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Family Succession Planning Via Sale to Third Party When Exit Objectives Clash

Family Succession Planning Via Sale to Third Party When Exit Objectives Clash

Many business owners facing imminent exit have the enviable but difficult choice of either selling the business to an outside third party and achieving their financial objectives or, conversely, transferring the business to loyal, motivated,  key employees or family. This is nothing more, or less, than a clash of exit objectives. Take John Conover for […]

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Estate Planning for Home Care Business Owners and Their Families

Estate Planning for Home Care Business Owners and Their Families

To avoid unnecessary taxes when transferring your home care business and estate to your beneficiaries, it’s important to understand tax laws and how to use them to your advantage.  But before we jump into this discussion, we need to define “estate” first. For federal tax purposes, an estate is everything you control at the time […]

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First Things First: Prioritizing Your Objectives

  You’ve got to be very careful if you don’t know where you’re going, because you might not get there–Yogi Berra It’s not always easy to interpret Yogi Berra. But perhaps he is pointing out how important it is to know exactly where you and your business are headed. There will come a time when […]

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selling your homecare business

Selling to Insiders – How Much Can you Sell your Home Care Business for?

If you wish to transfer your business to an insider(e.g. employees, children, co-owners) and want to receive full value, then generally that value cannot exceed four times your true cash flow.  We define “true cash flow” as the pre-tax money distributed to owners via salary, bonuses, company distributions such as S-distributions, and all rental payments […]

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My Lawyer Told Me Not to Do It!

My Lawyer Told Me Not to Do It!

Many business owners have called one of their brokers or advisors to complain that their lawyer (or CPA or financial advisor or insurance professional) told them that they should not even think of transferring their business to their child and key employees, but they want to do it anyway. If you’ve made this type of […]

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Tainting the Marketplace; have a Proper Exit Plan in Place, Before you Embark Upon a Sale

Tainting the Marketplace; have a Proper Exit Plan in Place, Before you Embark Upon a Sale

So, you’ve decided to sell.  Enter the “low hanging fruit”–the single buyer.  You are not putting your best foot forward with this sale unless you have 1) prepared your company for sale, 2) a thorough, professional confidential offering memorandum, 3) exposed the company to all interested  buyers simultaneously, possibly creating a buying frenzy, and 4) […]

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