At Financially Simple, we strive to ensure you walk a financially simple path and one of the ways we do that is through earning certifications. We are proud to announce that another badge of honor has been bestowed upon Justin Goodbread. He has now added the title of Certified Value Growth Advisor™ (CVGA™) to his list of CERTIFIED FINANCIAL PLANNER™ and a Certified Exit Planning Advisor™, as well.
When it comes to transitioning yourself out of your company, one method is to sell your business to employees. A method of doing this is by setting up an ESOP, or an Employee Stock Ownership Plan. Although the implementation can get complicated, ESOPs can offer sellers and employees many benefits over other stock buyouts. Let’s discuss the pros and cons of this particular way to sell your company.
CONGRATULATIONS, friend! You just sold your business!!! You’ve realized success! Assuming that the statistics from the Exit Planning Institute are true, and 80% of businesses below 50 million dollars in revenue never sell, then you’ve just joined an elite minority of business owners. Way to go! You’ve just done something that few people have ever done. But what do you do now? If you’ve just received a financial windfall, what do you do with the money after the sale of your business?
In our Building a Sellable Business series, both parties have now satisfied. We’re ready to sit down at the closing table. Can you believe it? After a “mere” 35 articles, months of prework, and thousands of hoops jumped through, we’ve reached the actual sale of your business! But what happens next? Where do you go to sign paperwork, and what can you expect to happen when you get there? Well, let’s dive in and look at what you can expect at the closing table of a business sale.
We’ve reached the point in our Building a Sellable Business series where you’re ready to close on your business sale! Maybe, you’ve even scheduled the closing. You’ve got your signature pen in hand, and you’re ready to sign on the dotted line. But out of nowhere, plans change. While some changes can be good, most changes before the sale of your business negatively affect the closing of your business. Changes usually mean that the buyer has changed his mind. So let’s look at 4 common reasons a buyer backs out of the sale of a business. Then, let’s figure out how to handle those disruptions.
Not long ago I received a Twitter message asking “Justin, what happens in a typical quarterly business planning meeting?” Today I’m giving you a little insight into just such a meeting I had recently. While I can’t go into tons of detail due to confidentiality issues, I can tell you about a meeting I had with one of my clients – a first-generation business owner.