Posted on Wed, Feb 08, 2012
"Finding Your New Owner:
For Your Business, For Your Life" by Jack Beauregard
We have been nominated for the
4th Annual Small Business Book Awards
Read the Reviews: Finally a book that is loaded with optimism…Accessible in its language and layout,
Finding Your New Owner leads business owners through a straightforward process [that shows how] a business owner's legacy can be rich, profound and majestic -- a testament to a life well-lived…”
- Tom Deans Ph.D. - Award Winning Speaker and Author of the Best Selling
Book Every Family's Business “I have sadly observed too many business founders who bury themselves, almost literally, in their companies...
Finding Your New Owner brightly illuminates…a purposeful journey through the transition from success as a business owner to significance as a family and community leader…”
- John A. Warnick – founder,
The Purposeful Planning Institute, and Estate Planning attorney
In
Finding Your New Owner…Jack offers with sensitivity and insight…a wealth of ideas and a step-by-step approach [for owners in figuring out] how to leave their companies. Every business owner should read this book!”
- Wayne Vanwyck, CEO of the Achievement Centre and author of the book
The Business Transition Crisis “
Finding Your New Ownerhelps business owners ask the tough questions and forces them to work ON their business not just IN it. A great read with long-term impact!”
- Paige Arnof-Fenn | Founder & CEO, Mavens & Moguls
“…I love the stories that [Jack] used for examples, and I also think the exercises in
Finding Your New Owner, will help the business owner conceptualize the necessary steps that are needed to be taken to have a satisfying and financially secure life moving forward.”
- Linda Cohan MSW, CSC |Executive/Leadership Coach
Click here to Vote for us: You can vote more than once (we will)
voting ends Feb. 16, 2012
THANKS!
To your Success and Significance,
Paul Cronin and Jack Beauregard
About the Small Business Book Awards The Small Business Book Awards, now in its fourth year, enable the small business community to nominate, show their support for, and vote on their favorite business books. The top 10 winners will be selected by readers based on number of votes as the Best Small Business Books of 2012, while the top five vote-getters in each category become Category Winners. Voting commences February 1, 2012. In last year’s Awards, over 41,000 votes were cast by the community.
The Small Business Book Awards initiative is produced by
Small Business Trends, an award-winning online publication, which along with its sister sites, serves over 4,000,000 small business owners, stakeholders and entrepreneurs annually.
The Successful Transition Planning Institute of Cambridge, MA, has step-by-step programs that help successful individuals such as business owners, executives and professional practitioners learn why, how and when to plan a transition from their current life to a new one of meaning and purpose. Programs are deliverd by independent Transition Planning Consultants. STPI also offer education to advisors on how to guide their clients through change. Our highly acclaimed new book, "Finding Your New Owner: For Your Business, For Your Life" - a Guide to a New Paradigm for Boomer Business Owners is available everywhere, Click Here. Programs are based on 20 years of research and practice. (see video).
Posted on Tue, Feb 07, 2012
The call came to my cell phone after 5PM on a Monday. There was an edge of panic in the caller's voice, a business intermediary whom I'll call Tom.
Tom asked me for some help. He had a deal all put together, the selling husband and wife were going to be "all set". Tom needed the deal to close to make his numbers.
Problem: The sellers had just visited their industry trade show and realized that they we no longer going to see their old friends anymore. As they sat in their second home (where the winters are warm) they could not see a future for themselves. So they panicked and called Tom to say, "the deal is off".
Tom asked if they could put things on hold until he could get an expert to speak with them about their personal concerns. The sellers agreed.
This is a text-book example of owners who have not done much transition planning. If Tom had persuaded the sellers to partake in the Owner's Clarification Report, a 20 minute survey of the Owners' emotional readiness, he would have prevented the issue from becoming a crisis.
So, what will the owners do next? Follow this blog to learn more....
