We believe that success in business is determined not by how well owners run a business, but by how well the business runs without them. Picture two identical companies that: Move time-sensitive freight. Serve customers across the...

Your key employees may be able to run the business as well as (or even better than) you can. But they may not possess the entrepreneurial temperament that accepts (and even thrives on) that part of the game known as "risk." Sonny...

Many business owners choose to transfer their businesses to employees when they’re ready to exit. This newsletter will present the two questions all owners need to ask their employees and three ways to help owners work toward a smooth...

For many business owners, business growth is the main area of focus. However, asset protection and retention are elements of business growth that don’t always get the same limelight as growth strategies. When it comes to planning for a...

In this issue we concentrate on Value Drivers related to financial measurement and management. These include: 1) Understanding and using existing financial information; 2) Managing and reducing company debt; 3) Implementing financial...

A business owner who is primarily concerned with transferring ownership with minimal tax consequences and who has sufficient personal financial resources so that receiving payment for the ownership interest being transferred is not...

Whether owners plan to sell their businesses to third parties or transfer them to insiders, they must create accurate models of future cash flow. Third party buyers will likely base their offers on some multiple of cash flow and...

In a recent article, we discussed how working with an Advisor Team can help you find answers to challenging business questions. In addition to your Advisor Team, you may find it valuable to build a group of business owners with whom...

In a strong Merger & Acquisition (M&A) market, buyers compare the relative strength of your company’s value drivers to those of your competitors. In a weak M&A market, however, buyers want companies that possess all of the...

Business owners who set up employee incentive plans generally do so to motivate their employees to work harder and smarter. Owners engaged in The Seven Step Exit Planning Process™, however, use employee incentive plans to accomplish a...

A big hurdle that business owners struggle to get over when creating an Exit Plan is, “I don’t have enough time to do all that.” On its surface, it’s an intuitive argument. Planning for a business exit is indeed a lot of work. It’s...

You have made up your mind that you will transfer ownership of your company to an insider — whether it’s your children or key employees. However, you may not be ready to turn over total control of the company just yet. In fact, you may...

Cash flow is an important component of every Exit Plan. Today's newsletter will explain how an accurate and professional estimate of future company cash flow can help you overcome common obstacles on the way to a successful business...

In an economy when many of us are tempted to bury our heads until the shooting is over, smart business owners are realizing that this may be the perfect time to acquire smaller, less adaptable, less capitalized or less well-managed...

Dreaming is often the foundation of creating your ideal reality. For many business owners, their success started with a simple dream: "What if I could do things my way?" "What if I didn't have to report to a boss?" "What if I could...

Stan Bartholomew, was a 50-year old business owner wanted to motivate his key employees while beginning to transfer them stock. After reviewing the pros and cons of an Incentive Stock Option Plan (ISO), Stan wanted an alternative. Stan...

Unless you can replace the financial strength, represented by your financial statement, your sudden death or incapacity may cause other "stakeholders" in your company to reconsider their relationships to your company. Problem for...

Unlike typical key employee compensation plans, the vesting schedule is also the payment schedule for this Stay Bonus Plan. A manager becomes vested in his or her share at the closing of the sale and receives one-third of the payment...

This issue describes how, using the Value Driver Analysis, graphic Assessment and Value Driver Report, you can help owners create a plan to bridge the gap between current and desired business value. The Value Driver Report: 1) Outlines...

Many business owners are missing a crucial link between their time as business owners and their time after owning their businesses. This missing link is called Business Continuity Instructions, and it could be the difference between...

Once an owner recognizes the value of the Stay Bonus or other incentive plan, he or she meets with the Advisory Team (attorney, CPA and financial advisor) to discuss the specific objectives he hopes to achieve. In this issue, we use...

All owners should be, at a minimum, protecting the existing value of their companies. This issue is devoted to explaining a few of the ways you can do exactly that by concentrating on specific items taken from a fiscal year agenda that...

There’s a mythology that business owners have all the answers all the time. Many business owners hold themselves up to this unachievable standard. Yet, nearly every business owner has moments when they say to themselves, “I have...

Key employees aren’t just key to the profitable operation of a business, they are also key to the owner’s successful departure. How then, does an owner keep key employees on board? This issue summarizes four important elements of a...

With your help, owners not only identify the areas of their businesses that need attention, but also choose strategies to address these shortcomings. In this case-study-based issue, we illustrate how asking owners a few questions can...

When you’re running a successful business, creating a plan for your eventual exit may be the last thing on your mind. “I have way too many responsibilities for that right now.” “I’ll start thinking about that when I’m closer to...

Too many incentive plans have been implemented by businesses, only to find that the participants in the plan felt no “incentive” to perform in any particular way. By getting back to the basics of key employee incentive planning and...

The third question that we hear from many owners: "I can live on a lot less income once I leave the business." When owners begin to create their exit plans, they need to answer three critical questions. When do you want to leave your...

The Agreement you draft will likely have extremely important future consequences because it will govern your ability to leave the business on your terms or to acquire a departing owner’s interest in an affordable manner. Thankfully,...

This issues covers the impact and the cascading affect that your death will have on employees and customers. Problem for Sole Owners. Your death will likely have the same impact on your company that the death of any one of your key...

This article uses a case study to show how business owners can damage their efforts at a third-party sale. Many business owners believe that they want to sell their businesses to a third party when they first start considering their...

Best of the Best companies systemize every internal operation so that they perform tasks in the same way—every time. Because owners can be so overwhelmed by the number of operations needing attention that they fail to address any, we...

What would happen to your business if you died or became disabled? Most, if not all, business owners have been approached by at least one of their advisors with the ever-popular question, "What would happen to your business if you died...

In this issue, we discuss the four areas where business owners who want to both survive in today's economic climate and emerge from it poised for growth (or sale) can focus their energies. In this issue, we discuss the four areas where...

Planning for a successful future both inside and outside of your business generally requires advisors who are specialists. These specialists play specific roles in bringing together what can be a large and complex plan that positions...

Buy-Sell Agreements typically work well in the event of a shareholder’s death but are dismal failures in the case of a lifetime transfer. A case study illustrates how two owners reached an impasse when their buy-sell (designed to...

This article explains why business owners will need a team of advisors to exit their businesses and offers suggestions for how to build that team. Exit Planning can be complex. Between setting your exit goals and transferring your...

Consider the possibility that you might just be the worst possible person to sell your company. Why? As the one most emotionally attached to your business, you will likely find it difficult (if not impossible) to negotiate with a...

This article uses a fictional but representative account to explain the importance of business planning for business owners before they die. Death is the one experience every business owner has in common. Few business owners like to...

Exit Planning is an on-going process. It begins with establishing your objectives and a valuation of your company and ends with your successful exit. Along the way, you and your Team of Advisors look at preserving the value of your...

This issue tackles three misconceptions many owners hold about sales to third parties: 1) Sales to third parties are less risky than transfers to insiders; 2) Buyers will appear when an owner is ready to sell; and 3) There’s no risk in...

This article uses a case study to show why it’s important for owners to plan for the unexpected. As a business owner, you’re likely the most important person in your business. You’re probably the breadwinner for your family. Your...

As Baby Boomers age and retire, an ever increasing number of businesses will become available for sale. Those that are prepared tend to fare better than those who fly by the seat of their pants when it comes time to sell. This article...

While bankers may be cautious by nature, they do need to make money. In fact, like all other business people, bankers are eager to continue profitable relationships. If the sale or transfer of your business is unlikely to disturb that...

A well-trained Advisor Team should make you money, not cost you money. This is not to suggest that your attorney or accountant, for example, is going to pay you money or that you aren’t going to end up paying for their services. But,...

Selling to a third party can save you time and money if the circumstances are right. Depending on what type of business you have, what your key employees are like, the current market, and your array of potential buyers, business owners...

When the interests of co-owners diverge, as they do when one owner wants to, or must, leave for any one of a variety of reasons, few buy-sell agreements are equipped to handle the four major issues that arise: 1) Agreement on business...

This article suggests four areas business owners could focus on to improve their business’ functions and the potential consequences of doing so. Success is rarely linear. As a business owner, it’s important to both acknowledge that...

Business owners deserve to get full value for their businesses when they decide to retire. But who determines what "full value" is, and how do you create it? Let's look at three strategies you can implement to pursue and build your...

This article presents three Value Drivers business owners can begin installing right now, along with what they need to properly install them as they build business value. An important aspect of growing a successful business Is creating...

To build business value, many owners start by installing three important Value Drivers. Building business value is a core reason you wake up and run your business every day. As your business grows in value, it can position you to find...

A recent Supreme Court case, Connelly v. United States, made an important ruling related to succession planning for closely held businesses. Today, we'll look at what the ruling says, how it could affect you, and steps you could take...

Many owners are familiar with estate plans, but they are often unaware of how their estate plans are an essential part of their Exit Plans. While the difference between the two plans may seem small, confusing the two could mean the...

