Business Exit Strategies

Family-Owned and Other Business

This book analyzes various business exit strategies for both family-owned businesses as well as other businesses, both in the United States and throughout the world. Approximately 80% to 90% of all businesses in the world are family-owned. The book discusses, among other things, 12 common mistakes in attempting to sell a business to third parties, methods of marketing the business, negotiation of key sale terms, negotiating employment and consulting agreements, avoiding traps in sale agreements, creating a professional advisory team, and alternatives to a sale to an unrelated third party, such as ESOPs, leverage recapitalizations, selling to other family members or key employees, and going public transactions.

Contents:

• Six Common Mistakes in Selling a Business to an Unrelated Third Party
• Six More Common Mistakes in Selling a Business
• Marketing the Business
• Letters of Intent and Due Diligence
• Negotiating Key Sale Terms
• Negotiating Employment and Consulting Agreements
• Avoiding Traps in the Agreement of Sale
• Creating a Professional Advisory Team
• Leveraged Recapitalization
• Selling to Other Family Members and/or Key Employees
• The ESOP Alternative
• Going Public in a Traditional IPO
• The Regulation A Alternative
• Appendix I: IRS Form 8594

Readership: Professors and students of business schools; entrepreneurs, business consultants, attorneys, accountants, advisors to start-up and middle-market companies, angel investors, private equity funds.
Key Features:

• Describes 12 common mistakes in selling a business which can either prevent the sale of the business or reduce the purchase price
• Provides 5 alternatives which should be explored prior to selling the business to an unrelated third party
• Discusses the negotiation of key sale terms and employment and consulting agreements which are both important in maximizing the after tax sale proceeds to the business owners