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A Life Well Managed

7 Reasons You Shouldn’t Sell Your Company

7 Reasons You Shouldn’t Sell Your Company

High net worth improves evaluation of life but not emotional well-being

I was at a business lunch the other day focused around a panel of Mergers and Acquisitions professionals.  The subject matter was great and there was a ton of knowledge up in front of the room:

  • Corporate Attorney
  • CPA
  • Business Broker
  • Banker
  • Recently exited business owner

But there was one BIG problem that stuck out to me.  read more…

What Skeletons Are You Hiding in Your Business?

What Skeletons Are You Hiding in Your Business?

Are you afraid that some information will jeopardize the sale of your company? 

There are tons of possible risks a buyer has when purchasing your company. Representations and warranties are your stamp of approval and given word that what you have disclosed is EVERYTHING you know.  However, it can be nerve-wracking to open up your doors and show someone all your skeletons, especially when this person or company is making an offer that could be the biggest transaction you ever do. That retirement plan is right in front of you. The beach, the holiday home… everything!

So to share something that might paint your company in a bad light may seem like the last thing you want to do, but if there is one take-away from this article it has to be the phrase “they’ll find out eventually”. Let’s get this clear from the outset. read more…

Is an earnout good for you? Don’t get screwed!

Is an earnout good for you? Don’t get screwed!

What is an earnout?

In plain English here is what an earnout is…

An earnout is a contingent part of the sale and purchase price of a business. The payment of the earnout is generally paid over a few years and linked to certain success factors that need to be met by the seller. Common criteria of an earnout are sales targets, customer retention, patent approvals, and maintained profit margins.

It’s quite common for an earnout to come in the final hour of the sale where the buyer basically takes a portion of the purchase price and read more…

Do you own a company or do you just have a job?

Do you own a company or do you just have a job?

“If your business depends on you, you don’t own a business—you have a job. And it’s the worst job in the world because you’re working for a lunatic!”

 Michael E. Gerber, The E-Myth Revisited

Ah now I see why I am so stressed every day! I am working for a nut case!

But seriously, are you stressed because there is not enough time in the day to get everything done? The harder you work, the more work there is to be done. Sound familiar? The most important question I have for you is… are you free from your company? read more…

Top 14 Mistakes When Exiting Your Company

Top 14 Mistakes When Exiting Your Company

Don’t leave a bunch of money on the table…

When it comes to buying companies, no one knows the process better than our friends at KLH Capital. As a private equity firm they are in the business of buying companies every day, so we thought we’d ask them for some advice on exit planning and common mistakes made during the business sale.

Ron W. Moore III, an associate at KLH, has come up with the top business-selling mistakes that he sees from clients. He knows exactly what can kill a deal in an instant, so listen up: read more…

How much money does your company REALLY make?

How much money does your company REALLY make?

What do you “run” through your business?

We all want to pay less tax, right? So it figures that we take every opportunity possible to run expenses through our business. But be warned: if you’re not careful, this can end up costing you way way more money than you ever saved in tax.

Recasting financial statements, the pros and cons… read more…

Do you have a business value gap?

Do you have a business value gap?

Is there a value gap in your business?

A lot of business owners find themselves in a goofy financial position in the years after they sell. It’s easy to assume that the money raised from a sale will provide security, but even a sale price into the millions may not be enough to sustain the same lifestyle as before. John H. Brown in his book Exit Planning: The Definitive Guide mentions how he discovered most owners actually spend MORE after they sell their business, not less.

read more…

What is exit planning? A strategy or a transaction?

What is exit planning? A strategy or a transaction?

What is exit planning?

The answer is not as obvious as you may think. Yes, exit planning does literally mean “planning your exit from a company or an investment”, but many business owners fail to grasp just how advanced and far-reaching their exit planning may need to be.

83% of Business Owners don’t have a plan or have any documentation about what that plan may be…

read more…

Exit Planning as a Chess Game: Do You Have the Right Pieces?

