Sale to Insiders Pat Ennis Sale to Insiders Pat Ennis

How Can My Employees Buy My Business?

In some cases, employees are capable of successfully operating a business, but lack the capital to acquire it. This may become the last resort for a seller, who takes a note rather than close the doors. This approach leaves the seller in the role of silent partner, hoping that the employees can maintain the business well enough to pay the debt.

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Pat Ennis Pat Ennis

The Hidden Gap in Business CONTINUITY Planning for Partner Disability

In business succession planning, preparing for an owner’s death is standard, with buy-sell agreements outlining the steps to take. However, a partner’s permanent disability—a more likely scenario—is often overlooked, leaving businesses exposed to financial, legal, and operational risks.

Without a clear plan, a disability can disrupt ownership, strain cash flow, or lead to disputes. Disability Buy-Out (DBO) insurance addresses this gap by funding a buy-sell agreement when an owner becomes permanently disabled.

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Sarah Goelitz Sarah Goelitz

Three Delegation Priorities for a Smooth and Profitable Exit

If you're a business owner planning to exit, one thing you must master to ensure a smooth transition and maximize your business’s value is delegation.

Too many management teams, and the businesses they run, are overly dependent on their owners. This type of dependency can deter potential buyers or significantly reduce valuation. 

Delegation isn’t just about offloading tasks; It’s about building a self-sustaining organization. Below are the top three areas to focus on as you prepare to exit.

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Keep The End In Mind

Often business owners are exhorted to build their business with "the end", or their eventual exit in mind.  This can be a good idea in that it lends toward building your business to have "transferable value", or value that someone else will want to buy and own when you're ready to leave.  Value apart from you the owner.

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External Sale, Exit Planning Pat Ennis External Sale, Exit Planning Pat Ennis

Deal Momentum, Deal Fatigue, and Pre-Sale Diligence

With the help of her Exit Planning Advisor, Betty has decided that a sale to a third-party buyer would best accomplish all of her goals (financial; values-based; legacy).

The process of quantifying her business and personal resources, with a financial gap analysis, has been helpful to Betty in determining her departure date in six years. She now knows the current fair market value of her business, and how much it will need to increase in value for the attainment of her financial objectives at sale in six years.

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Cash Flow Projection and a Successful Exit

A small business owner named Simon understands how the cash flow of the business drives his current income, and as well how it would eventually impact the valuation and sale price. However, Simon lacked awareness of elements of potential exit routes that demand cash flow.

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What are The Critical Elements in Training My Business Successor?

Training your Business Successor is crucial in ensuring a smooth transition of ownership and leadership. The following are critical elements to consider when preparing your Business Successor…

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The Emotional Challenges of Your Business Exit

There is much to do to realize a successful business exit. BUT!!! The most challenging aspects of an owner’s exit tend to be emotional. If not faced and handled well, they can result in owner procrastination, inaction, and regret. Following are common emotional hurdles that many business owners encounter.

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Exit Planning Pat Ennis Exit Planning Pat Ennis

Focus On Net Proceeds And Not Just Sale Price When Selling Your Business

John was excited as “today is the day!” Twenty-five years ago this month he had started his home remodeling business with a truck and a tool belt, and today at 3pm he was going to the deal table to sell his business to a much larger remodeling company. It would be a strategic purchase for the buyer who was willing to pay a premium with a goal of expansion in the region. With the check received today, John knew he could now do everything he and Kim had thought about doing for years — travel, more time with the family and for hobby’s and other interests they both enjoyed.

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Year-End Action: Sole Owners Should Review Business Continuity Instructions

The end of each year is an ideal time for a sole business owner to review and update their Business Continuity Instructions. An owner’s death or permanent incapacity often leads to the failure of a business, resulting in very difficult consequences for the family, employees, and customers. Written and distributed Business Continuity Instructions will provide those left behind with essential short-term and long-term instructions regarding the continuance of the business.

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Discovering Purpose Beyond Business: Lessons from My Exit

As a business owner, your company is more than just a livelihood—it becomes an extension of your identity, a vessel for your dreams, and often the center of your world. For nearly two decades, Solly’s Bagelry was my life. Co-founding and growing it into a cherished Vancouver institution brought immeasurable pride and purpose. But when I exited the business, I faced a challenge I hadn’t fully anticipated: finding my footing in a world where I was no longer "Joe from Solly’s."

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Create A Customer Concentration List

A significant reliance on one or a few customers will directly impact your business's sellability. A high level of customer concentration is risky for a potential buyer who will request a customer concentration list as part of their due diligence process. A wise approach to strategically building a business that is indeed sellable and to being prepared for a future sale transaction is to create and manage a customer list as part of your ongoing business management process.

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Exit Planning, External Sale Pat Ennis Exit Planning, External Sale Pat Ennis

An Intellectual Property Audit When Planning To Sell Your Business

An intellectual property (IP) audit is an important step before selling your business because it helps you identify, organize, protect, and maximize the value of your intangible assets. Intellectual property, such as trademarks, copyrights, patents, and trade secrets, can be a significant part of your business's overall value, and ensuring these assets are adequately managed is crucial to a successful sale.

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Cost Effective Measures for Improving Compliance with Employment Laws

Protecting the value of your business demands compliance with employment laws and prevention of employee claims and disputes.

At Lerch, Early & Brewer’s first annual Employment Law Day on September 17, 2024, employment attorney Marc Engel presented 15 cost-effective measures employers can take to improve compliance, which follow here….

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An Overlooked Risk in Management Buy-Outs

An often adopted exit strategy for a founder of a small business is to sell to a group of employees who have expressed a desire to be the future owners. Factors to be considered in assessing the viability of this strategy for the selling owner(s) include their personal financial goals, risk tolerance regarding payment of sale proceeds, and the buyers' capabilities to be successful business owners. Another risk factor most often neglected is whether the employees, who may be working well together, will succeed as business partners.

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Challenges Faced in Moving from Founder Mode to Manager Mode

Transitioning from founder mode to management team mode presents several challenges for small business owners as they plan for their eventual exit. Different leadership styles and approaches will be required as the business grows and moves from the start-up phase to a more mature stage. Here are some key challenges associated with this transition…

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"I'm Ready to Sell and Exit!"

"I'm ready to sell and exit!" — a small business owner can arrive at that point in their thinking and emotions quickly and for many good reasons. Common reasons include retirement, health issues, a desire to do something else (e.g., travel with a spouse), or simply being burned out and tired of owning a business.

So, the business owner reaches out to a Business Broker to sell their business, but they may face some harsh realities. Even though they are "ready to sell," the Business Broker informs them that their business isn't ready to be sold as is, at least not for the $$$$ they need to get out of it. They learn that even though they have realized an excellent standard of living by doing "what seemed good" along the way, they've created a "lifestyle business" rather than building a business that would be of value to a viable buyer.

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Expensive Sentences and your business Exit

“It’s too late to turn back now.”  “We’re too swamped for that now.”  “We can probably do that ourselves.”  “It’s crazy busy around here.”  These are just a few examples of “expensive sentences” mentioned by my friend Jack Quarles in his book, Expensive Sentences, Debunking the Common Myths that Derail Decisions and Sabotage Success.

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