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To download a free presentation on The Owner's Clarification Report click the button below:
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Paul Cronin is partner and Director of Business Development at STPI, the Successful Transition Planning Institute of Cambridge, MA. STPI trains advisors to show owners how to "Think", "Live" and "Decide" what to do with their companies and plan for a dynamic, new life. Paul can be reached at 978-749-9546, Facebook, Linkedin, Twitter, Google+, or at Contact Us
TO POST COMMENTS, CLICK HERE
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The Successful Transition Planning Institute of Cambridge, MA, has step-by-step programs that help successful individuals such as business owners, executives and professional practitioners learn why, how and when to plan a transition from their current life to a new one of meaning and purpose. Programs are deliverd by independent Transition Planning Consultants. STPI also offer education to advisors on how to guide their clients through change. Our highly acclaimed new book, "Finding Your New Owner: For Your Business, For Your Life" - a Guide to a New Paradigm for Boomer Business Owners is available everywhere, Click Here. Programs are based on 20 years of research and practice. (see video).
Posted on Tue, Feb 07, 2012
"Finding Your New Owner:
For Your Business, For Your Life" by Jack Beauregard
We have been nominated for the
4th Annual Small Business Book Awards
Read the Reviews: Finally a book that is loaded with optimism…Accessible in its language and layout,
Finding Your New Owner leads business owners through a straightforward process [that shows how] a business owner's legacy can be rich, profound and majestic -- a testament to a life well-lived…”
- Tom Deans Ph.D. - Award Winning Speaker and Author of the Best Selling
Book Every Family's Business “I have sadly observed too many business founders who bury themselves, almost literally, in their companies...
Finding Your New Owner brightly illuminates…a purposeful journey through the transition from success as a business owner to significance as a family and community leader…”
- John A. Warnick – founder,
The Purposeful Planning Institute, and Estate Planning attorney
In
Finding Your New Owner…Jack offers with sensitivity and insight…a wealth of ideas and a step-by-step approach [for owners in figuring out] how to leave their companies. Every business owner should read this book!”
- Wayne Vanwyck, CEO of the Achievement Centre and author of the book
The Business Transition Crisis “
Finding Your New Ownerhelps business owners ask the tough questions and forces them to work ON their business not just IN it. A great read with long-term impact!”
- Paige Arnof-Fenn | Founder & CEO, Mavens & Moguls
“…I love the stories that [Jack] used for examples, and I also think the exercises in
Finding Your New Owner, will help the business owner conceptualize the necessary steps that are needed to be taken to have a satisfying and financially secure life moving forward.”
- Linda Cohan MSW, CSC |Executive/Leadership Coach
Click here to Vote for us: You can vote more than once (we will)
voting ends Feb. 16, 2012
THANKS!
To your Success and Significance,
Paul Cronin and Jack Beauregard
About the Small Business Book Awards The Small Business Book Awards, now in its fourth year, enable the small business community to nominate, show their support for, and vote on their favorite business books. The top 10 winners will be selected by readers based on number of votes as the Best Small Business Books of 2012, while the top five vote-getters in each category become Category Winners. Voting commences February 1, 2012. In last year’s Awards, over 41,000 votes were cast by the community.
The Small Business Book Awards initiative is produced by
Small Business Trends, an award-winning online publication, which along with its sister sites, serves over 4,000,000 small business owners, stakeholders and entrepreneurs annually.
The Successful Transition Planning Institute of Cambridge, MA, has step-by-step programs that help successful individuals such as business owners, executives and professional practitioners learn why, how and when to plan a transition from their current life to a new one of meaning and purpose. Programs are deliverd by independent Transition Planning Consultants. STPI also offer education to advisors on how to guide their clients through change. Our highly acclaimed new book, "Finding Your New Owner: For Your Business, For Your Life" - a Guide to a New Paradigm for Boomer Business Owners is available everywhere, Click Here. Programs are based on 20 years of research and practice. (see video).
Posted on Mon, Feb 06, 2012
"Finding Your New Owner:
For Your Business, For Your Life" by Jack Beauregard
We have been nominated for the
4th Annual Small Business Book Awards
Read the Reviews: Finally a book that is loaded with optimism…Accessible in its language and layout,
Finding Your New Owner leads business owners through a straightforward process [that shows how] a business owner's legacy can be rich, profound and majestic -- a testament to a life well-lived…”
- Tom Deans Ph.D. - Award Winning Speaker and Author of the Best Selling
Book Every Family's Business “I have sadly observed too many business founders who bury themselves, almost literally, in their companies...
Finding Your New Owner brightly illuminates…a purposeful journey through the transition from success as a business owner to significance as a family and community leader…”
- John A. Warnick – founder,
The Purposeful Planning Institute, and Estate Planning attorney
In
Finding Your New Owner…Jack offers with sensitivity and insight…a wealth of ideas and a step-by-step approach [for owners in figuring out] how to leave their companies. Every business owner should read this book!”
