Details

Business Exit Planning

Options, Value Enhancement, and Transaction Management for Business Owners
Wiley Finance, Band 9 1. Aufl.

von: Les Nemethy
48,99 €
Verlag:	Wiley
Format:	PDF
Veröffentl.:	17.02.2011
ISBN/EAN:	9781118022955
Sprache:	englisch
Anzahl Seiten:	208

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Beschreibungen

Titelbeschreibung

The most viable exit strategies for owners of mid-sized companies For many business owners, cashing out of a business is a lifelong dream. For some, exiting a business can be a nightmare. Business Exit Planning: Options, Value Enhancement, and Transaction Management for Business Owners provides a comprehensive view of what every business owner needs to know to plan and execute a business exit. The book <ul> <li>Includes 30 relevant mini-case studies on business exit planning and transaction management, as well as a glossary of frequently used technical terms</li> <li>Details options for those owners who no longer want to be active in the business, as well as for those who want to remain invested</li> <li>Covers a wide range of topics related to business exit planning and transaction management, including IPO, MBO, refinancing, ESOPs, building an exit team, business plan and valuation, due diligence, and estate planning</li> </ul> Regardless of whether a business owner seeks an immediate exit or a staged exit over time, Business Exit Planning provides a comprehensive strategy and road map to define exit-related objectives.

Inhaltsverzeichnis

Preface xi Acknowledgments xv Disclaimer xvii Foreword xix Introduction: The Challenge of Exiting Your Business 1 Three Overarching Themes 6 A Few Words of Advice 9 Part I Business Exit Planning 11 Chapter 1 An introduction to Business Exit Planning 13 Ways to Exit Your Business 14 What is Business Exit Planning? 15 Evidence on Why Business Exit Planning is Necessary 16 Understand Your Motives 17 The Special Case of Retirement 20 Chapter 2 Begin with the Endgame in Sight 23 Develop a Game Plan 24 Value Systems and Visualizing the Endgame 25 Chapter 3 Exit Options 29 Intergenerational Transfer 29 Initial Public Offering 32 Merger 35 Hiring Professional Management 36 Management Buyout 37 Refinancing 38 Employee Stock Ownership Plan 39 Liquidation 39 Choosing the Right Exit Option 39 Chapter 4 Building Your Team to Assist Your Exit 43 Reasons for Building a Team 43 Composition and Role of Your Team 45 Selecting Advisors: An Overview 53 Your Advisors’ Ethical Standards 55 Chapter 5 Building a Business with Sustainable Value 57 Look at Your Business from an Investor’s Perspective 58 Clarifying and Adjusting Corporate Strategy 59 Corporate Governance, Systems, and the One-Man Show 61 Pre-Transaction Restructuring 68 Identify and Manage Risks 72 Operational Improvements to the Business 78 Non-Arm’s-Length Situations 82 Chapter 6 Business Plan and Valuation 85 Reasons for Making a Business Plan 85 Should You Perform a Valuation of Your Business? 87 Recasting Financial Statements 88 Building a Business Plan 90 Introductory Comments on Valuation 91 Types of Valuation 93 Adjustments to Valuations 96 Chapter 7 Tax Planning, Estate Planning, and Insurance 101 Tax Planning 101 Estate Planning 102 Use of Insurance in Your Exit Strategy 105 Chapter 8 Finalizing Your Exit Strategy 107 What Type of Investors Should Be Targeted? 108 Should There Be a Listing or Asking Price? 110 Should There Be a Competitive Process? 110 Why Use a Competitive Process in Selling a Business? 112 What are the Possible Drawbacks of a Competitive Process? 114 Timing Your Exit 115 Communicating with Other Shareholders 116 Your Contingency Plan 117 Business Exit Planning Report 117 Part II Managing the Transaction 119 Chapter 9 The Transaction Process 121 Overview of a Competitive Process 122 Confidentiality through a Transaction Process 124 Involving Company Staff in the Transaction Process and Communications with Investors 129 Marketing Your Opportunity: From Long List to Short List 131 The Information Memorandum 132 Nonbinding Offers 135 Due Diligence 135 Binding Offers 141 Exclusivity 141 Transaction Structuring 142 Head of Agreement 145 Sale and Purchase Agreement 146 Closing the Transaction 151 Noncompetitive Processes 151 Chapter 10 Negotiating a Transaction 153 Get to Know Your Negotiating Partner 154 Let Your Negotiating Partner Make the First Offer 155 Concede in Small Increments 155 After Asking a Crucial Question, Hold Your Tongue 155 Every Term of the Deal Also Depends on Every Other Term 156 Be Prepared to Walk Away from the Deal 157 Know Your Best Alternative 157 Chapter 11 Cross-border Transactions 159 Why Don’t More People Market Their Companies Internationally? 160 The Challenges of Cross Cultural Negotiations 162 Conclusion: The Only Question with Wealth is, What Do You Do with It? 165 Revisiting the Three Overarching Themes 165 You Have Raised Your Cash. What Next? 167 The Macroeconomic Effects of Succession Failure 170 Notes 173 Glossary 175 References 179 About the Author 181 Index 183

Autorenportrait

LES NEMETHY is the founder and CEO of Euro-Phoenix Financial Advisors Ltd, a leading corporate finance house in Central Europe and emerging markets specializing in helping owners of mid-sized enterprises sell their companies.??Over the past twenty-five years, he has been involved in the sale of hundreds of businesses in more than forty countries. He speaks and writes frequently on the topic and his syndicated column appears in more than ten publications around the world.

Back cover copy

The decision of whether to exit your business or not is never just a simple yes or no answer. Most business owners find the issue difficult to grapple with because it is not just one decision. Rather, in most cases, there are many interrelated decisions to be made. For example: How much money will you receive upon exit? What is the best timing for your exit, given the economic cycle of your country and industry? What kind of advisors will you need? And what will happen to your staff, clients, and business partners? Business Exit Planning explains the two major phases of leaving a business: Business Exit Planning and Transaction Management (that is, what a business owner needs to know in manag-ing the exit transaction). It will equip you, the business owner, with a full overview of what's involved in exiting your business. The book provides a wealth of illustrative case studies covering the wide range of options available to owners of mid-sized businesses, including intergenerational transfer, merger, liquidation, and more, as well as options for owners who seek an immediate exit and options for those who prefer a staged exit over time. Throughout the book, the author stresses three key themes: 1) A Business Exit should not be a spontaneous process, but the result of careful planning; 2) Business owners tend to underestimate what it takes to exit; and 3) There is often a mismatch in negotiating strength between business owners and professional investors. You may not be able to formulate a definitive opinion on any of those three subjects until you have actually closed at least one transaction. But by reading this book, you will be better prepared—and more successful—when you do start your exit process.