Business Exit Planning - Options, Value Enhancement, Transaction Management for Business

Informationen zum Autor 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. Klappentext 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. Zusammenfassung 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. 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 Governanc...

List of contents

Preface.
 
Acknowledgments.
 
Disclaimer.
 
Foreword.
 
Introduction: The Challenge of Exiting Your Business.
 
Three Overarching Themes.
 
A Few Words of Advice.
 
Part I. Business Exit Planning.
 
Chapter 1: An introduction to Business Exit Planning.
 
Ways to Exit Your Business.
 
What is Business Exit Planning?
 
Evidence on why Business Exit Planning is necessary?
 
Understand Your Motives.
 
The Special Case of Retirement.
 
Chapter 2: Begin with the Endgame in Sight.
 
Develop a Game Plan.
 
Value Systems and Visualizing the Endgame.
 
Chapter 3: Exit Options.
 
Intergenerational Transfer.
 
Initial Public Offering.
 
Merger.
 
Hiring Professional Management.
 
Management Buyout.
 
Refinancing.
 
Employee Share Ownership Plan.
 
Liquidation.
 
Choosing the Right Exit Option.
 
Chapter 4: Building Your Team to Assist Your Exit.
 
Reasons for Building a Team.
 
Composition and Role of Your Team.
 
Selecting Advisors: an Overview.
 
Your Advisors' Ethical Standards.
 
Chapter 5: Building a Business with Sustainable Value.
 
Look at Your Business from an Investor's Perspective.
 
Clarifying and Adjusting Corporate Strategy.
 
Corporate Governance, Systems and the One-Man Show.
 
Pre-Transaction Restructuring.
 
Identify and Manage Risks.
 
Operational Improvements to the Business.
 
Non-Arm's-Length Situations.
 
Chapter 6: Business Plan and Valuation.
 
Reasons for Making a Business Plan.
 
Should You Perform a Valuation of Your Business?
 
Recasting Financial Statements.
 
Building a Business Plan.
 
Introductory Comments on Valuation.
 
Types of Valuation.
 
Adjustments to Valuations.
 
Chapter 7: Tax Planning, Estate Planning and Insurance.
 
Tax Planning.
 
Estate planning.
 
Use of Insurance in Your Exit Strategy.
 
Chapter 8: Finalizing Your Exit Strategy.
 
What Type of Investors Should Be Targeted?
 
Should There Be a Listing or Asking Price?
 
Should There Be a Competitive Process?
 
Why Use a Competitive Process in Selling a Business?
 
What Are the Possible Drawbacks of a Competitive Process?
 
Timing Your Exit.
 
Communicating with Other Shareholders.
 
Your Contingency Plan.
 
Business Exit Planning Report.
 
Part II. Managing the Transaction.
 
Chapter 9: The Transaction Process.
 
Overview of a Competitive Process.
 
Confidentiality Through a Transaction Process.
 
Involving Company Staff in the Transaction Process and Communications with Investors.
 
Marketing Your Opportunity: From Long List to Short List.
 
The Information Memorandum (IM).
 
Nonbinding Offers.
 
Due Diligence.
 
Binding Offers.
 
Exclusivity.
 
Transaction Structuring.
 
Head of Agreement.
 
Sale and Purchase Agreement (SPA).
 
Closing the Transaction.
 
Noncompetitive Processes
 
Chapter 10: Negotiating a Transaction.
 
Get to Know Your Negotiating Partner.
 
Let Your Negotiating Partner Make the First Offer.
 
Concede in Small Increments.
 
After Asking a Crucial Question, Hold Your Tongue!
 
Every Term of the Deal also Depends on Every Other Term.
 
Be Prepared to Walk Away from the Deal.
 
Know Your Best Alternative.<

Product details

• Authors: Nemethy, Les Nemethy, Nemethy Les, Les Semethy
• Publisher: Wiley, John and Sons Ltd
• Languages: English
• Product format: Hardback
• Released: 04.03.2011
• EAN: 9780470905319
• ISBN: 978-0-470-90531-9
• No. of pages: 208
• Dimensions: 162 mm x 236 mm x 20 mm
• Series: Wiley Finance; Wiley Finance Editions; The Wiley Finance Series; Wiley Professional Advisory Se; Wiley Finance; Wiley Finance Editions
• Subjects: Education and learning > Teaching preparation > Vocational needs; Social sciences, law, business > Business > Business administration; Budgeting and financial management, Ownership and organization of enterprises, Finance & Investments, Finanz- u. Anlagewesen, Institutionelle Finanzplanung, Institutional & Corporate Finance