- Wayne Vanwyck, CEO of the Achievement Centre and author of the book
The Business Transition Crisis “
Finding Your New Ownerhelps business owners ask the tough questions and forces them to work ON their business not just IN it. A great read with long-term impact!”
- Paige Arnof-Fenn | Founder & CEO, Mavens & Moguls
“…I love the stories that [Jack] used for examples, and I also think the exercises in
Finding Your New Owner, will help the business owner conceptualize the necessary steps that are needed to be taken to have a satisfying and financially secure life moving forward.”
- Linda Cohan MSW, CSC |Executive/Leadership Coach
Click here to Vote for us: You can vote more than once (we will)
voting ends Feb. 16, 2012
THANKS!
To your Success and Significance,
Paul Cronin and Jack Beauregard
About the Small Business Book Awards The Small Business Book Awards, now in its fourth year, enable the small business community to nominate, show their support for, and vote on their favorite business books. The top 10 winners will be selected by readers based on number of votes as the Best Small Business Books of 2012, while the top five vote-getters in each category become Category Winners. Voting commences February 1, 2012. In last year’s Awards, over 41,000 votes were cast by the community.
The Small Business Book Awards initiative is produced by
Small Business Trends, an award-winning online publication, which along with its sister sites, serves over 4,000,000 small business owners, stakeholders and entrepreneurs annually.
The Successful Transition Planning Institute of Cambridge, MA, has step-by-step programs that help successful individuals such as business owners, executives and professional practitioners learn why, how and when to plan a transition from their current life to a new one of meaning and purpose. Programs are deliverd by independent Transition Planning Consultants. STPI also offer education to advisors on how to guide their clients through change. Our highly acclaimed new book, "Finding Your New Owner: For Your Business, For Your Life" - a Guide to a New Paradigm for Boomer Business Owners is available everywhere, Click Here. Programs are based on 20 years of research and practice. (see video).
Posted on Tue, Jan 24, 2012
By Michael Coyle, CenterPoint Business Advisors
MMS, Inc., a computer service business, had survived recent industry turbulence through the persistent efforts of its owners, Ralph McMillan and Janet Shaw. In fact, MMS had enjoyed good cash flow for the past three years and its future looked rosy. Successfully meeting these challenges made Ralph (age 59) more anxious than ever to leave the business and Janet (age 48) more than ready for Ralph to leave. But neither owner had a clear idea of how to proceed, who to ask for guidance or even how to take the first step.
Janet and Ralph had to find the starting line before they could run the course to the successful dissolution of their partnership.
Ralph’s Tasks
First, Ralph must assess his income needs and timing of his exit. He must determine how much of the purchase price he needs (or wants) on the day he leaves and how much he is willing to receive after he leaves (a Retirement Needs analysis). This is a very different question from how much his interest is worth yet the questions are related because the cash Ralph needs must be attainable from the sale of his interest.
Second, Ralph must obtain an independent valuation of his ownership interest.
Note: Ralph is unwilling to leave unless he exits with full value for his ownership interest (hence the need for the valuation) and unless that value is enough to meet his retirement needs (hence the need for a retirement income needs analysis).
Janet’s Tasks
Janet wants to balance the risk/liability she and the business will assume in Ralph’s buy-out with the opportunity for continued growth in the value of business interest. Since Janet is likely to be unwilling to buy Ralph’s interest—if doing so puts her (or the business) at too great a financial risk—she must secure a professional’s projection of the company’s future cash flow.
This cash flow projection with enable Janet to determine if the business will likely have enough cash flow (after Ralph leaves) to finance the purchase of Ralph’s interest without stifling the growth and prosperity of the business.
Ralph’s Exit Plan Design
Ralph’s Exit Plan should be designed to:
• Use the available cash flow in the most tax-efficient manner possible.
• Plan the long-term ownership structure of the company.
For example, after Ralph is gone, what does Janet (the remaining owner) intend to do with the business? Does it not make sense to consider her future exit when Ralph’s exit is being designed and implemented?
Ralph’s Alternatives
As Ralph contemplates his exit, perhaps Janet should consider:
1. Selling all of the ownership to an outside party. To do so, the business must be marketable and Janet (and perhaps even Ralph) may need to remain for a year or more after the sale. In this scenario, Ralph has a better chance of receiving at least the bulk of the purchase price.
