Parting Company

by Sherman, Andrew J.

• ISBN13: 9780938721666
• ISBN10: 0938721666
• Edition: 1st
• Format: Hardcover
• Copyright: 1999-09-01
• Publisher: Kiplinger Books

Summary

Presents the many steps of the succession-planning process, from valuing the company and choosing a strategy to selecting a successor and making smart financial choices. DLC: Sale of business enterprises--U.S.--Planning.

Author Biography

Andrew J. Sherman is an adjunct professor in the MBA program at the University of Maryland, and a frequent national and international lecturer. He has addressed Inc. magazine's annual conferences, the American Management Association's President's Council Meetings and the annual conference of the Young Entrepreneurs' Organization.

Table of Contents

Introduction	xi
Foreword	xv
SECTION ONE: An Overview of Succession Planning and Transition Management
Why You Need a Plan	1	(14)
The Basics of Succession Planning
The Differences Between Estate Planning and Succession Planning
The Succession-Planning Preparedness Quiz
Transition Management and Exit Strategies
What's Your Company Worth?	15	(14)
The Valuation Challenge for a Small or Closely Held Company
Use of a Professional Business Appraiser
Determining Strategic Value
Categories of Valuation Methods
Selecting a Method
The Importance of Insurance	29	(10)
Choosing the Right Product
Life Insurance and Taxes
How Much Do You Need?
Life Insurance for Your Spouse
Shopping for the Best Insurance Deal
SECTION TWO: Succession Planning and the Family Business
The Special Challenges of Dealing With Relatives	39	(10)
The Next Generation's Perspective
Setting the Stage for Seamless Succession
Developing The Family Business Continuity Plan	49	(18)
The Pre-Planning Process
The Basics of Business and Financial Planning
The Family Business Continuity Plan
SECTION THREE: Succession Planning Strategies
Keeping Your Business in the Family	67	(18)
Gifting
Trusts
Estate Freezes
Family Limited Partnerships
Dealing With Non-Family Co-Owners	85	(20)
Why Have a Co-Founder?
Understanding the Buy-Sell Agreement
Valuation and Pricing Issues
The IRS and the Buy-Sell Agreement
Selling to Your Employees	105	(16)
Selling to Your Staff: ESOPs as an Exit Strategy
Alternatives to the ESOP
Selling to a Third Party	121	(22)
Will I Be Able to Find a Buyer? When is the Right Time to Sell?
Getting Your House in Order: Preparing to Sell Your Business
Common Preparation Mistakes Sellers Make
The Letter of Intent
Preparing the Work Schedule
Structuring the Deal
Going Public	143	(12)
The Hidden Legal Costs
Selecting an Underwriter
The SEC's Small Business Initiatives
An Overview of the Registration Process
Ongoing Reporting and Disclosure Requirements
Creative Exit Strategies	155	(20)
Business Format Franchising
Joint Ventures
Licensing
Resource Directory	175	(22)
Appendix	197	(50)
Legal Audit Checklist
Sample Shareholders' Agreement
Sample Stock Option Plan
Sample Letter of Intent
Index	247