This article will focus on the common estate planning concern that many owners have about preserving their assets from the claims of creditors and the litigation process. One of the most frequent questions that we frequently hear from...

While there isn’t one right answer, owners who see that Exit Planning and estate planning share the same goals begin to appreciate how they can leverage the time and money they spend on their Exit Plans into the design of their estate...

This case-study-based issue examines important considerations for any owner thinking about transferring ownership interest to a child active in the business. We examine the issues of Equal vs. Fair, the value of using experienced,...

You have a lot of choices when it comes to deciding a successor. Take time to consider every one of your options before making any big decisions. When planning for the future, you have a wealth of options related to who should continue...

The key to business growth often lies in the installation of Value Drivers. Value Drivers are elements of your business that can help you make it attractive to potential buyers as you approach your inevitable business exit and could...

This article explains the importance of reviewing strategic performance, tactical performance, and financial performance for business owners. As the year winds down, it’s important for business owners to raise their awareness of last...

This article explains how improving cash flow can have a multiplier effect on planning, creating more opportunities for growth and success. If cash is king, then cash flow is the kingmaker. Cash flow can have a multiplier effect in...

This article explains how planning is a common element that allows unique businesses to pursue and achieve success. Successful business owners may face a conundrum as they pursue success. “Though my competitors do something similar,...

When deciding to sell your business to a friendly competitor is it the right decision? In short, does the contemplated sale pass the "smell test?" Almost reluctantly, Casey Cummings decided to sell his business to a friendly competitor...

Many business owners facing imminent exit have the enviable but difficult choice of either selling the business to an outside third party and achieving instant financial security or, conversely, transferring the business to loyal...

Today’s newsletter provides a case study that illustrates what can happen to an owner’s business and family when he or she dies prior to a planned exit and has no contingency plans. This article outlines some simple steps sole owners...

If owners agree about how to appraise business value and set the terms of payment in advance of any transfer event, they can avoid the heated and often damaging negotiations that can occur when one owner leaves the company. In this...

As employees strive to make the company more valuable, they make their interest in the Phantom Stock Plan more valuable. Typically, phantom shares corresponding to shares of stock—but not representing actual ownership—are allocated to...

sing a sound and thoughtful incentive-based plan for key employees, you can achieve these key employee objectives, as well as your overall Exit Planning objectives. Prior to beginning the Stay Bonus Plan creation process, it is...

This article is for those who have ever given thought to selling their companies to a third party. In order for you to attract a buyer to your company, you must engage in the pre-sale due diligence process well before your anticipated...

The market has indicated that 20 percent of businesses are for sale to a third party, but only one out of four actually sells. For businesses above $10 million per year; however, the odds improve to 50 percent.1 In a retirement...

Choosing the most appropriate technique begins with establishing your overall ownership transition objectives — this is the real starting point for any kind of owner-based Exit Planning. In Exit Planning, it is critical for business...

For many successful business owners, the question of how to leave as much money as possible to children begs a more important question. Given the huge (and perhaps unexpected) financial success of the business, the real question is how...

Converting your business to a non-profit is a valid exit strategy. However, there are important things to consider if you choose this path. Here are a few things you should think about if you're considering converting your business to...

When business owners think about planning for a successful future, they sometimes believe that it will take years to reap what they sow. This can make it tempting to push such planning off to an indeterminate future date. However,...

A huge perk of running your own business is getting to do it your way. This can make planning for a successful future challenging for some business owners because they need to be comfortable with giving up control of certain aspects....

Achieving financial independence is the most important goal for business owners who want to exit their businesses successfully. The importance of achieving this goal is so great that it may be tempting to take legally nebulous routes...

Revenue and profitability are generally good indicators of your company's strength. However, when it comes to planning for a successful future, they are far from the only things that determine your company's strength. As you plan and...

Keeping key employees committed to your business is an essential strategy for building business value. It's also a crucial part of planning for a successful future, including your eventual business exit. There are many strategies you...

Key employees play important roles in business exits, but they can stall them, too. This article explains how. An important part of a successful ownership transfer, regardless of Exit Path, is the presence of key employees. Key...

This article discusses three things business owners can do to position themselves for a strategic third-party sale. As a business owner, you’re likely used to having as much control over how the business functions as possible. You’re...

It is important to take into account personal motives and objective conditions when you are trying to determine the best time to sell your business. For owners who toil long and hard to overcome the endless challenges that test the...

When choosing to transfer your ownership to a business-active child, there are a variety of options available to meet your unique business exit needs. Three of the most common business-active child transfer options include gifting...

Upon closer examination, leaving the business entirely to the business-active child (BAC) and making an equitable distribution of the balance of family assets to the inactive children (and perhaps to the BAC as well) is the fairest...

Has your lawyer, CPA, financial advisor or insurance professional told you that you should not even think of transferring your business to your child or key employees? Do you want to do it anyway? See how fictional owner, Dennis...

Many business owners support the lifestyles of their family, employees, and others they care about by means of running a successful business. Usually, those business owners don’t anticipate dying or becoming incapacitated before they...

If owners die or become disabled prior to their planned exits, their companies face many of the same problems they would have had a key employee died. In this issue we outline the problems that can confront both sole-owned and co-owned...

Many business owners support the lifestyles of their family, employees, and others they care about by means of running a successful business. Usually, those business owners don’t anticipate dying or becoming incapacitated before they...

Phantom Stock Plans allow employees to reap the financial rewards of ownership without the attendant risk while at the same time carries several significant tax advantages. Rather than awarding stock, a Phantom Stock Plan gives the...

What owners and family each consider fair can cause problems. This article addresses this concept. If you’re like many business owners, your business plays a large role in supporting your family’s lifestyle. As you plan for your...

Having a valuable business could position you to do the things you want in both your personal and professional life, from taking advantage of the perks of owning a successful business now to planning for your eventual retirement and...

Controlling the controllable and reducing the effects of the uncontrollable are prudent decisions for successful business owners. But how can you know which is which, and where can you go when confronted with a situation you've never...

Imagine this. You wake up to an unexpected email in your inbox. Someone wants to buy your business. No pitch deck. No broker. Just a direct message: "I’m interested in acquiring your company. Are you open to talking?" Most business...

As business owners approach the inevitable crossroads of exiting their companies, they are faced with a multitude of options. One compelling strategy that has gained popularity in recent years is the Employee Stock Ownership Plan...

Cash Flow is complex, and it’s vital for business owners to understand it. The complexity comes from the fact that it is fluid, flows in different directions, speeds, and can go off-course relatively easily. Misunderstanding cash flow...

In the dynamic landscape of business, the art of Exit Planning emerges as a pivotal skill for entrepreneurs and advisors alike. At the heart of this strategic endeavor lies the power of goal setting, a tool that transcends mere...

Burnout has been one of the biggest buzzwords in recent years. In fact, in 2019 the World Health Organization (WHO) officially recognized burnout as an official syndrome due to chronic workplace stress that has not been successfully...

When is the right time to start planning? This article outlines three steps owners should consider taking as soon as possible. Many business owners believe they have plenty of time to create a successful plan for the future of their...

This article provides owners with three steps they can take to begin planning for future success. Do not act as if you had ten thousand years to throw away. Death stands at your elbow. Be good for something while you live and it is in...

The journey to parting with one’s business can be a daunting process. It can take time to develop and evolve alongside with your goals and objectives. You can’t get anywhere if you don’t know where you’re going. It’s also obvious that...

Unless you're the owner of a multi-billion- or trillion-dollar corporation, your business is likely subject to the whims of a changing marketplace. External changes in the market can sometimes force you to deal with problems you...

A case study illustrates the clash between an owner’s desire to sell to employees and the employees’ lack of cash. This issue lists the three goals of any good transfer-to-employees plan, an explanation of the two-stage plan design and...

Choosing a successor to run your business is one of the most challenging decisions that you'll make as a business owner. It can be especially challenging if the successor you choose isn't the one everyone expects, which could lead to...

This article will provide additional insight into how to use your business to fuel the growth of your estate outside of your business interests and how to provide for your family’s income needs. There are six critical questions that...

It is worth repeating that the same analysis given to lifetime transfers (benefiting you) needs to be given to a transfer occurring at your death (benefiting your family). Since both lifetime Exit Planning and Exit Planning at death...

Economic downturns give all business owners, quite literally, pause: pause in growth, pause in hiring, pause to reconsider exactly where our companies are heading — or need to head — if we are to meet our owner-based goals. Economic...

For many business owners, a sale to a third party is their assumed Exit Path. Some business owners even start their businesses with the goal of finding a larger, more deeply pocketed buyer; selling the business; and retiring early. The...

This article outlines three tools business owners can use to balance their personal goals with their families’ wants and needs in an ownership transfer to family members. If you’re considering transferring your business ownership to...