2. Selling Ralph’s interest to key (or all) employees. This strategy depends on the existence of motivated management willing to assume ownership. Often, a partial sale to a younger management group (keeping control firmly in the hands of the remaining principal owner) makes great sense. This strategy starts to pave the way for the eventual sale of the remaining owner’s interest to this group, can be a great motivation tool and handcuffs this management team to business.
3. Selling all (or just Ralph’s interest) to an Employee Stock Ownership Plan (ESOP). This design can potentially offer tax and cash flow savings for both Ralph and the buyers.
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Advertisement
New Book
by Jack Beauregard
- a guide to a new paradigm for Baby Boomer business owners
**************************************************************************************************************************************************
These are just a few of the many ways to design the exit of a co-owner.
Before any group of co-owners can create a successful exit plan they must employ professionals to:
1. Assess the departing owner’s needs (a retirement income needs analysis);
2. Secure an independent valuation of ownership interests; and
3. Assess the remaining owner’s risk tolerance (dependent on a cash flow projection).
This process can help you to create a buy-out plan that helps you to achieve your buy-out goals.
This article was originally posted in the Exit Planning Review (TM) by the Business Enterprise Institute, Inc. Used with persmission.
TO POST COMMENTS, click on comments below or (click here)
About the Author:
Michael Coyle is the founder of CenterPoint Business Advisors, Inc. in NH providing exit planning, business consulting, valuation and intermediary services throughout New England Read more>>
The Successful Transition Planning Institute of Cambridge, MA, has step-by-step programs that help successful individuals such as business owners, executives and professional practitioners learn why, how and when to plan a transition from their current life to a new one of meaning and purpose. Programs are deliverd by independent Transition Planning Consultants. STPI also offer education to advisors on how to guide their clients through change. Our highly acclaimed new book, "Finding Your New Owner: For Your Business, For Your Life" - a Guide to a New Paradigm for Boomer Business Owners is available everywhere, Click Here. Programs are based on 20 years of research and practice. (see video).
Posted on Thu, Jan 19, 2012
In a recent article of the Australian on-line magazine AdelaideNow, 68% of family busineses have owners ages 50+. Two thirds said NO family members had an interest in taking over the business. Amazingly, only 25% said they considered succession a "problem". How can this be considered leadership?
What were they THINKING? Can owners in the US and elsewhere be much different? I rather doubt it.
At the Successful Transition Planning Institute (STPI), we call this attitude the "R&D method" of transition planning: "Repress and Deny".
Simply put, EVERY business owner will exit their business someday. They have two choices:
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plan for it on their terms
-
let others plan it for them
Having been a business owner, I know that owners like control. Yet the fear of dealing with the inevitable, as well as the unknown, causes too many to simply default to "I'll plan for that later" (really never). There is even a subset that won't plan for it to "prove" that "only they" could run the business properly. If the business fails after they're dead, it somehow affirms their "leadership". This attitude is simply pathological and may leave a trail of financial ruin in the owner's wake.
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Advertisement
New Book
by Jack Beauregard
- a guide to a new paradigm for Baby Boomer business owners
**************************************************************************************************************************************************
Owners need to put together a small team of collaborative advisors; it is not rocket science and need not break the bank either:
-
a business consultant to assess the business's strengths and weaknesses, and to plan an exit strategy
-
a Transition Planning Consultant to help the owner create a personal plan for leaving the business
-
a financial advisor to make their wealth last a lifetime
-
a business intermediary to make a deal happen
Adding a CPA, attorney and a banker to this team will create more options for the owner, and ultimately, more satisfaction.
So - how can advisors make this happen? (hint - that is why we published the book).
_______________________________________________________________________________________________________________
About the author:
Paul Cronin is partner and Director of Business Development at STPI, the Successful Transition Planning Institute of Cambridge, MA. STPI trains advisors to the show owners how to "Think", "Live" and "Decide" what to do with their companies and plan for a dynamic, new life. Paul can be reached at 978-749-9546, Facebook, Linkedin, Twitter, Google+, or by clicking contact us:
For more information, visit STPI, or see this video.
