Category: Exit Planning

Decision Making, Exit Planning

Can Your Strategy Survive a Meeting with Reality?

Gregory Pearl

Everyone wants to avoid making major strategic mistakes. The problem is that the world is complex and most decision-making models and strategies are based on simple tools and processes. It is difficult to foresee and plan for all the factors that might impact a positive outcome. Therefore, you need to find the weak points in your strategies before the strategy is implemented. This can only be accomplished by applying a rigorous process to your strategic decision making and following it ruthlessly. Seeing where a strategy can go wrong ahead of time means you can take actions to prevent those bad…

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Buying & Selling a Company, Exit Planning

Selling A Troubled Company

Gregory Pearl

To start, let’s see if your Company actually is ‘troubled’. Of course, there many different types of ‘troubled’.  And some are in more difficulty than others. But you will know it when you see it.  Here are some of the characteristics to look out for: Declining earnings or negative earnings Negative book value Rapidly running out of cash Default on bank loans Inability to meet debt obligations Just knowing that a company is in trouble can decrease the time needed to sell the company by addressing the issues that a buyer will be concerned with. Sellers of healthy companies try…

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Business Valuation, Buying & Selling a Company, Exit Planning

Know These Six Biggie Mistakes When Selling Your Business

Gregory Pearl

I write a lot about the issues that can arise when selling a business.  You may get tired of reading about it … but the once in a lifetime sale of a privately held business is probably the most important transaction in a business owner’s life. So here is another post on the subject. Business owners often underestimate the effort needed for a good outcome in a transaction.  They also over estimate the value and salability of their companies. Consider these items: Overestimating the value of the company.  The listing price should be based on the fair market value of…

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Buying & Selling a Company, Exit Planning

Myths About Selling A Business

Gregory Pearl

The business owner will only sell their business once.  It is the most important transaction of their lives. The process is complex with legal, tax, valuation and personal planning issues all co-mingled. If you are a business owner looking to sell a business soon, here are some of the ‘myths’ we often hear that, if believed, can result in a less than optimum outcome. First Myth: I know what my business is worth, better than anyone else. Some owners want to be reimbursed for “sweat equity”.  Others think their business is worth what they need in retirement.  Yet others use…

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Alternative Investments, Buying & Selling a Company, Exit Planning

SBA Loans Help Finance Small Business, #2

Gregory Pearl

This is a continuation of the last post, which primarily focused on the SBA 7(a) program.  Here I’ll discuss other SBA lending programs. Because SBA loan guaranty requirements and practices can be change by the government at any time, it is important for applicants to obtain current and accurate information. This article is merely intended to help a business owner ( potential borrower) start thinking about these programs.  You must do your own investigation and research. The information here is not to considered legal or financial advice.  Just a prompt to start thinking about the topic. CDC/504 Loan Program The…

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Alternative Investments, Buying & Selling a Company, Exit Planning

SBA Loans Help Finance Small Business, #1

Gregory Pearl

In challenging times, small businesses can look for liquidity and financing in many places.  The various SBA loan programs are one of the better places to search. Because SBA loan guaranty requirements and practices can be change by the government at any time, it is important for applicants to obtain current and accurate information. This article is merely intended to help a business owner ( potential borrower) start thinking about these programs.  You must do your own investigation and research. The information here is not to considered legal or financial advice.  Just a prompt to start thinking about the topic.…

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Buying & Selling a Company, Exit Planning

Beware the Avalanche

Gregory Pearl

Small Business Owners have often seen it all.  If your company is older than ten years, add in the business cycle to the long list of things that compromise “all”. But here may be something unique that these owners have not seen yet, at least at the level of magnitude that seems to be on the horizon. Consider this in you are thinking of moving on from your business.  There may be an avalanche of business owners attempting to leave or exit their business in the coming years. 8,000 people turn 65 every day.  This has been going on since…

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