Thursday morning, October 20, Potomac, MD XPX – D.C. Metro will present Jack Moore, a fourth-generation family member and former board director of Benjamin Moore & Co., a publicly-owned manufacturer of industrial maintenance coatings. Mr. Moore will tell the story of how this fourth generation, family owned business founded in 1883 streamlined its operations and doubled its [...]
This panel discussion will help owners evaluate whether their company is already positioned to reap its intrinsic value when the unexpected event orunsolicited offer puts the company in play or whether the owner will be heard to say, “I wish I took the time to be prepared.”
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 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…)
While this may not be the type of book you would sit down to read for pleasure, I can certainly recommend that participants in the value creation and M&A space familiarize themselves with the concepts and practice within. This is a business course in itself. Very dense and rich in content.
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?
For those companies who are a candidate for transfer, now is the time for owners to start thinking about it and preparing for it. For those who successfully prepare, they too can sit back one day and reflect on their successful transfer.
The Exit Planning Exchange – Boston chapter will hold a 3-part breakfast series hosted by corporate partners in their offices entitled: Critical Issues for Business Success from Formation to Exit
Many owners are so involved in every aspect of their business that they are actually doing their business a disservice. The reason is that a business that is dependent upon the business owner to function is not worth as much to a buyer as a business that is built to stand on its own. And it’s too bad because it is absolutely possible to make the shift and create a business that will survive without the founder and have significant value.
Most business owners are so completely immersed in their business that it is simply all they know. Years of dedication and devotion have made some closer to their business than their families while others see their business as their identity. To have a successful exit, owners need to decide and plan for the next activity that will be as absorbing to them as their business has been.