*****************************************************************************************************************************************************
The Successful Transition Planning Institute of Cambridge, MA, has step-by-step programs that help successful individuals such as business owners, executives and professional practitioners learn why, how and when to plan a transition from their current life to a new one of meaning and purpose. Programs are deliverd by independent Transition Planning Consultants. STPI also offer education to advisors on how to guide their clients through change. Our highly acclaimed new book, "Finding Your New Owner: For Your Business, For Your Life" - a Guide to a New Paradigm for Boomer Business Owners is available everywhere, Click Here. Programs are based on 20 years of research and practice. (see video).
Posted on Thu, Jan 12, 2012
by Wayne Vanwyck, founder The Achievement Centre
Winston Churchill famously called depression his “black dog.”
(editor: This case is a classic example of seller's remorse. The owner failed to plan his new life PRIOR to selling the business. STPI's mission is to prevent this from happening to others)
During my sabbatical in 2008, I interviewed an entrepreneur who had sold his business in 2004 for more money than he knew what to do with. However, soon after the sale he fell ill. He had trouble getting out of bed. It was like having the flu all the time, but the usual treatments had no impact.
Finally, he met with a psychiatrist who diagnosed his symptoms as depression and told him that, “when you sold your business, you died.” Although on one level, he was pleased with growing and selling a successful business, emotionally he was a wreck. The doctor pointed out that, “the person you were before you sold your business no longer exists. You have to reinvent yourself.”
It took this entrepreneur two years to recover from selling his business. By 2008 he was doing well. He was going to the gym every day, watching his diet and reconnecting with his family in an intentional way. He felt ten years younger. As we discussed his journey, he confided, “You’re only the third person I’ve told this to. In a way, I wish I could stand in front of a group of entrepreneurs and tell them what I experienced. But I can’t.” When I asked him why, he replied, “I don’t have the courage to do it.”
I was surprised by his answer. Here was an aggressive entrepreneur who started and grew a business that created thousands of jobs and equity that exceeded his wildest dreams. A man who took incredible risks, negotiated with tough bankers, union leaders and executives, yet he was reluctant to admit he experienced depression. What a stigma we’ve created around mental illness!
Depression is widespread in our world and has been identified by the World Health Organization as a looming threat to productivity and human health. It strikes individuals regardless of socioeconomic status, gender, IQ, or ethnicity. It happens in spite of positive attitude, educational status, or the ‘pull yourself up by your bootstraps’ approach to life common to entrepreneurs.
Depression requires treatment and intervention, often with a combination of medication and behavioural counselling, which can include simple strategies such as:
1. Write what Dr. Martin Seligman calls a “Blessings Journal.” At the end of every day, identify three things from the day for which you are thankful.
2. Connect with people who care. Even though you may feel like isolating yourself, reach out to your social network.
3. Exercise daily.
You may be surprised at the difference these three actions can make in how you feel. For more strategies and helpful research, read Flourish by Dr. Seligman and The Happiness Advantage by Shawn Achor.
About the Author:
Following a successful career as a salesman and sales manager, Wayne Vanwyck founded The Achievement Centre in 1984, a centre dedicated to sales and leadership development. The Achievement Centre International now has principals across Canada, the US, Puerto Rico and the Middle East. He also owns Callright Marketing Services, a professional call centre that does market surveys, customer surveys, lead generation, direct sales and database development work. Callright specializes in the newspaper industry and is one of the foremost suppliers for newspapers across Canada.
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The Successful Transition Planning Institute of Cambridge, MA, has step-by-step programs that help successful individuals such as business owners, executives and professional practitioners learn why, how and when to plan a transition from their current life to a new one of meaning and purpose. Programs are deliverd by independent Transition Planning Consultants. STPI also offer education to advisors on how to guide their clients through change. Our highly acclaimed new book, "Finding Your New Owner: For Your Business, For Your Life" - a Guide to a New Paradigm for Boomer Business Owners is available everywhere, Click Here. Programs are based on 20 years of research and practice. (see video).
Posted on Tue, Dec 27, 2011
The Power of Example
by John A. Warnick, Purposeful Planning Collaborative
“Example is not the main thing in influencing others, it's the only thing”—Albert Schweitzer
Every day, consciously but much more often unconsciously, each of us is transmitting certain behaviors, feelings and lifestyles to others. It is your choice and mine whether that influence will be a positive and lasting influence. To move from the positive but fleeting influence to the memorable and lasting influence requires both intention and action. It is what I call capturing the Power of Example.