Exit Planning as a Chess Game: Do You Have the Right Pieces?

When you decide that the time is right to start working out how to sell your business, you have to wonder, “Who can help me build my exit plan?” You may consider trusted advisors, mentors, and internal or external stakeholders. You’ll end up wanting the smartest and most trustworthy person you know. Of course, how you end up landing on who that person is the real challenge.

Regardless of the professional designation of the person that is your closest ally through the exit plan and eventual sale of your company, understanding the motivations and underlying compensation plans of each player is the key to your success. read more…

The Usual Suspects: Who Buys a Business?

The Usual Suspects: Who Buys a Business?

Do you know to whom you are going to sell your business to and why? If you don’t, take a step back and to see how each potential buyer could impact your legacy, how you get paid, and what remains of your company after you are (hopefully) sipping coconuts on the beach. These are the five buyers you will most likely encounter.  read more…

Why Did You Start Your Business?

Why Did You Start Your Business?

Entrepreneurs venture out on their own for a variety of reasons. Some don’t want to have a boss anymore. Some are confident that they can do it on their own—and do it better. Others have an idea festering in their head and the only way to calm it is to jump in and pursue it. read more…

The Podcast Mission

The Podcast Mission

My goal is to bring to you, the listener, all the information and resources I wish I would have had before and during the sale of our business. Most often the sale of your business is the biggest financial transaction that will happen in your lifetime and you only get one shot at it!  For most owners, there are no practice rounds or trial runs and once the train is rolling it is hard, if not impossible, to stop. read more…

5 Key Factors to Successful Goal Based Financial Planning

5 Key Factors to Successful Goal Based Financial Planning

Prepared for Your Dream Retirement?

Many successful people view retirement in the not-so-distant future and find that they are mentally prepared, but their financial situation may not be. And many others with twenty or so years to go have not even begun to actively prepare. In any case, too many people reach retirement day only to find that there is not enough money to live in the style they had hoped. They have either been too busy to properly plan or have procrastinated and chosen to spend rather than save and invest properly. read more…

Your 401k’s Secret Weapon: Self Directed Brokerage Account

Your 401k’s Secret Weapon: Self Directed Brokerage Account

Finding this investment opportunity in your 401k could add 25% to your net worth in the long run.  

In case you haven’t checked, your 401k investments are most likely invested in high-cost investments that are bleeding your retirement savings slowly but surely. Through no fault of your own, you have been provided a selection of mutual funds that will ultimately cost you a fortune…literally. read more…

Where is my time machine?

Where is my time machine?

INTRODUCTION:

Have you ever caught yourself wishing you could go back in time and either save more money, invest differently, or avoid a devistating financial decision? I caught myself doing this very thing and found that there is in fact not a time machine yet… come on Musk 😉 read more…

4 Ways to Make Your Money Last a Lot Longer

4 Ways to Make Your Money Last a Lot Longer

How long will your savings last in retirement? 

If you were planning to take a long trip to the Boundary Waters, or someplace else that was far away from the general store, you would have all sorts of things to plan for. Most importantly, how would you provide food and water for yourself on a set budget with limited space to bring along supplies? read more…

Top 3 Hidden Investment Fees (Part 3 of 3)

Top 3 Hidden Investment Fees (Part 3 of 3)

Hidden Fees:

There are up to 13 layers of fees within any given mutual fund.  The financial services industry thrives on the consumer’s inability to determine how and how much they are paying for investments and services. Understanding the impact of fees requires that you can first locate these fees, then do the math to unravel the actual cost to them.

Identify and reduce these 3 sources of hidden fees to optimize your net worth:  read more…

Follow the Money… (Part 2 of 3)

Follow the Money… (Part 2 of 3)

Part 2 of our blog series on the Investment Fiduciary.

The blue pill or the red pill…. that is the question.  You wouldn’t leave it up to your advisor to pick your pill.  Why leave it up to them to decide “what’s in your best  interest?”

read more…