This article presents some negative consequences that business owners can face if they try to transfer their ownership to children without proper planning. After building a successful business, many business owners decide that they...

Transferable business value is determined not by how well you run the business, but by how well the business runs without you. Transferable value in a closely held business is most simply what that business is worth to someone else...

As owners approach their business exits, two issues that can easily be overlooked are their premature (unexpected) death and permanent incapacitation. These issues are unsettling because 1) there is no comfort in contemplating...

If you are like most owners, you are critical to the success of your business. Without you, there is no business. We want to change that. Instead of being the hub of your business, we’d like to help you become an Incidental Owner....

Contemplating one’s demise is never pleasant and can be challenging. And yet it’s critical that sole owners tackle the topic for the good of their families and their businesses. Consider the outcome for fictional Harry Withers, the...

We’d guess that there are very few days in which the thought of growing the value of your business doesn’t cross your mind. Much of our work as Owner-Based Planning Advisors consists of helping owners do exactly that. One element of...

"My key employee really is vital to my company’s success, but I can’t (or won’t) ask him/her to sign a covenant not to compete. Besides, I’ve heard that covenants not to compete aren’t enforceable." We often hear owners of closely held...

Very few owners would answer no to the question, “Do you want the value of your business to grow?” Yet many owners find that, at some point, growth plateaus. Stagnation is frustrating because all the things that successfully grew a...

Phased planning can help a great variation of business owners in unique situations. When we start any important project, it is common to choose to plan in phases. Sometimes we choose to plan in phases because there is a certain aspect...

We all have been too busy to plan for the future. But when you are able to break up the planning into small pieces, suddenly planning for the future doesn't seem so intimidating. Use phased planning to help motivate your business owner...

Exiting your business can be a stressful and emotional experience for you and your loved ones. Don’t add to the stress and leave your spouse in the dark when Exit Planning as they play a huge role in you Exit Planning strategy....

One of the biggest sources of friction in planning for a successful future is time. Successful business owners like you aren’t sitting around, twiddling your thumbs, and wondering what to do with all this extra time you have. How can...

This newsletter discusses ways business owners can grow their businesses when their management teams can’t produce desired growth. Building business value is a common goal among business owners. Many successful small business owners...

Having a valuable business could position you to do the things you want in both your personal and professional life, from taking advantage of the perks of owning a successful business now to planning for your eventual retirement and...

In this article we will focus on the best way to deal with the emotional and behavioral issues associated with family business transfers. Statistics widely quoted by estate planning writers indicate that "only" one-third of all...

Cash flow can have a surprisingly significant effect on various parts of your company. Learn how to not fall short because of unhealthy cash flow. While there are many uncertainties when planning for the future, one factor that is...

After you have determined that you need to bring in a Family Business Consultant to help deal with the emotional and behavior issues associated with family business transfers, the next step is to find one that matches your Exit...

Parents normally want to give equal amounts of their estates to their surviving children, regardless of how active each child is in the business. The problem with including this provision in a will is that each child may get not only...

Occasionally, we run into what I call “Battling Assets.” That is when an owner is drawing a comfortable income from the business, but it is arranged in a way that denigrates the business value, the value of the asset, or both. Here are...

Our goal here is to discuss events that are not funded by insurance; for example, the bankruptcy or divorce of one of the shareholders. Permanent disability, is usually funded by insurance. In this way, it is very similar to the death...

"All those years of work are thrown away. To ease your mind is that all you can say? But what about that grandson on your knee? Them railroad songs, Tom would sing to me." –Robert PlantMany business owners dedicate decades to making...

his article uses a fictional but representative account to raise awareness among business owners about the challenges of approaching retirement. Many successful business owners (and their families) look forward to retirement. After...

Writing things down is an important part of achieving your goals, both while you're running your business and after you leave it. However, many business owners feel overwhelmed by the idea of writing down their post-exit goals and...

The third component of life after the sale is Purpose – “Having as one’s intention or objective.” Many exit planning advisors discuss the three legs of the exit planning stool – business readiness, financial readiness, and personal...

A Stock Appreciation Rights Plan meets both the needs of the key employee and of the owner, because it gives employees something that looks like stock, grows in value like stock, and can be turned in for cash just like stock, but is...

So, how do you ensure that your key employees will remain at their posts, even as you prepare to leave yours? One short-term incentive plan that can be set up to meet your employee incentive Exit Plan objectives is the Lifetime Stay...

Owners of family businesses sometimes overestimate their family members’ ability to preserve the family relationships over time. When an owner does not think through both the positive and the negative potential consequences of a family...

In this issue, we take a look at limiting ownership to one child. It is easy to recognize those business owners who have dedicated their lives to ensuring a successful transfer of a family-run business — they have but one child. There...

Are you avoiding technology costs? A few months ago, a subscriber to our planning tools called with a tech support question. “Your software doesn’t work,” he said. After some investigation, we identified the problem. He was using a...

Exit planning is the buzzword for those who consult to Baby Boomer business owners. Business brokers, wealth managers and other professionals are adding “exit planning” to their marketing messages. It’s a logical reaction when over 5...

When owners decide to sell their companies what makes them choose one suitor—or buyer—over all the others? What is it that sets winning buyers apart from all the wannabes? When owners decide to sell their companies what makes them...

Consider the possibility that you might just be the worst possible person to sell your company. Why? As the one most emotionally attached to your business, you will likely find it difficult (if not impossible) to negotiate with a...

So, you’ve decided to become a seller. You have determined that even though market conditions are not absolutely ideal, your company is saleable. So, you’ve decided to become a seller. You have determined that even though market...

Why should you worry about creating value when you’ve got more pressing fires to fight? Well, if you hope to sell or transfer your company when tough times end, your company must be valuable enough to attract a buyer and to finance a...

In the area of buy-sell agreements, we often talk about what those agreements are, what transfer events they cover, why these agreements should be updated as shareholders and companies grow and change, and why the choices you’ve made...

We have all heard the old proverb that it’s dangerous to put all of your eggs in one basket." But does the proverb apply in the world of business ownership? Specifically, is it a valid warning or just a worn-out cliché? It seems to...

Building value is a great use of an owner’s time, but it isn’t Exit Planning. Value building as part of Exit Planning covers four important issues: current value, value needed at owner’s exit, developing tactics to close the gap...

Building value is a great use of an owner’s time, but it isn’t Exit Planning. Value building as part of Exit Planning covers four important issues: current value, value needed at owner’s exit, developing tactics to close the gap...

Owners can harm their planning efforts when they create two distinct problems for themselves. This article presents what those problems are and shows the consequences of not addressing them. Planning for your business’ future success...

Using a case study, this article shows how transferring ownership to employees can position owners to achieve many different goals. For many small-to-mid-market business owners, there are few things more important than maintaining...

Economic crisis and business disruption make it necessary to revisit the existing plan for the future of a business, and sometimes it becomes necessary to return to the beginning of the planning process and retrace our steps. But how...

This article discusses why Exit Planning is still important for owners who love to work. Many business owners love the companies they’ve founded, whether it’s because of the work they do, the changes they effect, the money their...

Writing things down is an important part of achieving your goals, both while you're running your business and after you leave it. However, many business owners feel overwhelmed by the idea of writing down their post-exit goals and...

This article explains aspects of key-employee incentive planning through a fictional case study. When thinking about business planning, one aspect you may be tempted to overlook is the contributions of your key employees. Key employees...

Like any other bonus, owners can base a Stock Bonus on a performance standard. (If business makes $X or does "X," employee gets a predetermined amount of ownership.) Alternatively, they can simply assign whatever bonus amounts they...

Investment banker Kevin Short describes how Steps 1, 2, and 3 of The Seven Step Exit Planning Process™ can separate sale transactions that close from those that completely derail. Short uses examples from his practice to show how exit...

When co-owners are united in striving toward common business goals such as growing revenue, building business value and increasing cash flow, the business dynamics can be wonderfully positive and strong. Contrast that bright picture...

So, how do you ensure that your key employees will remain at their posts, even as you prepare to leave yours? One short-term incentive plan that can be set up to meet your employee incentive Exit Plan objectives is the Lifetime Stay...

This article explains how key-employee motivation can determine the incentive plan business owners offer them. Business planning often revolves around the idea of “What’s in it for me?” Business owners usually want the kinds of...

Too often, owners discover that the compensation plans they've put in place for key employees are sadly inadequate only when those key employees leave their companies for greener pastures. The departure of one or more of these key...

It is the job of the experienced Exit Planning advisor to ask you the right questions so that you decide where you are going, who is going to help you get there and the route you are going to take. Your answers help your advisors plan...

Rewarding employees for performance and wanting to stay competitive in the marketplace are good reasons to install bonus incentive plans, but the best reason for these plans is: to motivate employees to reach an owner’s goals. Details...

Rewarding employees for performance and wanting to stay competitive in the marketplace are good reasons to install bonus incentive plans, but the best reason for these plans is: to motivate employees to reach an owner’s goals. Details...

