Vigilante
Legendary Contributor
FASTLANE INSIDER
EPIC CONTRIBUTOR
LEGACY MEMBER
Read Fastlane!
Read Unscripted!
What would happen to your family if you got hit by a bus on the way home from work tonight? If you died today, how would your survivors cope financially?
These are the questions we have been wrestling with over the past few weeks.
Step 1. Insurance. I have enough life insurance that my wife would be OK permanently. She wouldn't have to change much.
Step 2. Business transition.
My wife is not going to step in and run the business long term. While she needs to be able to do that short term to keep the wheels on the car, in essence what it would become on that day is a fire sale. Someone would be able to acquire the company for a low multiple, as her "job" at that point is to sell the company as quickly as possible for the maximum amount possible.
Enter a business broker from stage left.
However, the time for that structure and transition to be game planned out is NOW, not then for several reasons.
1. Your survivors might not know the details of the business
2. Your survivors might not know how to engage a business broker
3. Your survivors will be grieving (hopefully, right?)
4. You might today not be aware of achilles heels in the business strategy or structure
So, I am forging a relationship with a business broker NOW, to get that transitional strategy set up. It costs nothing.
Best case scenario is the business broker gets excited about your business, and finds you a buyer NOW (although that is not the goal). Keep in mind that he/she is motivated by event based commissions. They only get PAID when they sell your company. So, in the process of setting up the catastrophic exit plan, they might accelerate the process and find someone to take you out now.
Worst case scenario is you create a turn key "do this if I were to die" game plan for your survivors. There will be a structure in place, a pre-negotiated exit strategy, and an emergency button to press on that day that links directly to your exit plan advisor.
There's no reason NOT to do this. It can't hurt, and in my case I owe it to the people coming behind me to have someone knowledgable about how to take an unexpected loss and turn it into a methodical business exit.
I will let you know in this thread if I discover anything of value from building a relationship with a local business broker.
From an article in Inc.com, here are five questions to ask when selecting a business broker :
1. background and credentials
2. do they do their homework?
3. how do they promote your sale?
4. what is their buyer screening process?
5. how many listings do they currently have
and I would add :
6. what similar businesses have they sold previously
7. what is their core area of expertise (what sector)
8. get the contact information from the last three businesses they sold
9. Ask them what questions THEY would ask a business broker.
http://www.inc.com/bob-house/5-questions-to-ask-when-choosing-a-business-broker.html
These are the questions we have been wrestling with over the past few weeks.
Step 1. Insurance. I have enough life insurance that my wife would be OK permanently. She wouldn't have to change much.
Step 2. Business transition.
My wife is not going to step in and run the business long term. While she needs to be able to do that short term to keep the wheels on the car, in essence what it would become on that day is a fire sale. Someone would be able to acquire the company for a low multiple, as her "job" at that point is to sell the company as quickly as possible for the maximum amount possible.
Enter a business broker from stage left.
However, the time for that structure and transition to be game planned out is NOW, not then for several reasons.
1. Your survivors might not know the details of the business
2. Your survivors might not know how to engage a business broker
3. Your survivors will be grieving (hopefully, right?)
4. You might today not be aware of achilles heels in the business strategy or structure
So, I am forging a relationship with a business broker NOW, to get that transitional strategy set up. It costs nothing.
Best case scenario is the business broker gets excited about your business, and finds you a buyer NOW (although that is not the goal). Keep in mind that he/she is motivated by event based commissions. They only get PAID when they sell your company. So, in the process of setting up the catastrophic exit plan, they might accelerate the process and find someone to take you out now.
Worst case scenario is you create a turn key "do this if I were to die" game plan for your survivors. There will be a structure in place, a pre-negotiated exit strategy, and an emergency button to press on that day that links directly to your exit plan advisor.
There's no reason NOT to do this. It can't hurt, and in my case I owe it to the people coming behind me to have someone knowledgable about how to take an unexpected loss and turn it into a methodical business exit.
I will let you know in this thread if I discover anything of value from building a relationship with a local business broker.
From an article in Inc.com, here are five questions to ask when selecting a business broker :
1. background and credentials
2. do they do their homework?
3. how do they promote your sale?
4. what is their buyer screening process?
5. how many listings do they currently have
and I would add :
6. what similar businesses have they sold previously
7. what is their core area of expertise (what sector)
8. get the contact information from the last three businesses they sold
9. Ask them what questions THEY would ask a business broker.
http://www.inc.com/bob-house/5-questions-to-ask-when-choosing-a-business-broker.html
Dislike ads? Become a Fastlane member:
Subscribe today and surround yourself with winners and millionaire mentors, not those broke friends who only want to drink beer and play video games. :-)
Last edited:
Membership Required: Upgrade to Expose Nearly 1,000,000 Posts
Ready to Unleash the Millionaire Entrepreneur in You?
Become a member of the Fastlane Forum, the private community founded by best-selling author and multi-millionaire entrepreneur MJ DeMarco. Since 2007, MJ DeMarco has poured his heart and soul into the Fastlane Forum, helping entrepreneurs reclaim their time, win their financial freedom, and live their best life.
With more than 39,000 posts packed with insights, strategies, and advice, you’re not just a member—you’re stepping into MJ’s inner-circle, a place where you’ll never be left alone.
Become a member and gain immediate access to...
- Active Community: Ever join a community only to find it DEAD? Not at Fastlane! As you can see from our home page, life-changing content is posted dozens of times daily.
- Exclusive Insights: Direct access to MJ DeMarco’s daily contributions and wisdom.
- Powerful Networking Opportunities: Connect with a diverse group of successful entrepreneurs who can offer mentorship, collaboration, and opportunities.
- Proven Strategies: Learn from the best in the business, with actionable advice and strategies that can accelerate your success.
"You are the average of the five people you surround yourself with the most..."
Who are you surrounding yourself with? Surround yourself with millionaire success. Join Fastlane today!
Join Today
:voqjev:
