Business Exit Strategies:Family-Owned and Other Business

Author: 
Frederick D Lipman

 

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

 

 

 

Contents:

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

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

Key Features:

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