In our last newsletter we discussed the need to Close the Gap Between You and Your Successful Financial Future, the process that you and your advisors can use to establish two important guideposts: The amount of money you will need to live a comfortable post-transition life; and The current value of your company. If, as is the case for most owners, you discover a gap between the two numbers, you can begin to close the
Last week, we reviewed the situation of fictional owner, Joe Davolla. He and his advisors had identified a $1,000,000 gap between the current value of his company, and the value he’d need from it in five years when he plans to complete the transition of his ownership. What Joe needed, and what many owners need is to grow business value, and grow it quickly and sustainably over several years. To accomplish this, owners need to
DO YOU KNOW YOUR GAP? By Maurie Cashman After taking a bit of a sanity break last week, let’s get back to business by talking about the gap that you may need to fill between your objectives and the reality of your ability to transition ownership in your business.
By KERRY HANNON Published: September 9, 2013 MICHAEL LOWE was bored with retirement. He was doing yoga five times a week and reading voraciously after leaving the work force in 2008. He had enjoyed a three-decade legal career, most of it spent as a corporate lawyer for Verizon. The hitch was that his wife, Melissa Kroning, 61, registrar of the Smithsonian American Art Museum, was still working full time. So globe-trotting was out. “I was
By Maurie Cashman Somewhere over the rainbow, skies are blue And the dreams that you dare to dream, Really do come true. What dreams are you working for? Last week we talked about enthusiasm for your work and what can happen when you do or don’t have it. It is gratifying to get the opportunity to step back and see the fruits of your hard labor and to stop and smell the roses and it
Is the Enthusiasm Still There? By Maurie Cashman After expressing great enthusiasm for my business in a presentation a wise friend once asked me this: “Will you know when to quit?” It rocked me back on my heels a bit and made me think about it seriously as I was in the early startup days. The answer I finally gave to myself was: “I will never quit, but I will stop if I lose my
Buyers Will Focus on Your Geographic Density By Maurie Cashman Last week we considered Private Equity Groups as an option for consideration in your ownership transition plan. All buyers will focus on key traits in your business, one of which is geographic density. As you consider your business sale, a large part of your transition planning should be focused on the traits in your business that a buyer would find as either strengths or weaknesses.
Characteristics, Criteria and Deal-Making By Maurie Cashman For the past several weeks we have been discussing various buy-sell agreements, culminating in the Texas Shootout last week. This week we’ll shift our attention to the various types of sales transactions and buyers that may be considered for your company should you decide to sell to an outside party. We will begin with Private Equity Groups or PEG’s. Five Characteristics of Private Equity Groups: 1) A Private
Select owner’s are being invited to participate in a survey for privately held small and middle market businesses. Many of the present studies of owner state of readiness to transition ownership are pre-recession. You are being asked to participate in this survey because we think you would find the information and process beneficial. Kent State University, The Exit Planning Institute, Grant Thorton, PNC Bank, the Ohio Employee Ownership Center and Aspen Grove Investments are collaborating
Last week we discussed the threat of loss of talent to your business as a continuity issue. Interest rates are making a significant move higher. This is creating, and will likely continue to have, multiple impacts on businesses and their continuity strategies. Joe Jay recently began working with Aspen Grove Investments and writes a newsletter for his business, Midwest Financial. He recently had a commentary on interest rates and wanted to challenge him on how