Setting estate planning goals

Part of the exit planning process is doing a personal financial review. A thorough exit plan should include an estate plan as part of the process. As you and your attorney begin planning, consider your goals for an estate plan. Here are some common goals to start the conversation: Secure the financial future of your loved ones Guarantee that assets are distributed to the intended recipients Prevent legal conflicts with third parties Reduce transfer taxes and income taxes as much as possible Limit administrative costs and avoid probate Protect family harmony Assure good relations among business owners Provide for the education of children or grandchildren Contribute to a favorite charity Reduce liabilities that might endanger the estate Guarantee the capable management of the estate Assure sufficient funds for the administrators of the estate For more information about the estate planning process, within the context of exit planning, check out “Exit Insight: ‘Getting to Sold!’” by author Joseph M. Maas, founder of Synergetic Finance, SFM Advisors, Synergy 401(k) and Merrell Publishing. It’s available for purchase at MerrellPublishing.com....

Investment Selection, Monitoring and Control

After you and your financial planner have decided on the most appropriate asset classes to include in your investment portfolio, and also have decided on the allocation of assets within the asset classes, the next step is to select the actual investments that are most likely to help your portfolio achieve the desired results. Here are some excellent criteria you and your financial manager should consider when making investment selections: Past performance compared to other investments having the same investment objective. Consideration shall be given to both performance rankings over various time frames and consistency of performance. Costs relative to other funds with similar objectives and investment styles Size of the fund Length of time the fund has been in existence, and length of time it has been under the direction of the current manager(s). Also, consider whether or not there have been meaningful changes in the manager’s organization and personnel. The historical volatility and downside risk of each proposed investment How well each proposed investment complements other assets in the portfolio The current economic environment The likelihood of future investment success, relative to other opportunities Excerpt from “Exit Insight: Getting to ‘Sold!’” by author Joseph M. Maas, pp. 251-252. For more info. like this, buy the book online now. ...

Share Your Expertise With The World

You’re a busy professional with expertise to share with the world. You want to write a book, but how can you squeeze that in between client appointments, work, community and home life? That’s where Merrell Publishing steps in. Our expert team offers a range of services to help you share your expertise with others: – Writing – Ghostwriting – Editing – Design and Layout – Publishing – Marketing Whether your specialty is real estate, accounting, consulting, advising or another service-oriented business, we can help! Contact us today to find out more about our packages. The Merrell Publishing Team is ready to help you share your...

What’s Your Exit Strategy? Part 2

(continued from our last blog post) Good choices A good option for many entrepreneurs includes exiting by being acquired, while continuing to offer help via a consulting contract. This choice may put an investor’s mind at ease, as it’s plausible to envision this while still being at an early stage in your company’s history. The acquirer needs time to get up to speed and offer the same level of service to your existing customers while operating the company. Some owners grow the company to a certain point within a desired sales or profitability range, and then proceed to sell operations to a logical acquirer – someone in your market space with a high level of interest. Strategic buyers like these usually offer the highest price. As mentioned before, it may make sense to hold on to certain parts of intellectual property including patents on technology, and offer to license the technology to the acquiring company. While the finer points of this type of plan usually require negotiation, having upfront discussions with your investors regarding benefits and risks of your exit will help in raising the initial capital until stability is established. Once you’ve raised capital and have consistent revenue over a period of time, then your exit plan may change as new realities emerge and the business changes. It is important to understand how these initial options will benefit the company in case you are not to remain there. Through this discussion process, you will carefully express the likelihood of potential events to investors, all while managing your existing stakeholders, and building operational efficiencies that successfully move the company...

What’s Your Exit Strategy? Part 1

As part of working with business owners to help grow and sell their companies, Synergetic Finance is often asked by clients to assist in answering an important fundamental question: “What’s your Exit Strategy?” This is not a simple question, however. It depends on who is asking it. Are you being asked by friends and family, or are you asking yourself what you plan to do once you exit the business? Or are you being asked by someone else that is a key stakeholder, such as a potential investor? There is usually a long term exit strategy (yours) and a short term exit strategy (the investor’s.) The investor group you are raising capital from wants the enterprise to grow according to plan, and is often looking for great returns paid out as quickly as possible – or longer if they are more patient. Moving beyond friends and family to raise money from professional investors requires developing a new perspective on your capital partners. Your viewpoint may differ slightly in terms of time frame, so it is important to meet and understand your audience appropriately. To successfully raise capital from investors, it is important to craft an answer that keeps them happy, yet positions and builds your business for the long term. Exit strategy for investors A proper exit strategy illustrates a realistic outcome for both your and your stakeholders. While your strategy may change over time, exit statements are made from the perspective of the current time, like your company’s value. A financial advisor like Synergetic Finance can help you manage the path from this point in time to a...