The brightest influence of your personal legacy will be the illuminating power of example and selfless sacrifice. The following story, offered by Elaine Dalton as a tribute to her father’s influence on her as a child, is an example of how we can create both a positive and lasting influence:
An elderly widow lived next door to Elaine’s family. Her home was badly in need of paint and exterior maintenance but she didn’t have the money to pay for it. Instead of offering to pay for the painting of the widow’s home, Elaine’s father took a week of vacation time from his job and marshaled his family to assist in the painting project.
At the time Elaine thought that was the greatest family vacation she had ever experienced because her father taught her how to paint. But this selfless act of service had a much more positive and sustaining influence then simply brightening the widow’s home. It created a bright example which burns brightly today in Elaine’s consciousness and inspires her to find ways to serve others. This is how she described her father’s influence:
“My father was my hero. I used to wait on the steps of our home for him to arrive each night. He would pick me up and twirl me around and let me put my feet on top of his big shoes, and then he would dance me into the house. I loved the challenge of trying to follow his every footstep. I still do.”
The wonderful truth about parenting and grandparenting is that we each can be a hero for those who will follow in our footsteps.
What is the one thing in your personal life you would most like to be remembered for? How can you create an opportunity to indelibly imprint this example upon the minds of your young children or grandchildren? When will you start and what will be the first step towards creating this legacy moment or project? Who will help you with this project and hold you accountable to complete the task?
“The legacy of heroes is the memory of a great name and the inheritance of a great example.”—Benjamin Disraeli
This post was originally posted on the "Seedlings" blog by John A. Warnick. Used with permission.
About the author
John A. Warnick ("John A") is the founder of Family Wealth Transitions and Solutions, a consulting firm that assists clients and their advisory teams in the areas of Purposeful Planning, Trust Design & Implementation. He is also founder of the Purposeful Planning Collaborative
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The Successful Transition Planning Institute of Cambridge, MA, has step-by-step programs that help successful individuals such as business owners, executives and professional practitioners learn why, how and when to plan a transition from their current life to a new one of meaning and purpose. Programs are deliverd by independent Transition Planning Consultants. STPI also offer education to advisors on how to guide their clients through change. Our highly acclaimed new book, "Finding Your New Owner: For Your Business, For Your Life" - a Guide to a New Paradigm for Boomer Business Owners is available everywhere, Click Here. Programs are based on 20 years of research and practice. (see video).
Posted on Thu, Dec 22, 2011
12 Deliberate Decisions before Dec 31: personal financial planning
Deliberately choosing the outcomes you want is the best way to put yourself on the path to achieving what is most important to you. My observation is that money is important to most people but really only to the extent that it allows them to live the way they want. So this month's focus is on some ways to both strengthen your financial plan and (more importantly) create stronger connections to those with whom you are closest.
1. Lose the Losers. No, we're not offering marriage, friendship or management advice. We're talking about your portfolio and saying that it's time to harvest investment losses. Certainly if you have holdings (mutual funds, stocks, bonds etc...) in taxable accounts that will produce capital losses (short or long-term) it may make sense to sell them. Please keep in mind that if you then wish to purchase any similar holdings for your portfolio you will need to wait 30 days to avoid the wash-sale rules and claim up to $3,000 on your 2011 tax return.
2. Get Maxed Out ... In a Good Way. Don't max out your time, energy or credit cards but DO max out your company retirement plan, at least up to what your company will match. If possible , with a 401(k) try
to go the distance to hit either $16,500 or $22,000 (with the over-50 catch-up) before year end. Solo Defined benfit plans may allow you to defer much much more and it's not too late for 2011. You don't have to fund it until your tax filing date! For many it makes sense to save as much as you can and it rarely gets easier. Did you know that you can expect to pay $6,500 - $10,000 per year for health care expenses in retirement?
3. Act On Your Charitable Impulses. Do good, feel good and get a break on your tax bill all at the same time. Many institutions that support you are hurting this year and showing your support for them is a wonderful way to walk the talk! Given the low interest rates and current rules, family gifting has never made more sense for those who are fortunate.
