By answering the questions from the two previous articles, you are forming the foundation for your own Buy Sell agreement. You now have a choice of SIX different types of Buy Sell plans. This may seem like a daunting task. However,...
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Questions To Ask Yourself (Contd.)
By answering the questions in the last segment and this one, you are writing the foundation for your Business Succession Buy Sell Agreement. In the last article, we discussed you and your interest in your business. Now let's look at...
Questions To Ask Yourself (Part 1)
When writing your Business Succession, Buy Sell Agreement, using a set of questions helps you clarify what you'd like to happen to your business. These questions fall in three categories; You and Your Interest in the business, Your Co-owners/partners in the business and Not being...
Could This Happen To Your Business?
Creating a Business Succession Plan does take time and thoughtful reflection. So why all the fuss? It's worth all the effort because it's about the importance of stabilizing your business and maximizing its' value. It's all about transferring your life-long efforts in the...
An Illustration of Valuing Your Business
Before we start writing our Buy-Sell agreement, it would be worth presenting an illustration of a Business Valuation. 1. Let's assume your business BOOK VALUE is $1,000,000 ($1,500,000 assets minus $500,000 liabilities). 2. We'll use, for example, ACTUAL EARNINGS of $210,000. 3. ...
Valuing Your Business
Ready to start writing your succession plan? I am. So let's begin. The very first step is to set a fair market value for your business. By finding a fair and realistic value, you not only eliminate conflicts between partners and...