Tag Archives: Succession + Exit Planning
Some things you just have to do right the first time, or you risk locking in problems and limiting potential.
Choosing the right entity for your new venture—whether LLC, partnership, S corporation or C corporation—is one of those things.
To raise money from venture capitalists or institutional investors, you pretty much need to be a C corporation. If you want limited liability, don’t form a general partnership. If you want to both own and be employed by your business—or compensate employees with (continue reading…)
Succession planning isn’t easy. You come face to face with the fact that, inevitably, your business will go on without you.
But if you’re a family or closely held business owner, planning for your eventual departure from the business is critical.
Family businesses comprise more than two-thirds of all businesses in this country, including a significant percentage of the Fortune 500. Nearly 90 percent of family business owners intend for their businesses to remain family owned. Yet history tells us that the odds (continue reading…)
Last month, life delivered Michael a wake-up call in the form of a mild heart attack.
A widower of 58 with a grown family, Michael is a successful entrepreneur with a thriving family business.
And like the vast majority of family business owners, he hopes his business will remain in the family as a source of financial security and employment for generations to come.
Regrettably, the odds are not in his favor.
The Crisis in Family Business Succession
The statistics for family business succession are dismal: (continue reading…)
Valuing a privately held business is a complex–and generally expensive–proposition. So, why bother?
Lauren Donnelly didn’t think her company needed a valuation. Then she turned 55 and began to consider succession plans and exit strategies. That same year, she briefly separated from her husband and, as a result, decided to update her estate plan. Her company also landed a major new client, which meant she needed a significant inflow of capital for new equipment to fund growth.
Succession planning, estate planning, divorce, (continue reading…)