4. Learn About Creating Wealth in Relationships. "The Five Love Languages" by Gary Chapman is a wonderful book, and here are the five: 1. Verbal Affirmation, 2. Physical, 3. Acts of Service, 4. Quality Time, 5. Gifts. Pay attention to how you show love and how you feel loved. This works just as much for spouses as it does for children, colleagues and clients. Clearly not all of these "languages" are appropriate for every situation but it helps to be observant. Pay attention to how others give "gifts." It may serve as a clue as to how they feel appreciated. For example, my daughter recently shared this with me: "Mom I feel loved when I am understood and listened to." Hmmm.....
5. Consider Those Who Might Appreciate Verbal Gifts. This could be anything from thanking people publicly for their support to passing on your values to your kids by telling family stories. At work, this could mean taking the time to let the team know what the big picture is and how everyone fits in.
6. Consider Those Who Like to Keep Moving or May Need a Hug. Rather than taking a client to lunch, perhaps he/she would appreciate a brisk walk. Rather than throw a cocktail party, how about sponsoring a yoga class? And within your family consider that elderly people and teenagers need hugs despite their independent demeanor. How about giving a gift certificate for a massage, facial or hair appointment to someone who lives alone. The key is to be respectful, thoughtful and caring enough to notice what others may want or need but would never ask for.
7. Consider Those Who Might Appreciate a Relevant Act of Service. Who in your life would keel over if you made the coffee, got the car washed, or (at work) did the job no one else wants? Somthing small can show that you're tuned in. For kids home from college it could mean a favorite meal. For a spouse returning from a business trip perhaps a weekend devoted to something other than the usual list of chores could prove far better than something sparkly or fashionable: a simple homemade dinner, a fun project or just taking the dog for a walk together.
8. Consider Who In Your Life Could Use Your Quality Time. Whether it is a conversation at the kitchen table, watching a movie or tackling a project together, create some free time and uncluttered space to just "be with" this person (or people).
9. Give What You Can. There are many ways to give, it isn't always necessary to give money. In addition to "treasure" my church, for example also considers gifts to include time and talent.
10. Enjoy "Enough Is Enough". There is so much pressure to do everything perfectly and to please so many people. If you can't afford it...let it go. If you don't have the time...let it go. If you dread it... let it go. What the people in your life really want is for you to be available and at your best, not exhausted, resentful or broke. This is easy to say but without a little determination it seems that buying, doing and overdoing is the default mode.
11. Take Care of Yourself. Exercise, sleep, eat right and sometimes say 'no' so that you can have some down time. Give yourself permission. You can't be at your best for others if you are burned out.
12. Get Your Appointments Scheduled Now. Wouldn't it be nice to wake up on January 1st feeling like the master of your own universe? List out any advisors and doctors who need to be seen and plan a day off in January and (if need be) another in February for those much-needed appointments. If you have kids in college who'll receive financial aid, including merit scholarship applications and some time to fill out the FAFSA as soon as you can in the New Year, you can update it after your taxes are done but you may benefit more by having them to the schools earlier.
As the New Year approaches don't beat yourself up over pounds gained or plans undone. Realize that you'll still be here with the new calendar and able to tackle your goals, dreams and challenges. The Holidays are a wonderful time to practice acceptance. Use the occasion and good will to recharge and focus on affirming your priorities. These dozen decisions will provide you with lasting returns - guaranteed or your money back! Find the IRS retirement plan contribution limits here.
About the Author:
Journey Financial Planners is a fee-only, independent Registered Investment Advisor and financial planning firm in Concord, MA. Peggy McGillin, CERTIFIED FINANCIAL PLANNER™ and principal, is devoted to her clients' meeting their goals and encouraging them to living fully along the way. Journey delivers comprehensive, objective financial planning and investment management for individuals and business owners.
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The Successful Transition Planning Institute of Cambridge, MA, has step-by-step programs that help successful individuals such as business owners, executives and professional practitioners learn why, how and when to plan a transition from their current life to a new one of meaning and purpose. Programs are deliverd by independent Transition Planning Consultants. STPI also offer education to advisors on how to guide their clients through change. Our highly acclaimed new book, "Finding Your New Owner: For Your Business, For Your Life" - a Guide to a New Paradigm for Boomer Business Owners is available everywhere, Click Here. Programs are based on 20 years of research and practice. (see video).