It is the job of the experienced Exit Planning advisor to ask you the right questions so that you decide where you are going, who is going to help you get there and the route you are going to take. Your answers help your advisors plan...

A case study illustrates how an owner’s failure to ask and answer six key questions can destroy his or her family and business. Use this article to help owners understand the importance of coordinating their estate plans with their...

Be sure your company still has worth after you depart from the business by building transferable value. One of the most important elements of a successful business transition is transferable value. No matter what an owner sees for the...

Business owners need to identify the gap in value before they begin an Exit Plan. Increasing business value is the first step in closing that gap. Business owners have a lot of information at their fingertips. There are calculators and...

Even business owners who intend to stay in their business indefinitely need a plan in place to make that choice a success. We hear it all the time. Do any of these sound familiar? “I’m never leaving my business. I love what I do.” “I...

Know the tough decisions you may have to make during a recession can either make or break your business. Learn about specific action items that may help turn a negative situation into positive future growth for your business. In times...

In other issues of this newsletter, we have suggested that cash flow is “king” for a closely held business. But with low interest rates, abundant private equity capital and an improving economy, some may question whether our emphasis...

Explore 3 different ways business owners can approach planning and the implications of each. Planning for a successful future isn’t homogenous. It simply can’t be. The needs that you and your business have are likely to be different...

What are some ways owners can work to reduce business risk and improve outcomes? As a business owner, you make decisions constantly that you believe will reduce your risk and/or improve your business outcomes. There are countless ways...

7 traits successful people have, regardless of field or industry. Success can be a nebulous concept. What one business owner considers success might only be a step on the path to success for you. What are some of the guidelines that...

Understand the importance of keeping your key employees around after your departure. Most business owners are considering several options for the future of the ownership of their businesses. If you’re keeping your options open, that is...

Understand the importance of keeping your key employees around after your departure. Most business owners are considering several options for the future of the ownership of their businesses. If you’re keeping your options open, that is...

3 things owners can do to protect themselves and their families. Many business owners support their families through their businesses. If something were to happen to you, such as a sudden death or permanent incapacitation, it may...

This newsletter discusses ways business owners can grow their businesses when their management teams can’t produce desired growth. Building business value is a common goal among business owners. Many successful small business owners...

This article discusses how writing a plan down can make it easier to implement compared to improvising a plan. For nearly 5,500 years, human beings have written things down. From Hammurabi’s Code and the U.S. Constitution to your...

This article discusses how writing a plan down can make it easier to implement compared to improvising a plan. For nearly 5,500 years, human beings have written things down. From Hammurabi’s Code and the U.S. Constitution to your...

This article describes a process of identifying a business’ most valuable assets and protecting them for the sake of future success. As your successful business grows larger and matures, you should always be on the lookout for forces...

This article offers a five-step strategy business owners and their advisors can use to address Deal Killers, which can prevent a successful business sale if left unaddressed. When you set your business up for future success, you can...

This article provides an overview of how Exit Planning can address unexpected changes in a business owner’s plans for their business exit. As a business owner, you manage all sorts of complexity in your work. Goals, expectations, and...

This article describes the concept of legacy planning and provides questions business owners may want to ask themselves about the future of their wealth and business. When you die, how much money do you want to have to pay lawyers to...

What are some ways owners can work to reduce business risk and improve outcomes? As a business owner, you make decisions constantly that you believe will reduce your risk and/or improve your business outcomes. There are countless ways...

Selling your business on your terms doesn’t just happen overnight. It can sometimes take years of enhance your value drivers to ensure you are selling your business on your timeline. When you started your business, it was probably...

This article uses a fictional but representative story to explain how personal planning and business planning often overlap, along with suggestions for how to combine those plans successfully. It’s not uncommon to hear the phrase...

It is not particularly easy to transfer business ownership to key employees, children or other quasi-paupers without taking a great deal of risk. Do you want to reduce your exposure to risk as you depart? How much risk do you want your...

The damage to an owner’s exit plan and to the business of losing key people is magnified when employees leave and take other employees customers, trade secrets, and long-term vendor relationships. "My key employee really is key to my...

For business owners, paying non-essential professional fees is nearly as unpalatable as paying unnecessary taxes. If you are convinced that you don’t require the services of a certified valuation analyst to value your company, this...

Don't believe the myth that someone will tell me when it is time to start planning for your business transition. It is dangerous to wait for others to take the first step. You need to take the initiative, but how? Myth: "My CPA will...

Many business owners have a fuzzy idea of what life looks like after they're done working. But fewer business owners have a plan for how they’ll reach the life they want after they're done working. Running a successful business is time...

Private equity leverage can dramatically increase ROI, but it can also be a trap. In our previous article, we discussed the general structure of Private Equity, how it works, and the types of Private Equity Groups (PEGs). They have...

We began this series by saying that Private Equity reputation is as the Great Satan to some, and a savior to others, depending on the personal experience of the speakers. In fact, both reputations are well deserved, but neither can be...

Cash flow normalization is done with the intention of identifying Earnings Before Interest Taxes Depreciation and Amortization (EBITDA) or Seller’s Discretionary Earnings (SDE). These differing measures are not interchangeable, but are...

Most owners look to the value of their businesses as the chief source of liquidity for their post-exit lives. Therefore, most owners need to know the value of their companies now so they can be smart about creating greater business...

Building trust with your clients often requires a combination of consistency and newness. Threading the needle between becoming commoditized by being stagnant and alienating your customers by moving too far away from your core...

Building trust with your clients often requires a combination of consistency and newness. Threading the needle between becoming commoditized by being stagnant and alienating your customers by moving too far away from your core...

Your business is likely a large part of your financial success. Even after you eventually leave your business, you may still rely on your business to achieve financial security. This often means that you need to prepare for the next...

If you are considering or in the process of transferring to key employees, we suggest that you pay particular attention to the seven obstacles that can derail this process. If you are considering or in the process of transferring to...

Banks strive to minimize their risk and one way to do so is for buyers to take advantage of the Small Business Administration's (SBA’s) loan guaranty programs that can protect the lender bank against loss in case of default. Whether...

The third element that you must put in place to kick off your Exit Plan is to pick a Target Successor. Compared to the list of possible departure dates or the variety of needs at retirement, the list of possible successors is quite...

What could be easier than transferring your family business to its natural successor, your heirs apparent, your offspring? In the checkered, but always interesting, history of nepotism (as it relates to business transfer) we find that...

There is a "recipe" for creating a successful intergenerational transfer. It isn’t the only recipe that works, but because it depends on six carefully chosen ingredients, its chances for successful completion are greater than others....

Today we are going to talk about valuation in business continuity arrangements. Business continuity arrangements must cover both lifetime and death events. Your challenge (and that of your advisors) is to establish a valuation that is...

Planning for a successful future often takes years. And even the most forward-thinking plans can run into unexpected obstacles that can add more time to achieving your goals—perhaps more time than you're comfortable with. How can you...

This article focuses on the importance of business continuity instructions and some of the more important items these instructions should address. The strongest businesses often have written plans for how to address unexpected events...

This article explains why it’s important for business owners to begin planning now for a future without the business rather than later. It also provides starting points for such planning. All successful business owners must eventually...

Selling your business on your terms doesn’t just happen overnight. It can sometimes take years of enhance your value drivers to ensure you are selling your business on your timeline. When you started your business, it was probably...

Starting the planning process can be a daunting task. However, when each step of the process is laid out in front of you the task at hand doesn’t seem so overwhelming. Taking on any large project can be manageable when you have a...

Executive summary: In a closely watched decision, the U.S. Federal Reserve opted for a larger 50-bps reduction in interest rates today, rather than a more traditional 25-bps rate cut. Today’s rate cut marks a clear shift in the Fed’s...

Poorly executed estate plans can leave your family in shambles if you unexpectedly die. It can be difficult to consider what will happen to your business and your family if you die unexpectedly. Without proper planning, you could be...

This article provides three ways for business owners to more successfully plan for retirement, along with the consequences of taking these actions. There’s a big difference between not wanting to retire and not being able to retire....

This article provides business owners five steps they can take to plan for a successful future and shows that they don’t need to have a complete plan from the start. Planning for a successful business future is like being confronted by...

This article provides three strategies for business owners that can help them become more recession resistant while planning for a successful business future. The last two-and-a-half years have been tumultuous, and owners of small to...

This article presents three Value Drivers business owners can begin installing right now, along with what they need to properly install them as they build business value. An important aspect of growing a successful business Is creating...

This article presents the differences between the costs of planning and not planning for a successful business future. Running a successful business requires incredible amounts of effort, ingenuity, and capital. And when it comes to...

Running a successful business that generates wealth is incredibly satisfying. If there's a downside to it, it's that much of that wealth is generally illiquid, unless you sell the business or invest outside of your business. Today,...

