Ohio Business Coach Ralph Berge » family business succession planning http://www.ralphberge.com Top Ohio Business Coach Tue, 26 Apr 2011 20:48:29 +0000 en hourly 1 http://wordpress.org/?v=3.1 Build Survival into Your Business… http://www.ralphberge.com/195-build-survival-into-your-business.htm http://www.ralphberge.com/195-build-survival-into-your-business.htm#comments Mon, 25 Jan 2010 13:59:26 +0000 Ralph Berge http://www.ralphberge.com/?p=195 Successful business owners share many admirable qualities. They are smart, hard-working, and focused. Unfortunately, despite the hard work factor, Dun & Bradstreet reports that only nine percent of small businesses, with fewer than twenty employees, survive for ten years.  

Running a small business takes an inordinate amount of time and energy, which often leaves owners too distracted to focus on other areas of their lives, which causes many family business problems. When a business is a key component of family wealth, however, it is critical to incorporate family business succession planning to secure its long-term stability. After all, for most business owners, the business represents their single most valuable asset. Generally, it constitutes 90 percent of their wealth. Taking steps to safeguard a business, such as developing a  business exit strategy, helps ensure its long-term survival and success and protect an asset that often represents a life’s work. 

Invest your time in building your business by talking with Ralph Berge, Cleveland business coach about family business planning.

]]> http://www.ralphberge.com/195-build-survival-into-your-business.htm/feed 0 Prove the Profitability http://www.ralphberge.com/178-prove-the-profitability.htm http://www.ralphberge.com/178-prove-the-profitability.htm#comments Mon, 23 Nov 2009 14:31:32 +0000 Ralph Berge http://www.ralphberge.com/?p=178 Be able to prove the profitability of your business. Most owners of small businesses use them to provide for a range of non-operational expenses. Make sure you keep supporting records of all these expenses as prospective buyers will be as unimpressed as taxation authorities by claims without adequate documentation.

Your bookkeeping should be easy to understand, consistent from year to year, and maintained in such a way that any prospective buyer will be convinced of its authenticity. This will also make it easier to get an accurate valuation when determining an asking price. Your exit strategy must be planned and documented. Family business succession planning experts tell you: If it is documented the value of your business grows. Showing growth is very attractive to buyers of your business.

]]> http://www.ralphberge.com/178-prove-the-profitability.htm/feed 0 Why Decide Today to Leave My Business in Five Years? http://www.ralphberge.com/148-why-decide-today-to-leave-my-business-in-five-years.htm http://www.ralphberge.com/148-why-decide-today-to-leave-my-business-in-five-years.htm#comments Mon, 03 Aug 2009 14:06:56 +0000 Ralph Berge http://www.ralphberge.com/?p=148 If you are an owner who isn’t sure about what you want, or when you want to leave, why is it so important to decide to act today? Why can’t you wait? 

·         Preparing and transferring a company for top dollar takes time—on average about 5 years. Most of those years will be spent preparing the business for the transfer. If you decide to sell to employees or children (two groups who rarely have any money), they’ll need that time to earn the money to pay you for your interest. You need to be working on family business succession planning.

·         More time often equals greater reductions in risk. Time can be used to design and implement income tax-saving strategies, build value, strengthen your management team, begin a gradual transfer of ownership (not control) to key employees or children. If you wait too long, you probably won’t have time to implement these strategies and you’ll likely end up transferring your business on less-than-ideal terms.

·         The market does not operate on your schedule and may not be paying peak prices when you are ready to sell to an outside party. Witness the state of the M&A market in 2008 and 2009: activity is almost non-existent in many business sectors and down in almost all. 

If leaving a company you’ve worked so hard to build and having little or nothing to show for it, is unacceptable to you, begin planning for succession today.

]]> http://www.ralphberge.com/148-why-decide-today-to-leave-my-business-in-five-years.htm/feed 0 Part – 7…Five MORE Things to Consider When Selling Your Business http://www.ralphberge.com/106-part-7%e2%80%a6five-more-things-to-consider-when-selling-your-business.htm http://www.ralphberge.com/106-part-7%e2%80%a6five-more-things-to-consider-when-selling-your-business.htm#comments Mon, 11 May 2009 14:39:57 +0000 Ralph Berge http://www.ralphberge.com/?p=106 Studies indicate that the average business sells in 6 to 18 months from start to close. Once a letter of intent has been signed, the due diligence and closing process usually takes 30 to 90 days.

