Walk Away Wealthy: The Entrepreneur's Exit-Planning Playbook
Format: PDF / Kindle (mobi) / ePub
The essential guide to selling your business--and walking away with maximum wealth Nearly every entrepreneur dreams of one day selling their business for big bucks, but far too many aren't aware of exactly what it takes to do so. The sobering truth is that it's very easy for the entrepreneurs who don't know what they're doing to walk away from a sale without the financial freedom they hoped for. In fact, only about 20 percent of businesses for sale will successfully transfer to another owner!
In Walk Away Wealthy, Mark Tepper--a leading authority on wealth management and financial planning for entrepreneurs--shows you how to build a strong exit plan, an absolute requirement if you hope to get the full value from a sale. Tepper's twelve secrets debunk myths and deliver practical advice as he walks you through what most people don't know (or refuse to believe) about the process of planning their exit. And although it's best to start planning the exit as early as possible, the book also delivers advice for those who may have waited too long and feel lost in the face of a rapidly approaching sale.
Selling the business you worked so hard to build can be a confusing and intimidating proposition. Let Mark Tepper clear away the misconceptions, steer you clear of common mistakes, and help you walk away wealthy!
hints that someone is interested in buying your company, do a thorough presale financial audit now. That will make your business lower-risk and raise its value while reducing the chance of unpleasant surprises. Did You Know … ? If your business is structured as an LLC or a corporation, you’re not done once the closing papers are signed. You’ll have a list of things to do, including the following: Notify the IRS within thirty days, using Form 966, and close out your employer tax ID number. File
business who had already begun negotiations with a prospective buyer. The buyer was offering exactly the amount the owner was looking for: $5 million in cash, with an immediate closing. It looked like a great deal for my new client … but it wasn’t. The acquiring company wanted the transaction to be an asset sale; it didn’t want to buy the company’s stock. But since the seller had created his company as a C corporation, the sale contained a hidden trap: If he had proceeded with the deal as an
part of the buyer and because such entities are frequently neither S nor C corporations. But if your company is an S or a C corporation, making a stock sale a possibility, the question comes down to negotiation. In order to get your buyer to agree to make the transaction a stock sale rather than an asset sale, you may have to give on price or another issue (like earn-outs or deferred payments). This is why you should go over your options with your legal and accounting advisory team early in the
you’re younger, you take a greater risk that your plans to fund your children’s college education and use some of your sale proceeds to start another company will fall flat. That’s because entrepreneurs face an array of unique financial planning challenges: Higher risk and volatility. According to statistics published by Inc. in its December 2012/January 2013 issue, 67 percent of small business owners worry they won’t be able to put away enough money for retirement.16 Compare that to just 38
selling. Once they’ve spent a few years traveling, renovating the house, playing golf, and maybe training for a marathon, they find they don’t know what to do with themselves if they’re not trying to build a company from the ground up. This is especially true in the technology sector, where there’s a long-standing tradition of young moguls making their millions and bolting before age thirty-five. For example, Marc Andreessen, one of the creators of Netscape Navigator, the first widely popular