This article offers three things business owners should consider if they intend to pass their businesses to their children or insiders. Successful business owners do a lot of things well, and they make it look easy. This is often a...

This article shows the consequences of having an Advisor Team that works well together using a fictional but representative story. Building a business is challenging enough as it is. With the right Advisor Team, you can focus on...

Business owners spend considerable time and energy trying to enhance company value by developing growth plans with well-defined goals. These plans are designed to maximize value over time, but it’s hard to achieve those goals without...

This article explains why planning for a successful business future isn’t a do-it-yourself project for business owners. At their core, successful business owners like you are builders. Whether you founded your business, or purchased...

Business owners work hard to build their business into a successful enterprise. They’ve created a strong culture, built a reputation in the community, and provided jobs for many people. But, what happens when it’s time to exit the...

The Challenge at Hand As a business owner, understanding your competitive advantage and leveraging your strengths are the catalyst behind business success. To sustain that success and grow to new heights, many business owners at some...

Running a successful business requires incredible amounts of effort, ingenuity, and capital. And when it comes to planning for the business’ future—both with and without the owner—many business owners ask, “What will this cost me?”...

All successful business owners must eventually face a stark reality: One day, they will no longer run their business! If this idea makes you uneasy, you aren’t alone. Today, we’ll show you how preparingfor a future you may not be ready...

Planning for a successful business future is like being confronted by a bear. If you run from it, it’ll catch up to you and eat you. If you attack it without a strategy, it’ll overwhelm you. And, to stretch the metaphor, simply rolling...

Depending on who you are talking to, Private Equity is either the Great Satan or the savior of small and mid-market companies in the United States. The stories depend a lot on the personal experience of the speakers. Once a vehicle for...

Buy-sell agreements exist in many, if not most, closely held businesses having substantial size and/or value. And they exist between corporate joint venture partners in many thousands of enterprises. Buy-sell agreements are agreements...

Partnerships in business are a dynamic and powerful way to propel a venture forward. We'll examine key considerations that can shape a partnership's trajectory, ensuring its longevity and success.

Owners can harm their planning efforts when they create two distinct problems for themselves. This article presents what those problems are and shows the consequences of not addressing them. Planning for your business’ future success...

Using a case study, this article shows how transferring ownership to employees can position owners to achieve many different goals. For many small-to-mid-market business owners, there are few things more important than maintaining...

Care for a COLA with Your Social Security?

David Tolson

Friday, September 30, 2022

As you might have heard, people are talking about a big bump in Social Security benefits next year.The Senior Citizens League says payments could rise by as much as 8.6 percent in 2023, compared to an increase of 5.9 percent in 2022....

In a year when soaring inflation, the war in Ukraine and a bear market have commanded headlines, the U.S. midterm elections risked becoming an afterthought. But now the election is coming back into focus. And with good reason. Capital...

What is behavioral bias?When people make irrational decisions, it’s probably because of some human biases they have. These unconscious errors in our thinking can influence everything from the food we buy to the investments we...

We often hear stories about retirees sharing money mistakes they regret in retirement. Looking at the flip side of the coin, what are some financial moves retirees almost never regret? Working With a Financial...

Although family offices are almost always formed for financial and legal reasons, at their heart, they are about family.  The family office is designed to serve the family and the family largely determines the culture of the...

Most investors implicitly understand the concept of risk. The framework was famously laid out in the capital asset pricing model (CAPM) of the 1960s, which explained expected return as a function of both firm-specific risk and an...

The meeting with the non-family CEO and 14-person family-ownership team had started off tenuously but was developing good momentum. They were meeting together to help develop a mutual understanding of the financial goals of the company...

Houston’s energy and mining-related job growth is accelerating as oilfield activity expands. High energy prices have been a boon to the region, and retail fuel prices have begun to ease. The local labor market continues to post...

Economic inflation isn’t just an external news story – it’s a painful market condition that affects nearly everyone. It can have a wide-ranging negative impact on your workforce and, ultimately, your business.How so?...

On the latest edition of Market Week in Review, Investment Strategy Analyst BeiChen Lin and Research Analyst Laura Bardewyck discussed the market reaction to recent remarks by U.S. Federal Reserve (Fed) Chair Jerome Powell. They also...

Source: American Century Investments. The examples indicate hypothetical allocations. The circles assume increased contributions over time and are not meant to indicate gains based on market performance.Retirement isn’t a single...

Four Recommendations for Successfully Transitioning Your Family Business to the Next GenerationTransitioning a company to the next generation of leaders is a complex process that can easily fail if there’s not a strong plan in...

Many companies around the world resumed paying dividends last year as COVID-19 vaccines were rolled out and businesses reopened. Equity portfolio manager Caroline Randall keeps a close watch over dividend payers, but she’s...

Active management outlook: Skilled stock pickers separate themselves in periods of heightened volatilityIs the outlook for active management still favorable?In a previous article we highlighted the gauges we look at to monitor the...

Entrepreneurs don’t use rearview mirrors.All business owners are goal oriented. From the day you founded or assumed control of your company, you set targets and achieved them. That is why you are successful. You know how to...

As we have highlighted in our Long-Term Capital Market Assumptions over the past few years, alternative investments continue their transition from optional to essential. However, when it comes to investing in alternatives...

It turns out you can have too much of a good thing. Custard ice cream comes to mind. So does Netflix stock. The movie-streaming company was one of the early winners in the pandemic, soaring 67% in 2020 and another 11% in 2021...

The deal is done. It took a while for it to cross the finish line on Capitol Hill. But the Inflation Reduction Act of 2022 (formerly known as the Build Back Better bill) was signed into law earlier this week.Even though this bill has...

Thanks to sharp inflation, U.S Social Security recipients should be getting a big raise in 2023.According to the Senior Citizens League, which regularly tracks Social Security cost-of-living adjustments, next year’s...

One of the first questions business owners ask about exiting their businesses is, “Just how long is all of this supposed to take?” The true answer is it depends. There are many things to consider as you shape your Exit...

Houston’s energy and mining-related job growth is accelerating as oilfield activity expands. High energy prices have been a boon to the region, and retail fuel prices have begun to ease. The local labor market continues to post...

The world of politics and political maneuvering never ceases to amaze us. When most considered the Build Back Better Act and its potential tax increases as being left behind – here comes its sequel. Spoiler alert: a...

Has the U.S. economy entered a recession?Recession is often defined as two consecutive quarters of economic contraction—declining real GDP. The nation’s GDP fell 1.6 percent on an annualized basis in first quarter 2022 and...

The Texas Employment Forecast estimates that jobs will increase 4.5 percent in 2022, with an 80 percent confidence band of 3.8 to 5.2 percent. The forecast is based on projected national GDP, COVID-19 hospitalizations and oil futures...

You’ve probably heard someone say, “One of my professional goals is taking ownership of a big project.” But as a business leader, have you said, “I really want my employees to desire taking ownership of their...

Love Can’t Be Blind: Preparing for a Business Transfer to Children or Insiders

David Tolson

Monday, August 8, 2022

Successful business owners do a lot of things well, and they make it look easy. This is often a sign of well-running processes and years of discipline. However, it can also be a trap for successful business owners who intend to pass...

A workaround for the Roth IRA income restrictions enables wealthier individuals to to earn tax-free income. But how long will that back door remain open?The Roth IRA is that rare prize in the U.S. Tax code: a way to earn...

In our consulting service to families and their enterprises, we often use assessments to clarify individual and organizational needs in ways that more deeply inform next steps for family leaders and company directors. We are also...

3 Value Drivers You Can Start Installing Right Now

David Tolson

Tuesday, August 2, 2022

An important aspect of growing a successful business Is creating transferable value. Transferable value is what your business is worth to someone else without you at the helm. Whether you plan to retire or die at your desk,...

Stock markets around the world have entered bear territory. In the U.S., the S&P 500 Index slid nearly 21% for the six months ended June 30, 2022, suffering its worst first half in 52 years. Today, many investors are focused on the...

Ingredients to Jumpstart the Planning Process

FBCG | The Family Business Consulting GroupIn life, you spend more time with your family or working than doing anything else. When you combine these two areas of your life into one and create a family business, the commitment required...

FBCG | The Family Business Consulting Group Welcome to the second part of my series on the value of clients being all in on a consulting engagement. In part one, we saw that when a client family isn’t sufficiently...

As you might have heard, people are talking about a big bump in Social Security benefits next year.The Senior Citizens League says payments could rise by as much as 8.6 percent in 2023, compared to an increase of 5.9 percent in 2022....

With today’s rate hike, the U.S. Federal Reserve (the Fed) has now taken steps to tighten monetary policy at each of its quarterly press conference meetings dating back to December 2016. The rhythm and predictability of its...

A common area of confusion among both business owners and advisors is the difference between a “Main Street” business, a “Middle Market” business, and a “Mom and Pop” business.Main Street...

