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
This Month, the Exit Planning Institute started a new feature with an article on a different member each month. I am proud to say that Maurie Cashman was the first advisor to be profiled by EPI. I hope you find the interview ‘Meet CEPA Member Maurie Cashman’ both informative and informational. Dennis Gano, CAE EPI: Maurie, what is the one thing you are most proud of that you have accomplished inside and outside of the industry? Cashman: Inside
Excuses to Exit Planning In the prior issue of this newsletter, we attempted to take the air out of the most common argument owners make for ignoring the planning necessary to successfully exit their companies: They believe that their businesses aren’t worth enough to meet their financial needs. “When it is,” they claim, “that’s when I’ll think about leaving.” Three other common arguments are: I will be required to work years for a new owner.
Business Continuity Concerns Most, if not all, business owners have been approached by at least one of their advisors with the ever-popular question, “What would happen to your business if you died or became disabled?” Few business owners fail to recognize this question for the thinly-veiled pitch to buy insurance that it is. Our goal is not to discourage you from buying life or disability insurance. Far from it. Purchased in the proper amounts and
Employee Goals are Critical to Exit Planning One of the key things you as an owner can do to increase the value of your business is to set goals for your employees that are in sync with your exit strategy. This may mean many things depending on your objectives and the gaps that need to be closed to achieve those objectives. If you have set goals in the past your thought process may need to
Monday evening I had the opportunity to witness a music lesson performance that I found to be truly astonishing and found myself thinking about how inspiring it would have been had every business owner or leader in our community been in that audience. The Linn Mar Community Schools put on their Holiday Concert III, which consists of performances by their top Chamber Choir, Symphony Strings, and Wind Ensemble. There were 186 musicians in all and
Incentive plan for key employees! In our previous blog we discussed the primary reason that it is so important to motivate your key employees to stay with your company. Ultimately, your ability to get top dollar for your company may depend on your ability to create, motivate and keep good management. That article further described the four characteristics of a successful incentive plan. The fourth characteristic of a successful incentive plan is that key employees