Building value in your home care business and setting goals for exit planning does not happen by accident. Partners 31 helps you develop your overall strategy as well as the specific tactics, the means by which you execute that strategy, necessary to achieve your goals. Let’s take the example of “Stuart,” a typical home care [...]
8 Ways to Exit Your Home Health Care Business
According to Paul Simon, there are fifty ways to leave a lover. We may not be as resourceful as Mr. Simon when it comes to saying goodbye, but we were able to come up with eight ways for owners to leave their home health care business. 1. Transfer to a family member 2. Sale to [...]
Time: Too Much or Too Little? Exit Planning for Home Care Agency Owners
Exit Planning? Oh, I’ll have plenty of time for that later! Exit Planning? I’m too busy to think about that now! Sound familiar? The problem is that active, successful business owners like you seldom slow down, and despite your best intentions, you often bite off more than you can chew. We can’t cram any more [...]
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 [...]
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 [...]
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) [...]