"The data clearly show that when sentiment is at its lowest, future market returns are generally strong." - Jack ManleyLong-term investors are facing a number of challenges today. Multi-decade-high inflation is eroding purchasing power...

How Much Is Success Worth to You?

The latest consumer price index (CPI) report released Wednesday, May 11, has confirmed that the U.S. Federal Reserve has a long way yet to go in its fight against inflation. Core inflation — all items except food and energy...

“Our tools don’t really work on supply shocks.”The quote above was one of the most important statements Chair Jerome Powell made at the recent press conference after the Federal Open Market Committee (FOMC) decided to...

The U.S. economy shrank at an annualized rate of -1.4% in Q1, partially hindered by the COVID-19 Omicron variant during the first month of the year, but mainly due to a huge trade deficit.Underlying demand from both consumers and...

Inflation continues to soar, dominating conversation and stretching consumer wallets. Last week’s inflation data saw consumer prices up 8.5% year over year, the most since the early 1980s, while producer prices were up 11.2%, the...

Think back to your last doctor’s visit … were you screened for your cholesterol levels?If you are of a certain age, after your regular checkup, your doctor gives you the results of your body’s good and bad...

It was another ugly day in financial markets. The S&P 500® Index closed down 4% on Wednesday—marking its worst day since 2020, wiping out the strength from the prior three sessions and dragging the year’s...

2 Self-Made Problems That Can Harm Your Planning

"Be fearful when others are greedy and greedy when others are fearful," according to legendary investor Warren Buffett.It's a great quote but complex advice to follow, especially in 2022 when stock prices are down double-digits. It...

One thing that piques my curiosity is the belief that to be a strong multi-generational family enterprise; we must embrace the greater whole, sacrificing our own needs. Collectivism, the practice, or principle of giving a group...

Inflation and rising interest rates have prompted many equity investors to reconsider technology and high-growth companies. But this inflationary environment is different, and so are the companies best poised to rise above it...

How Time Can Affect Planning Success

401(k) lawsuits are nothing new, but their numbers have been on the rise. A record number of suits were filed in 2020, more than double the amount filed in 2018 and an 80% increase over 2019, according to Groom Law. The initial upsurge...

Protecting What You Care About: Business, Family, & Employees

Monthly insights and facts on the capital markets and retirement industry CLOSING BACK DOOR ON ROTH – As part of the $3.5 trillion budget reconciliation bill, the House Ways and Means Committee is proposing to eliminate...

Exit Paths for Business Owners

"With semiconductor companies working to increase production and capacity, the consensus view seems to be that chip shortages will persist through the first half of 2022 before beginning to improve during the second half of the year."...

Everything in perspective. It’s a phrase we’ve all heard, and we generally believe to be true. Just think about how your perspective has changed on dining out, home offices, or baking, knitting and other home-bound...

Do not act as if you had ten thousand years to throw away. Death stands at your elbow. Be good for something while you live and it is in your power. –Marcus Aurelius, Meditations Building a successful business likely took you...

More money doesn’t hurt, but health and relationships with peers matter just as much to retirees. If you’re looking for happiness in retirement for your clients, you can forget relationships with adult children, buying a...

It has been two years since the Business Roundtable’s statement on the purpose of a corporation, which read that companies should be concerned about serving all their stakeholders, not only their shareholders. This represents a...

How to Be Sure You Are Leaving Your Business in Good Hands

What does an estate planner do? An estate planner creates a financial plan for their client, usually after the birth of a child or when assets have accumulated. Estate planners help with drafting wills, naming guardians and...

As you approach retirement - as if you don’t already have enough to worry about - a concern should be diminished capacity. Common sense, and a lot of statistics, tell us that as you age, the chance of losing some of your mental...

If you don’t like making decisions, small business ownership will not be your cup of tea. If just the thought of having to choose between two undesirable alternatives gives you a headache, don’t quit your job. If you obsess...

Retaining Key Employees One Size Doesn’t Fit All

On the latest edition of Market Week in Review, Chief Investment Strategist for North America, Paul Eitelman, and Head of AIS Portfolio & Business Consulting Sophie Antal Gilbert discussed early results from the start of third-quarter...

Of all the fears investors have faced over the past 30 years, high inflation wasn’t among them. In 2021, that’s changed. Today, the biggest questions for investors revolve around inflation: How high will it go and how long...

Some trends are better than others. Big screen movies going direct to streaming services to watch at home? Count me in. Staring at your phone to watch a seemingly endless stream of TikTok videos? While my kids are in, count me out. Who...

Where do investors go to seek sources of high growth and income? At Russell Investments, our key mission is to help clients prudently fund more liability expense through investment earnings. We do this through our unique...

Why Communication Is Essential to Successful Planning

Years after creating a board with independent directors, family business owners often say that it was one of the best decisions they ever made. It stands to reason that it’s important to keep the board vibrant and well-equipped...

You’ve had a successful career and you’re almost ready to retire. While still in your peak earning years, is there a tax efficient way to give back? During this time, when you’re in a high tax bracket, charitable...

Americans are living longer than ever before. Everyone knows that, it seems, except investors! Retirees frequently underestimate their life expectancy and the number of years they are likely to spend in retirement. It is critical we...

Guiding Your Wealth to Where You Want It to Go

FBCG | The Family Business Consulting GroupSharing leadership within a family enterprise isn’t easy. It requires leaders to share power, influence, and complimentary skill sets, while also “playing well” together to...

A friend of mine, in an animated mood once declared, “everything is in flux; it’s fluxing more and more each day!” That’s how many feel about the back and forth pronouncements concerning proposed tax changes. In...

The taxman is coming. Or rather, tax increases are coming. The taxman is always coming, but now he is coming for more. We have been hearing about this prospect for a while now. But now the tax increases we have been hearing about are...

BEI | Business Enterprise Institute, Inc.Planning for a successful future without your business is a smart strategy. One of the traps that business owners commonly fall into as they begin planning for their successful future without...

Should you hire a manager or leader as part of your succession planning? Before you make that decision, you need a pretty good idea of what your exit plan is. Once your objective is set, it’s one of the answers that becomes...

New retirees — or anyone on the verge of retiring — may want to consider what an extended stock market dip would mean for their portfolio over the long term. While the market has partially rebounded from Monday’s...

The American College of Financial Services CNBC Retirement doesn’t have to be a drastic cut from a full-time job to no job at all. You may still want to work, just not as much — especially if you aren’t financially...

The American College of Financial Services CNBC Everyone wants to be happy in retirement. So what will it take to get there? It’s not just saving money, although that is key, according to certified financial planner Wes Moss,...

ES | Exit Strategies GroupA significant concern for the seller of a business who retains a minority position after a sale, is how to sell the remaining shares if things do not work out as expected. This type of sale is commonly...

I could see the other vehicle rapidly approaching me from behind. Yet there was nothing I could do. I was stuck in traffic: I couldn’t speed up, I couldn’t change lanes, I couldn’t maneuver out of the way....

What do life insurance and love have to do with each other? More than you would think. When I started my career, I was tasked with hand-delivering a death benefit check to a widow who lived in my area. The husband had owned a business,...

AB | AllianceBernstein Value stocks are once again facing questions about an uncertain future. In recent months, growth stocks have reasserted themselves after a seven-month value rally through May. But there are still good reasons to...

RI | Russell Investments On the latest edition of Market Week in Review, Senior Portfolio Manager Megan Roach and Julie Zhang, head of North America sales enablement and analytics, discussed the latest data on U.S. jobs and wages,...

Exit Strategies Group Not every business owner wants to retire, but most do, someday. And in my experience as an M&A advisor, when an owner is ready, they want to move quickly. However, for business owners who have most of their net...

Awake at 2 o'clock | A blog for business owners. When I talk to business owners about “non-qualified plans,” their first reaction is often “Hold on there. I don’t want to get in trouble!” The term...

The American College of Financial Services CNBC According to multiple studies, Americans are lagging behind where they should be in terms of retirement planning at all levels—but there are a few things advisors and clients can do...

J.P.Morgan Asset Management Principles for successful long-term investing Using Market Insights to achieve better client outcomes THE KEY TO SUCCESSFUL INVESTING ISN’T PREDICTING THE FUTURE, IT’S LEARNING FROM THE PAST AND...

JPMorgan Asset Management 2021 has already been marked by a series of extreme and catastrophic weather events, a dynamic that has gained unfortunate momentum in recent decades. The human toll and tragedy have been extraordinary, and...

FEI Daily | Jon Flack There are three main areas of establishing a continuity plan: leadership transitions, business continuity and ownership transition and finally the CEO succession plan. When it comes to succession planning for...

TheStreet Life insurance and annuities can provide tax-advantaged investment returns. Learn how to house almost any type of an investment in an "annuity wrapper." Annuities are often viewed as a way to manage the risk of longevity, of...