 

How can you as a business owner keep the sales process moving forward? Family business succession planning should start years in advance of the sale. It can begin with a simple “to-do” list.  Consider these five thing as the beginning of your  list:

 

1.       Hire competent advisors and understand their roles

2.       Screen potential buyers

3.       Differentiate your business by creating a niche

4.       Make sure partners / decision makers are on board with the decisions

5.       Plan for training and transition

 

Invest your time in building your business by talking with Ralph Berge, Cleveland business coach about family business planning.

]]> http://www.ralphberge.com/106-part-7%e2%80%a6five-more-things-to-consider-when-selling-your-business.htm/feed 0 Part – 2…Five MORE Things to Consider When Selling Your Business http://www.ralphberge.com/96-part-%e2%80%93-2%e2%80%a6five-more-things-to-consider-when-selling-your-business.htm http://www.ralphberge.com/96-part-%e2%80%93-2%e2%80%a6five-more-things-to-consider-when-selling-your-business.htm#comments Wed, 29 Apr 2009 15:30:24 +0000 Ralph Berge http://www.ralphberge.com/?p=96 The time has come to sell your business. Are you ready? Is this your idea or is it dictated by the market? If you are concerned about these questions, talk to a business coach about family business succession planning and begin working on these five things now:

1.       Understand seller financing pros & cons and how to structure

2.       Value stream map processes and materials

3.       Clean facility

4.       Improve appearance on the internet

5.       Solidify workforce

]]> http://www.ralphberge.com/96-part-%e2%80%93-2%e2%80%a6five-more-things-to-consider-when-selling-your-business.htm/feed 0 Five Things to Consider When Selling Your Business http://www.ralphberge.com/93-five-things-to-consider-when-selling-your-business.htm http://www.ralphberge.com/93-five-things-to-consider-when-selling-your-business.htm#comments Mon, 27 Apr 2009 15:21:47 +0000 Ralph Berge http://www.ralphberge.com/?p=93 Family business succession planning is an often overlooked, but extremely important part of any businesses’ plan. This step of your business plan outlines your exit strategy. It may seem strange to develop an “up-front” strategy to leave your business, but potential investors want to know your long-term plans. Here are first five things you must know:

1.       Understand different types of buyers

2.       Understand how to calculate Seller’s Discretionary Earnings

3.       Understand different ways to value a business

4.       Understand that different buyers pay different prices

5.       Understand deal structure – asset vs. stock

 

This article is the first in a series that we will be discussing 50 Things owners must consider to develop a business/ exit planning process.

]]> http://www.ralphberge.com/93-five-things-to-consider-when-selling-your-business.htm/feed 0 How to Exit Your Business? http://www.ralphberge.com/61-how-to-exit-your-business.htm http://www.ralphberge.com/61-how-to-exit-your-business.htm#comments Wed, 08 Apr 2009 15:00:36 +0000 Ralph Berge http://www.ralphberge.com/?p=61 Begin with the end in mind…in other words; plan a graceful (and profitable) exit from the start. Family business succession planning is an often overlooked, but extremely important part of any businesses’ plan. This step of your business plan outlines your exit strategy. It may seem strange to develop an “up-front” strategy to leave your business, but potential investors want to know your long-term plans. Your exit plans need to be clear in not just in your own mind, but in a written document because they will dictate how you operate the company. For example, if you plan to get listed on the stock exchange, you’ll want to follow certain accounting regulations from day one. If you plan to pass the business to your children, you’ll need to start training them at a certain point.

Here’s a look at some of the available strategies for entrepreneurs and businesses for sale in Ohio:

Potential Exit Strategies for your business plan:

Merge: Sometimes, two businesses can create more value as one company. If you believe such an opportunity exists for your firm, then a merger may be your ticket to exit. If you’re looking to leave entirely, then the merger would likely call for the head of the other involved company to stay on. If you don’t want to relinquish all involvement, consider staying on in an advisory role.

Be acquired: Other companies might want to acquire your business and keep its value for themselves. Make sure the offered sale price meshes with your business valuation. You may even seek to cultivate potential acquirers by courting companies you think would benefit from such a deal. If you choose your acquirer wisely, the value of your business can far exceed what you might otherwise earn in a sale.

Sell: Selling outright can also allow for an easy exit. If you wish, you can take the money from the sale and sever yourself from the company. You may also negotiate for equity in the buying company, allowing you to earn dividends afterwards — it clearly is in your interest to ensure your firm is a good fit for the buyer and therefore more likely to prosper.

 Talk to Ohio Business Coach, Ralph Berge about planning to exit your business

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