Is there a difference between entrepreneurs and business owners?
The terms entrepreneur and business owner are often used interchangeably. At a recent XPX-D.C. Metro breakfast, the two panelists were introduced as serial entrepreneurs and, it is true, each had founded four unique businesses. And although this was an Exit Planning Exchange event, these entrepreneurs did not talk much at all about how they transferred [...]
XPX – Washington D.C. Metro event – June 15
XPX friend Mario Ricciardelli will speak on “From dorm room to public company buyout: Lessons learned along the way to a successful exit”. Mario will enlighten the audience with his first-hand experiences around building his successful business, his ownership transfer through a sale, and the role of advisors throughout. He will also speak about the owners whose companies he acquired for the UK company that acquired his own firm six years ago. This is the inaugural event for the Washington D.C. Metro chapter of XPX!
XPX – Boston events – May 18, May 25
XPX – Boston will hold a breakfast meeting where former business owners Jeff Garr and Ken Bettenhauser answer the question, “When is an Exit not an Exit?”
Every Family’s Business by Tom Deans
a process…that keeps the family members in the business focused on the goal of selling the business at some point–selling the business at the highest price to the highest bidder, giving preference to cash and without prejudice to whether the buyer is family or an unrelated third party. The stock of the business must always be understood to be for sale. Sale of the stock takes primacy over any consideration of family employment. And family employment will not alter or distort the value assigned to the stock.
What if you knew?
“What would you do if you, as the business owner, had six months’ notice that you had to sell immediately (maybe because you were going to die?)?” What a great perspective! (aside from the dying part…)
Wednesday, February 16 at Babson College in Wellesley, MA, What Every Business Owner should know about Private Equity
Mark Jrolf is the Managing Partner of Heritage Partners, a Boston-based private equity firm that has a different approach to investing in family-owned businesses than most equity groups. Heritage provides capital for companies to diversify shareholder net worth, cash out partners, open up ownership to management, or to grow using outside capital. Heritage uniquely allows original ownership to retain control.
If not the IC-IQ quiz, here’s another quiz
The Intangible Capital quiz IC.IQ can be powerful and a great way to quickly get at what’s going on in a business. It tells you what the financials and all the “hard” data have ignored.
family business – a different approach
Part of what makes a family businesses unique could be that they simply have a different set of priorities. While many companies place ahigh value on growth and current profits, family businesses consider other values of high importance. For example, many family businesses consider the value of the family business to the fiber of the family. This business can serve as a source of employment for family members andit can serve as a means of keeping the family connected.
family business and a joke
An owner walks up to his son and says, “Son, I’ve been thinking, I’d like to give you half of this company. I’d like you to learn the business starting on the plant floor with production.” Son says,” Dad, that’s not really interesting to me.” Father says, “OK, son, work in the office with me and learn finance, sales and marketing.” Son replies, “That doesn’t sound very appealing.” The father, frustrated, then said, “Well, what do you suggest, son?” The son replies, “Why don’t you just buy out my half?”
A Different Approach
In anticipation of the turnaround, and corresponding increases in confidence and risk-taking (and it is starting to happen), baby boomer owners should know their exit options and be ready. They need to ask themselves these questions:
Is my company salable?
If so, what are the ownership transfer options?
Is my family OK with the decision to sell?
What will I do after I sell?
Have I built the value in my company so the sale proceeds will finance my lifestyle? If not, what can I do to improve its value?
Do I have the right advisors for the process?
Is my company ready for a thorough (and exhaustive) due diligence process?