Posted on Tue, Dec 20, 2011
Selling Your Business - Prepare for the Buyer Visit
by Dave Kauppi, The Exit Strategist
In our mergers and acquisitions practice a very important event prior to receiving letters of intent is the buyer visit. Don't be fooled into thinking that this is a simple headquarters tour. Experienced buyers know just the right questions to ask to uncover risks and to discover opportunities. We try to coach our sellers on how to present and how to answer these carefully scripted questions.
Unfortunately, a man or a woman that has called their own shots for the last 25 years is not always receptive to coaching. If we get a feeling that our advice is falling on deaf ears, we schedule the first visit with a buyer that is not the top candidate. Once our seller has made a few tactical errors in this dry run, they are then open to some coaching.
This is what we tell them. Acquiring another company is very risky. Mistakes can damage the buying company. Therefore, a buyer is looking to identify and mitigate risks. Their questioning will focus on what they can expect once they are the owner of your business. Are you bailing on a business that is on a downward spiral? When you leave, will major customers leave with you? Will your key employees stay? Will our company have your strong support in transitioning your knowledge and intellectual capital to our staff?
The number one question is, why are you selling your business? The unacceptable answer is, so I can get away as quickly as possible and sip umbrella drinks on an island. The correct positioning of your exit is, we have built this business and are nearing retirement. In order to realize the future potential we will have to invest back into it at a time when we should be diversifying our assets. A strategic larger company could leverage our assets to achieve much greater market penetration than we could.
Another important theme is that you are in control. You understand your costs and your margins. You can identify the opportunities for growth that a better capitalized company could capture. You can articulate your strengths. You know your weaknesses and they are simply that you do not have enough resources, capital, or distribution to capitalize on all this potential you have created. You understand your market and your competition.
Buyers like to believe they are buying a business at a discount. You should try to present your weaknesses in such a way that the buyer will think, we can easily correct that. For example, an eight week order backlog could be considered a negative. A smart buyer will think, that is a high class problem. I wonder how many orders they lose because of the order delay? We could hire three more people, open two more work bays and cut that backlog down to ten days, immediately capturing 10% greater sales.
Another example is that the selling company is technology focused and really lacks sales and marketing expertise. The savvy buyer with a fully developed sales and marketing engine pictures a 20% increase in sales immediately. If the selling company already had these weaknesses corrected, the buyer would certainly have to reflect that in the purchase price. Because the weaknesses exist and the buyer has already identified how his company will correct them, he views it as buying potential at a discount.
A corporate visit should be a good two-way exchange of information. The seller should ask such things as: How long have you been in business? How many locations do you have? How many employees work for your company? This question is a good way to back into company revenues by applying industry metrics of revenue per employee. Sometimes private companies are hesitant to reveal sales figures. The seller wants to determine whether the buyer is big enough to make the acquisition.
What are your biggest challenges? Who are your biggest competitors? How do you see the market? Where are your best opportunities? Have you made any prior acquisitions? How do you feel about them? What are you really good at? What areas would you like to improve? How would you see integrating our company with yours?
There is some very important information that you are seeking from this line of questioning. First, their answers give you some hooks on which to hang the assets of your company in order to drive up your perceived value to the buyer. Find their opportunities and show how your company combined with theirs can help capture them. Show how your assets will give them an advantage over their competitors. Show how your combined assets can eliminate some of their problems or weaknesses.
You want to determine if there is a cultural and a philosophical fit. Is there trust? Do you feel comfortable? Do they "get it" in terms of recognizing your company's strategic value or are they just trying to buy your company at some rule of thumb financial multiple?
Often a company acquisition is comprised of cash at close and some form of deferred transaction value like an earn out. If your deal was structured like this, do you have confidence that you would reach your maximum in future payments? Have they been able to articulate their growth plan after they acquire you?
As you can see, the buyer visit should not be looked at as simply a show and tell corporate visit. It should be viewed as an opportunity for the seller to gather valuable information that will help him answer three questions:
1. Is it a fit?
2. How can my company help them grow and better compete?
3. Are they willing and able to pay me for that?
This article was originally posted on "The Exit Strategist Newsletter in Nov 2011. Used with permission.
About the Author:
Dave Kauppi is the editor of The Exit Strategist Newsletter, a Merger and Acquisition Advisor and Managing Partner of MidMarket Capital Advisors, LLC. MMCA is a private investment banking and business broker firm specializing in providing corporate finance and business intermediary services to entrepreneurs and middle market corporate clients in a variety of industries.
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