By Maurie Cashman Sometimes the answers are simple but not obvious, particularly when the problem is something we see every day. Can you solve the following simple problem? (Note, you have 20 seconds to answer) I often come across problems like this when performing a business valuation or when beginning to work on an ownership transition plan. Things will jump out during analysis of a business that are simply not visible to the business owner.
By Maurie Cashman In the past two weeks we’ve looked at several key elements of your buy-sell agreement and the transfer events that can trigger a buyout. Let’s look at the types of changes that can transform that robust buy-sell you created years ago into a cumbersome and potentially dangerous relic. We’re also including a checklist that will help you assess the sustainability of your buy-sell agreement.
By Maurie Cashman Last week, we discussed what a buy-sell agreement is and why you should dust it off, take a second look at it, and call your advisors to update it. This week we’ll look at the incidents that can occur during the lifetime of a business that can be managed by a carefully designed and well-maintained buy-sell agreement. One agreement can impartially and fairly treat all parties when bad things happen.
By Maurie Cashman The buy-sell agreement is one of the most important documents that the owners of a closely held business will ever sign. This agreement controls the transfer of ownership when certain events occur among shareholders including death or disability, an involuntary termination or retirement, divorce and disputes. Last week we talked about the need to perdiodically re-allocate resources within your business. One of the resources that is often overlooked is the buy-sell agreement.
By Maurie Cashman You need to be re-allocating resources in your business much as you would in an investment portfolio. The resources you have available in your business include products, facilities, management, employees, and overhead. These need to be adjusted periodically in response to business performance, competition, customer needs, industry and economic changes, business strategy and your ownership transition strategy.
By Maurie Cashman Are you managing agreement effectively in your business? This is probably not a question you take time to consider often. So much air is sucked out of the room by the more popular topic of conflict management that we don’t take much time to talk about its evil twin – the seeming lack of conflict. In “It Depends on Where You Start” I talked about the importance of having a solid set
By Maurie Cashman How you execute your ownership transition plan depends on where you start. I was reminded of this while driving to San Antonio with my wife this week. I am taking a course to become certified in business valuations and we decided to combine this with a little site-seeing along the way. We decided to take a slight detour in Kansas City to visit a sick friend who is in a rehab
By Maurie Cashman Last week I rode part of RAGBRAI and on the first stop between Ottumwa and Washington I stopped at the Farm Kids tent for a breakfast burrito. As we were getting in line I struck up a conversation with the man in front of me. We talked about RAGBRAI 2016 and it soon became apparent that he was not from around here. I asked him where he was from and he said Tokyo.
By Maurie Cashman Ensuring that your chosen one is willing and able to assume managerial duties and having a Plan B are the last two pieces of a family business transition plan that must be put into place. In the first five parts of this series on family business transfers, we described the obstacles to a family transfer, the advantages of limiting ownership to one child, being fair to all children, and the importance of
By Nathan Cashman Pokemon Go is the hottest thing out there right now. We were even talking about it on the golf course this week. I sent this article to my kids asking tongue-in-cheek if it is the end of the world as we know it and got the following response from my 21 year-old son. As we think about building value in our businesses, it would be wise to listen to the next generation.