Table of contents

Table of contents

  • 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 Business14
  • What is Business Exit Planning?15
  • Evidence on Why Business Exit Planning is Necessary16
  • Understand Your Motives17
  • The Special Case of Retirement20
  • 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 Option39
  • 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 Strategy107
  • 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 Exit115
  • Communicating with Other Shareholders116
  • Your Contingency Plan117
  • Business Exit Planning Report 117
  • PART II
  • Managing the Transaction 119
  • CHAPTER 9
  • The Transaction Process 121
  • Overview of a Competitive Process122
  • Confidentiality through a Transaction Process124
  • Involving Company Staff in the Transaction Process and Communications with Investors129
  • Marketing Your Opportunity: From Long List to Short List131
  • The Information Memorandum132
  • Nonbinding Offers135
  • Due Diligence135
  • Binding Offers141
  • Exclusivity141
  • Transaction Structuring142
  • Head of Agreement145
  • Sale and Purchase Agreement146
  • Closing the Transaction151
  • Noncompetitive Processes151
  • CHAPTER 10
  • Negotiating a Transaction153
  • Get to Know Your Negotiating Partner154
  • Let Your Negotiating Partner Make the First Offer155
  • Concede in Small Increments155
  • After Asking a Crucial Question, Hold Your Tongue155
  • Every Term of the Deal Also Depends on Every Other Term156
  • Be Prepared to Walk Away from the Deal157
  • Know Your Best Alternative157
  • CHAPTER 11
  • Cross-border Transactions159
  • Why Don’t More People Market Their Companies Internationally? 160
  • The Challenges of Cross Cultural Negotiations162
  • Conclusion: The Only Question with Wealth Is, What Do You Do with It?165
  • Revisiting the Three Overarching Themes165
  • You Have Raised Your Cash. What Next?167
  • The Macroeconomic Effects of Succession Failure170
  • Notes173
  • Glossary177
  • References181
  • About the Author183
  • Index185
Hardcover: 189 pages
ISBN 978-963-12-6689-4 In five languages: English, Russian, Serbian, Polish, Czech
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