 5. Sell to an outside third party; 6. Engage in an initial public offering; 7. Retain ownership and become a passive owner; or 8. Liquidate.
Five Reasons Owners Actually Do Sell Their Companies to Their Key Employees Part 2 of 3	In the previous issue of The Exit Planning Review™, we surveyed the seven reasons business owners want to sell their companies to their key employees. As you know, motives are very different from outcomes. In this second part of the series, we discuss the five reasons that owners actually do sell their companies to their key employees.
Seven Reasons Owners Don't Sell To Key Employees (Part 3 of 3)	In this final part of our three-part series on why owners sell to key employees, we look at why owners choose not to sell to this type of buyer. If you are considering or in the process of transferring to key employees, we suggest that you pay particular attention to these seven obstacles that can derail this process.
Using A Valuation Specialist In The Sale Or Transfer Of Your Business	In order to leave your business successfully, you must not only know what you want (when you want to leave, how much money you will need and who you want to sell to) you must know how much your business is worth. For example, if you told your advisors all about your objectives but you couldn’t tell them with any certainty what your company was worth, how could they help you reach your destination? It would be similar requesting a map but not knowing if you planned to take a plane, a boat, a car or walk to the destination.
Your Target Departure Date The First of Five Elements In Every Successful Exit Plan	In past issues of The Exit Planning Review™, we have discussed the stepby- step process that business owners use to plan successful exits from their companies. We’ve talked about why you need to go through this Exit Planning Process (even if you never plan to exit) and how to find advisors who can help you through the Process.
A Preliminary Financial Needs Analysis The Second of Five Elements In Every Successful Exit Plan	In the previous issue of The Exit Planning Review™, we learned that there are five elements that must be determined before any owner (or professional advisor) can begin to create a successful Exit Plan. These elements are: The owner’s Target Departure Date A preliminary financial needs analysis The owner’s desired successor A preliminary valuation of the company An estimate of future company cash flow
Choice of Successor The Third of Five Elements In Every Successful Exit Plan	In the two previous issues of The Exit Planning Review™, we discussed the first two elements that must be in place before you (or your advisors) can create an Exit Plan. The first is a Target Departure Date. An Exit Plan has no relevance unless it is situated within a specific timeframe. The second element is a preliminary financial needs analysis. As owners, a sizeable portion of our wealth is tied up in our companies.
A Preliminary Valuation of The Company The Fourth of Five Elements In Every Successful Exit Plan	This issue is the fourth in our series about the five elements of every successful Exit Plan. (For copies of the first three issues, contact Hank Weatherby.) As you may recall, the first element is the Target Departure Date. Owners must pick (at least) a tentative Departure Date so that Advisors can put all planning efforts in context.
An Estimate of Future Company Cash Flow The Fifth of Five Elements In Every Successful Exit Plan	This issue is the last in our series about the five elements of every successful Exit Plan. As a quick review, the first four elements are: Target Departure Date. Owners must pick (at least) a tentative Departure Date so that Advisors can put all planning efforts in context. Preliminary financial needs analysis. You must assess your postretirement financial needs because meeting them is a key measure of your Exit Plan’s success. Choice of Successor. Like a Target Departure Date, it is changeable
Family Business Transfers Part One: Can Family Business Transfers Succeed?	What could be easier than transferring your family business to its natural successor, your heirs apparent, your offspring? If some of your first guesses were peace in the Middle East, bi-partisanship in Congress, or the Chicago Cubs winning the next World Series, like me, you have probably witnessed your share of family business transfer disasters.
Family Business Transfers Part Two: The Recipe for Success Ingredient 1: Owners Must Undertake The Seven Step Exit Planning Process	In the previous issue of this newsletter, we identified many of the obstacles to a successful transfer of a family business. Despite those obstacles, some transfers do succeed. The question raised was, "how?" There is a "recipe" for creating a successful intergenerational transfer. It isn’t the only recipe that works, but because it depends on six carefully chosen ingredients, its chances for successful completion are greater than others. If any of the following six ingredients is compromised, or worse still, missing, the result will change.
Family Business Transfers Part Three: The Recipe for Success Ingredient 2: One Child Shall Succeed In Business Ownership	In the last two issues of this newsletter, we looked at the obstacles unique to a family business transfer as well as the first ingredient in a six-ingredient recipe for successful family transfers. In this issue, we take a look at the second ingredient: limiting ownership to one child. Second Ingredient: One child shall succeed in business ownership It is easy to recognize those business owners who have dedicated their lives to ensuring a successful transfer of a family-run business — they have but one child.
Family Business Transfers Part Four: The Recipe for Success Ingredient 3 Being Fair to All Children	In the prior issues of this newsletter, we described a specific recipe for creating a successful intergenerational transfer. The first ingredient in that recipe is to undertake the Seven Step Exit Planning Process (modified for family business owners) and the second is to allow only one child succeed in business ownership. (For a copy of either issue, please contact Hank Weatherby.) The third is to design a transition that is fair to all children.
Family Business Transfers Part Five: The Recipe for Success Ingredient 4 Parental Financial Security Trumps All	In the first four parts of this series on family business transfers, we described the obstacles to such a transfer and the first three ingredients of a specific recipe for creating a successful intergenerational transfer. The first ingredient in that recipe is to engage in the same Seven Step Exit Planning Process™ that all savvy owners undertake to achieve a successful exit—modified for family business owners. The second is to allow only one child succeed in business ownership. The third is to design a transition that is fair to all children.
Selecting the Right Exit Path Transferring Ownership to Children	As discussed in the previous issue of The Exit Planning Review™, the purpose of Exit Planning is for you to achieve your financial and lifestyle objectives after you leave your business. One of the fundamental objectives that needs to be decided early in the Exit Planning Process is selecting your successor.
Selecting the Right Exit Path: Sale to Other Owners or Employees	As discussed in the previous issue of The Exit Planning Review™, it is important to select your successor early in the Exit Planning Process. One of the great advantages of having other owners in your business is that they can be your means for retirement. Especially with smaller businesses, a common Exit Planning technique is to have a younger individual buy into your business while you are still active. Upon your exit, the younger owner will purchase your remaining stock.

Weatherby & Associates, PC

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