In the buildup to retirement, plan participants and sponsors prioritize saving and protecting assets to generate a retirement income. As a result, most retirement income products focus on alleviating key risks such as outliving assets...

Russell Investments U.S. July core inflation rises at slower rate than in June On Aug. 11, the U.S. Bureau of Labor Statistics reported that its consumer price index (CPI) climbed 5.4% during July on a year-over-year...

Continuity Family Business Consulting Read time: 3-4 minutes Using COVID-19 vaccination disagreements to highlight dispute resolution approaches As COVID-19 vaccinations continue to roll out across the country, most companies are...

Fewer than 30% of successful family businesses make it to the third generation, and fewer than 15% make it through that generation.* Growing complexity can complicate family relationships and become a barrier to the long-term...

AB | Alliance Bernstein As equity style winds shift, investors are still debating the merits of growth versus value stocks. But we believe quality remains the essential focal point, especially amid a low interest-rate environment that...

As we discussed last year, there are definite benefits for investors to defer recognizing capital gains into future years. Why? The ability to defer the recognition of gains consistently and thoughtfully can lead to improved after-tax...

Distributing or transferring wealth to the next generation can present unexpected dilemmas. These dilemmas have been exacerbated by expectations that the estate tax laws may change under the Biden administration. Currently, when...

Read time: 5-6 minutes This past year has been a wake-up call for a lot of business owners. COVID-19 has shifted priorities and forced owners to take a step back and re-evaluate what they want for themselves, their family, and their...

President Joe Biden has pledged that his sweeping American Families Plan will only target the nation’s wealthiest individuals, increasing taxes on those in the top 1.8% earning $400,000 annually or higher with the majority of new...

BY DAVID LANSKY, PH.D. JULY 16, 2021 Selling the family business is a social, emotional and psychological event as well as an economic event. Over the past 20+ years, I have advised many families who have transitioned from business...

Russell Investments Is the global economy’s uneven recovery leading to more opportunities for equity managers? The answer: Yes, according to our latest quarterly report on equity managers. Our newly released findings from the...

Steve Watson Equity Portfolio Manager July 14, 2021 American Funds, Capitalgroup.com As an investor with more than three decades of experience, the past 16 months stand out in my career as both intensely painful and incredibly...

Posted on June 22, 2021 by John F. Dini, awake@2oclock.com Remote employees can have a dramatic impact on the value of your business. If your exit strategy is to sell to a third party, take some time to think about the areas where...

Distributed Ownership Tips for Family Businesses BY DOUG GRAY, PH.D. Family Business Consulting Group APRIL 6, 2021 Many family business leaders describe ownership as a linchpin of their enterprise. Some, fearing family conflict and...

Capital Group | American Funds Americans are living longer than ever before. Everyone knows that, it seems, except investors! Retirees frequently underestimate their life expectancy and the number of years they are likely to spend in...

Editor's note: Unlike most of our other articles, this one is aimed at investors. If you’re an advisor, consider sharing this one with them. It seems likely that taxes are going to go up. The Biden administration has made it...

“Legacy is not what I did for myself. It’s what I am doing for the next generation.” - Vitor Belfort When it comes to ownership succession, many business-owning families spend thousands of dollars on attorneys,...

We’ve all heard the saying caught between a rock and a hard place, which by definition means that when you’re in a difficult situation you may have to choose between two equally unpleasant courses of action. This makes me...

Once upon a time, in what feels like eons ago, I boarded a flight from Denver to Austin. Since it was a short flight, I decided to fly as cheaply as possible: I chose a discount airline and searched for the lowest fare I could find. I...

Today, the U.S. Labor Department reported that its core consumer price index (CPI) for the month of May increased by a whopping 3.8% on a year-over-year basis. This marks the second month in a row where U.S. inflation has handily...

For business leaders in the United States, there’s something comforting about reflecting on the thoughts of the leaders of our past – the women and men who once stood where we now stand. Knowing they often faced...

Is the active management rebound likely to continue?In a previous blog post, we emphasized our belief that strong stock picking from multiple differentiated skilled active managers, combined with a disciplined approach to valuation, is...

I came in this morning planning to write about the downside of remote work. It isn’t for everyone. In fact, it creates new long-term problems for businesses and will continue to do so. (For a related topic, see my previous column...

“Time Is On My Side,” is the title of one of the classic rock ’n’ roll songs performed by Mick Jagger and the legendary English band, The Rolling Stones. This bold statement works in a song, but for small...

On the latest edition of Market Week in Review, Senior Quantitative Research Analyst Abraham Robison and Senior Research Analyst Brian Yadao discussed the latest macroeconomic data from the U.S., a key gauge of the business climate in...

Today, we find ourselves at an interesting point in the cycle of corporate defined-benefit (DB) plans. Just over a year ago in March, at the depths of the COVID-19 selloff, many plans experienced significant erosions in funded...

There’s no getting around it – employers pay a hefty sum to provide health care benefits for their employees. The average private-sector employer spends an average of $2.65 per hour, per employee, for health-insurance costs...

On the latest edition of Market Week in Review, Chief Investment Strategist for North America, Paul Eitelman, and Research Analyst Laura Bardewyck discussed the steep rise in U.S. consumer prices, the inflation outlook for the rest of...

With major league baseball’s spring training just around the corner, you may already be daydreaming about the smell of cut grass and roasted peanuts, hearing the crack of the bat and the roar of the crowd — just to feel...

Will M&A play a significant role in the post-pandemic world? Companies often rely on mergers & acquisitions to transform their businesses by buying, selling or divesting assets, and 2021 is shaping up to be a big year for deal making....

Until April 28, there was no formal tax plan from the Biden administration—only what then-candidate Joe Biden campaigned on. That changed with the release of his American Families Plan and the tax proposals that will fund it....

A Second Look: Four Retirement Rules Of Thumb Rules of thumb are common in financial literature. Who can disagree with “buy low, sell high” or “decrease your risk exposure by diversifying your portfolio”? Author...

By Matt Lanstone, ESG Head of Research and Investing. At Capital Group, we recognize the need — and value — of integrating environmental, social and governance (ESG) insights into our investment process. This objective is...

The Week on Wall Street Stocks treaded water last week amid fading prospects for a stimulus bill, fears of a second wave of COVID-19 cases, and increasing political and regulatory pressures on Big Tech companies.The Dow Jones...

The Week on Wall Street Stocks staged a powerful rally last week, riding a wave of optimism over the prospect of the passage of a new fiscal stimulus bill.The Dow Jones Industrial Average rose 3.27%, while the Standard & Poor’s 500...

The Week on Wall Street Stocks advanced last week, propelled by hopes that legislators may reach an agreement for a new fiscal stimulus package and optimism generated by a few corporate deal announcements and initial public offerings....

The Week on Wall Street Stocks were mixed last week as worries that stretched from Washington D.C., where prospects of a new fiscal stimulus bill dimmed, to Europe, which saw an increase of new COVID-19 cases.The Dow Jones Industrial...

The Week on Wall Street Stocks slipped as the technology sector remained under pressure and a mid-week announcement by the Federal Reserve failed to inspire investors.The Dow Jones Industrial Average declined 0.03%, while the Standard...

The Week on Wall Street Stocks traveled a volatile path last week as investors appeared concerned about the upcoming elections, an uncertain economy, and more delays with additional fiscal stimulus. The Dow Jones Industrial Average...

The Week on Wall Street A late week sell-off sent stocks broadly lower as investors took some profits after stocks reached all-time highs earlier in the week. The Dow Jones Industrial Average slid 1.82%, while the Standard & Poor’s...

The Week on Wall Street Stocks advanced relentlessly last week on positive COVID-19 developments, encouraging economic data, and a supportive policy shift in the Fed’s approach to its target inflation rate. The Dow Jones Industrial...

The Week on Wall Street Stocks powered to another week of gains as the S&P 500 and Nasdaq Composite set multiple new record highs along the way.The Dow Jones Industrial Average was essentially unchanged while the Standard & Poor’s 500...

The Week on Wall StreetStock prices drifted higher in an otherwise quiet news week, as a slowdown in new COVID-19 cases outweighed a Congressional impasse on a new fiscal-spending measure. The Dow Jones Industrial Average gained 1.81%...

The Week on Wall StreetOverlooking stalled efforts by Congress to pass a new fiscal stimulus bill, stocks marched higher last week with the Dow Jones Industrials leading the way and the NASDAQ Composite setting multiple fresh record...

The Week on Wall Street Stocks were mixed last week amid a busy week of earnings, some troubling economic data, and seemingly little progress on a new fiscal stimulus package.The Dow Jones Industrial Average slipped 0.16%, while the...

The Week on Wall Street Stocks slipped in the final days of trading last week on higher jobless claims and rising tensions in the U.S.-China relationship. The Dow Jones Industrial Average lost 0.76%, while the Standard & Poor's 500...

