Tag Archives: Exit Options

Internal Transfers: Legacy vs. Lucre

Lifestyle vs. Legacy Why would I refer to the results of an internal transfer as “lifestyle vs. lucre?” Lucre is a pejorative term. While it is technically just a synonym for money, most dictionaries draw the parallel to its use in … Continue reading

Posted in Entrepreneurship, Exit Options, Exit Planning, Exit Strategies, Leadership, Managing Employees, Selling a business, Strategy and Planning | Tagged , , , , , , , , , , , , , , , , | 2 Comments

2 Responses to Internal Transfers: Legacy vs. Lucre

  1. Edward Lette says:

    John,
    I have seen this happen in leveraged ESOP transactions which is so sad.

    • John F. Dini says:

      Yes Ed, That’s clearly why the Department of Labor is so much more likely to find issues in ESOPs where an employee is the trustee. It is often a warning sign of influence on valuation by the seller.

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Quality of Earnings Part 3: Cash Flow

In the past few weeks we’ve discussed how quality of earnings audits look at your income and expenses, and their impact on company value.  Since Revenue less Expenses equals Profit (P=R-E), you could be forgiven for thinking that we have picked … Continue reading

Posted in Building Value, Exit Planning, Exit Strategies, Selling a business, Strategy and Planning | Tagged , , , , , , , , , , , , , , , , , | 1 Comment

One Response to Quality of Earnings Part 3: Cash Flow

  1. Marsha Kelly says:

    Great detailed advice. Cash flow can make or break a small business. I know from my own experience and that of my clients. Run rates are a complex but necessary calculation.

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Quality of Earnings Part 2: Hidden Expenses

In my last post we discussed quality of earnings audits from a revenue perspective. Customer concentration, marginal lines of business and contracts are the three most common revenue traps. If you are comfortable with your company’s strength and stability as … Continue reading

Posted in Exit Options, Exit Planning, Exit Strategies, Selling a business, Strategy and Planning | Tagged , , , , , , , , , , , , , , , | Leave a comment

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Exit Planning: Telling Secrets

Planning your exit from a business is a process of telling secrets. For many owners, it is the most terrifying part of selling. A rancher in South Texas once said to me, “I’m going to tell you a secret, and you … Continue reading

Posted in Customer Relations, Entrepreneurship, Exit Options, Exit Planning, Leadership, Selling a business, Strategy and Planning | Tagged , , , , , , , , , , , , , , , , | Leave a comment

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What the Heck is Exit Planning?

The wave of Baby Boomer retirements is beginning. I’ve been writing and speaking about exit planning nationally for the last ten years, (you can download my free eBook on the subject here), but the inevitability of the demographics is gaining … Continue reading

Posted in Business Perspectives, Entrepreneurship, Exit Planning, Exit Strategies, Selling a business, Strategy and Planning | Tagged , , , , , , , , , , , , , | 1 Comment

One Response to What the Heck is Exit Planning?

  1. Cathy L. says:

    John,
    Thanks, I have a small chocolate wholesale/retail business. I started 6 years ago and after growing from 3 part time employees and lots of self employment expenses, remakes etc. I have been just me myself and I. I work almost 24/7 and multi-tasking is the name of my game. Now, I am thinking of relocating out of state and downsizing because I love what I do, but to consult with my accounting person about planning for a closing of this business and starting the same business in a different state that I will eventually retire in. I feel I have learned what to do and what not to do, so I have about 1-2years to schedule the move.
    Thanks, always enjoy your posts..

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