The Week on Wall StreetStocks were mixed last week as investors reacted to positive economic data, progress on a COVID-19 vaccine, and the continued nationwide increase in COVID-19 cases. The Dow Jones Industrial Average gained 2.29%,...

The Week on Wall StreetStock prices notched solid gains last week, looking past an increase in COVID-19 cases and any potential economic concerns raised by the trend. The Dow Jones Industrial Average increased by 0.96%, while the...

The Week on Wall StreetIn a holiday-shortened week, stock prices turned higher as encouraging economic data outweighed an increase in COVID-19 cases and a rollback in economic re-openings.The Dow Jones Industrial Average rose 3.25%,...

The Week on Wall StreetA jump in COVID-19 cases dampened investor enthusiasm last week, sending stock prices lower on worries that rising infections could derail the economic recovery. The Dow Jones Industrial Average slumped 3.31%,...

The Week on Wall StreetStocks moved higher last week on news of more Federal Reserve market support and diminished concerns that new COVID-19 cases might lead to another economic shutdown. The Dow Jones Industrial Average rose 1.04%,...

The Week on Wall StreetInvestor sentiment turned negative last week, amid an increasing number of COVID-19 cases in states where reopening has been underway as well as a subdued economic forecast from the Federal Reserve. The Dow Jones...

The Week on Wall StreetA positive jobs report sent stocks soaring last Friday, capping a solid week as evidence of a global economic recovery outweighed concerns over civil unrest and tensions with China.The Dow Jones Industrial...

The Week on Wall StreetThe shortened week, which began with a powerful two-day rally of trading, was enough to drive the markets into another week of solid gains. The Dow Jones Industrial Average rose 3.75%, while the Standard &...

The Week on Wall StreetUpbeat comments by the Federal Reserve Chairman and more signs of an economic turnaround combined to help fuel a powerful rally in the stock market last week.The Dow Jones Industrial Average rose 3.29%, while...

The Week on Wall StreetStocks drifted lower last week, weighed down by Federal Reserve Chairman Jerome Powell's unsettling comments on the economy and signs of renewed tensions with China.The Dow Jones Industrial Average fell 2.65%,...

The Week on Wall StreetDespite a historic downturn in employment, stocks managed to climb higher last week as investors were emboldened by the pace of economic re-openings, both here and abroad.The Dow Jones Industrial Average gained 2...

The Week on Wall StreetStock prices ended the week slightly lower, despite news of positive results from a test trial of a COVID-19 drug treatment and several states easing their economic lockdowns. The Dow Jones Industrial Average...

The Week on Wall StreetStock prices bounced around last week as investors reacted to wild swings in the price of oil and reports that called into question the efficacy of two potential virus treatments.The Dow Jones Industrial Average...

The Week on Wall StreetStock prices pushed higher last week as news of a White House plan to reopen the economy and reports of a potential COVID-19 treatment helped the market overcome weak economic data and an ugly start to the...

The Week on Wall StreetThe stock market staged a broad rally this week, buoyed by the prospect that COVID-19's grip on the nation may be easing and news of another Federal Reserve program to help stabilize businesses.The Dow Jones...

The Week on Wall StreetModest declines in stock prices this week masked the volatile inter- and intraday price swings as investors digested poor economic data and a warning from the president that the worst days of the COVID-19...

An open-ended commitment by the Federal Reserve to support American businesses and capital markets along with the passage of a $2 trillion aid package improved investor sentiment and drove a strong rally in stock prices. The Dow Jones...

The Week on Wall StreetThe stock market suffered through another volatile week as it wrestled with the health and economic fallout of the domestic spread of the coronavirus. Swift and decisive actions by the Federal Reserve and policy...

The Week on Wall StreetMarkets remained exceptionally volatile, buffeted by the spreading impact of coronavirus, uncertain responses from federal policymakers, and the sudden drop in oil prices.The Dow Jones Industrial Average fell 10...

The Week on Wall StreetHeightened coronavirus fears, falling yields, and Super Tuesday primary results sent stocks on a rollercoaster ride of sharp price swings, leaving stocks marginally higher for the week.The Dow Jones Industrial...

The Week on Wall StreetStocks fell sharply last week as Wall Street considered how the coronavirus outbreak might influence global business activity and household spending.The selloff became a correction for the U.S. markets. The S&P...

The Week on Wall StreetTraders paid close attention to coronavirus developments and earnings last week, while wondering how the former might eventually impact the latter. Concern over updated infection numbers moderated risk appetite.A...

The Week on Wall StreetDaily headlines about the coronavirus had little impact on stock market averages last week. Earnings and mergers had more influence. All three Wall Street benchmarks improved. The Nasdaq Composite rose 2.21%,...

The Week on Wall StreetStocks advanced four days out of five during the past market week, erasing the losses of the week before. The Nasdaq Composite surged 4.04%, the S&P 500 3.17%, and the Dow Jones Industrial Average 3.00%. Foreign...

The Week on Wall StreetStock benchmarks declined for a second straight week as coronavirus news tempered risk appetite.The S&P 500 fell 2.14% on the week. The Nasdaq Composite dipped 1.76%, and the Dow Jones Industrial Average, 2.55%....

The Week on Wall StreetStock prices fell last week as investors considered the potential health and economic risks of the flu-like coronavirus.Foreign stock markets, as tracked by the broad MSCI EAFE index, fell 1.03% for the week....

The Week on Wall StreetTraders were in an upbeat mood last week, reacting to news out of Washington: the signing of the phase-one trade deal between the U.S. and China as well as the Senate passage of the U.S.-Mexico-Canada Agreement...

The Week on Wall StreetThe market had a choppy five days, with traders reacting to geopolitical developments and weaker-than-expected jobs data. Even so, the three major U.S. equity indices posted weekly gains and continued their...

The Week on Wall Street Stocks descended from record highs Friday, as traders reacted to a U.S. drone strike that killed Iran's top military officer. Oil prices rose more than 3% following the breaking news.[1] Wall Street benchmarks...

What Drove the Markets? Four factors influenced investment performance in 2019: a shift in U.S. monetary policy, the ongoing trade dispute between the U.S. and China, earnings, and the economy. Stocks reached record highs in 2019. The...

The Week on Wall Street The U.S. and China announced a limited trade agreement last week. That news lifted U.S. and foreign stocks, leading to weekly gains. Advancing 0.91% on the week, the Nasdaq Composite outperformed the S&P 500...

The Week on Wall Street Key Wall Street benchmarks were up and down last week – or rather down and then up. A Tuesday retreat was offset by a Friday rally spurred by the Department of Labor’s November jobs report. While the S&P 500...

The Week on Wall Street As November wrapped up, U.S. equity benchmarks advanced. Stocks were again aided by a sense of optimism that a preliminary U.S.-China trade deal could be near. For the week, the Nasdaq Composite added 1.87%;...

The Week on Wall Street Stocks declined last week as mixed signals emerged about the progress of U.S.-China trade negotiations. The three major Wall Street benchmarks all took weekly losses. The Dow Jones Industrial Average declined 0...

The Week on Wall StreetStock benchmarks were little changed for much of last week, but a rally occurred Friday after news broke that the U.S. and China could be closing in on the first phase of a new trade pact. At Friday's close, the...

The Week on Wall Street Domestic and international stocks rose last week. Risk appetite outweighed concerns about the state of U.S.-China trade discussions. The Dow Jones Industrial Average, Nasdaq Composite, S&P 500, and MSCI EAFE...

The Week on Wall Street A better-than-forecast jobs report prompted a stock market rally Friday, two days after traders witnessed another interest rate cut by the Federal Reserve. Both the S&P 500 and Nasdaq Composite ended the week...

The Week on Wall Street The S&P 500 came within 0.1% of a record close Friday. Stocks were lifted last week by positive news on U.S.-China trade negotiations, plus earnings announcements. The Nasdaq Composite posted the largest weekly...

The Week on Wall Street Earnings helped give the Nasdaq Composite and S&P 500 a slight lift last week, offsetting investor disappointment over the small scope of the preliminary U.S.-China trade deal reached on October 11. Blue chips...

The Week on Wall Street Stock prices pushed higher last week, as investors remained hyper-focused on any new developments with the U.S. trade negotiations with China. The Dow Jones Industrial Average picked up 0.91%, while the...

The Week on Wall Street The fourth quarter started with a mixed week for equities. The Dow Jones Industrial Average lost 0.92% for the week; the S&P 500, 0.33%. In contrast, the Nasdaq Composite improved 0.54%. Overseas stocks pulled...

The Week on Wall Street Stocks retreated last week. Traders worried that the formal impeachment inquiry of President Donald Trump might distract White House officials from their pursuit of a trade deal with China, and shift the focus...

The Week on Wall Street Investors reacted to two major news items last week, one far more of a surprise than the other. The Federal Reserve did indeed make a rate cut, matching Wall Street expectations. Drone strikes on two of the...