Selling a Family Business: Preparing for a Transformational Event

It’s generally thought that there are several cycles that reflect where a business is in preparedness for a sale. These capture the economy, the market, and the mindset and planning of the business owners.

From an economic standpoint, the liquidity cycle is the one that matters. This cycle gauges the amount of available liquidity and the current appetite of investors to invest in companies.1 With record amounts of cash sloshing around looking for investments and interest rates continuing to be low, the liquidity cycle is currently at an advantageous point, and looks poised to remain so.While getting the right price is clearly a big consideration, there are a lot of other things to think through that are just as important.

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GMB Episode #128: Using Technology to Drive Business Value With Chris Hood

 

We live in the era of tech giants, where technology-driven businesses keep innovating and newly emerging technologies are becoming a key factor in driving business value. Our guest today, Chris Hood, is the Head of Business Innovation and Strategy at Google Cloud. Throughout the conversation, Chris discusses how he assists enterprises in driving economic value through the smart application of technology.

 

 

Show Notes

[01:38] Chris’s Background – Chris shares his background, as well as some of his daily duties at Google.

[04:48] Digital Strategy – Chris describes how the process of deploying technology changes based on the desired customer experience and explains how difficult this can be to navigate in larger organizations.

[15:20] Frequent Technologies – Chris cites specific types of technology that he sees commonly employed and explains how they assist organizations in generating commercial value.

[22:56] API – Chris expresses his thoughts on API monetization.

[27:41] AI and Machine Learning – Chris describes common applications of AI and machine learning.

[39:12] The Future – Chris shares his predictions for the future.

[47:09] Business Owners in Transition – Chris provides some important considerations for business owners in transition.

[54:58] Twitter Deal – Chris comments on Elon Musk’s $44 billion offer to acquire Twitter.

 

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GMB Episode #126: Pulling the Wisdom From Jeff Bezos’ Investor Letters With Steve Anderson

 

It’s an undeniable fact that Jeff Bezos did some exceptional work to develop Amazon into the e-commerce giant it is today. What if you could discover Amazon’s secrets and translate them into your business? Our guest today took on the task of analyzing every investor letter addressed by Jeff Bezos to Amazon shareholders dating back to 1997. Steve Anderson, Co-Founder & CEO at Catalyit™, and the author of the international bestseller, The Bezos Letters, joins us to dive into the 14 principles that created the Amazon that we know today.

 

 

Show Notes

[02:52] Summary of Letters – Steve starts the conversation with a synopsis of the letters, as well as what we can take away from them as we manage our own businesses.

[05:08] Beginning of Amazon – Steve explains Jeff Bezos’s background, how his childhood inspired him, and how he ended up launching Amazon.

[11:14] Becoming a Tech Giant – Steve dives into the growth of Amazon from its IPO in 1997 to current day.

[24:38] Four categories– Steve discusses the four categories mentioned in his book, and provides an excellent explanation of the 14 principles.

[31:44] High-Velocity Decisions – Steve explains how Jeff Bezos used a unique decision-making process to accelerate Amazon’s growth.

[45:56] Amazon’s Culture – Steve expresses his thoughts on Amazon’s culture.

[54:40] Steve’s Background – Steve shares his background, his career as an entrepreneur, and how he came to produce his phenomenal work.

 

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The Federal Reserve vs. Inflation: Round One

Wednesday’s long-anticipated announcement by the Federal Reserve that the key Fed funds rate would increase by 25 basis points and the accompanying statement by Chairman Powell had the immediate impact of reassuring the markets. St. Patrick’s Day may not have brought pots of gold, but after thirteen no-good, very bad weeks for the S&P 500, we’ll take a push back into positive territory.

Will it last? Given the invasion of Ukraine, the impact of sanctions, the downstream effect on supply chains and food supply, and the geopolitical uncertainty unleashed by Russia’s aggression, the Fed’s job in fighting domestic inflation is much harder now.

We walk through the Fed’s move and Powell’s language, the impact of the rate increase, and what investors can do to prepare their portfolios and budgets.

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GMB Ep #122: How to Retain Top Employees Amid the Great Resignation With Jeff Kortes

 

In today’s day and age, it takes more than just money to keep top performing employees from moving on to better opportunities. Jeff Kortes joins us today to discuss employee retention amid the Great Resignation. Jeff possesses a wealth of experience in this subject, and spent ten years in human resources before resigning and establishing his consulting practice. Throughout the episode Jeff shares the importance of workplace culture, as well as tips for hiring and retaining the right people for your business.

 

Show Notes

[02:51] Great Resignation – Jeff describes the Great Resignation and how the COVID-19 pandemic has affected the workforce.

[05:41] Shifts in the Workforce– Jeff explores the implications of younger workers seeking other opportunities or relocating within an industry.

[06:36] Give Your Employees C.R.A.P – Jeff discusses the correlation between workplace culture and employee retention, and shares a few ways that businesses can kill employee loyalty.

[13:33] Jeff’s Work – Jeff describes how his practice helps companies diagnose the underlying cause of their issues.

[17:52] Employee Retention Problems-  Jeff describes how he determines whether a business has undetected or misdiagnosed staff retention issues.

[20:30] Strategy and Correction – Jeff shares their top strategies for correcting issues they find along the way.

[27:35] Finding the Right People – Jeff provides his perspective on how to know that you are hiring the right type of individual for your company.

[34:19] The Future of Work – Jeff discusses the recent shift in the workplace, and how this will affect future generations’ work habits.

[36:17] Virtual Connection – Jeff and Grant discuss how to develop and sustain culture in the day and age of remote work.

[44:04] Jeff’s plans – Jeff shares his future plans and how people can connect with him.

 

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Small Business Retirement Plans — SIMPLE, SEP-IRA and SOLO 401(k)

Small companies shouldn’t forgo retirement savings just because a 401(k) plan can be expensive to set up and maintain. There are options specifically for smaller businesses: a Savings Incentive Match Plan for Employees (SIMPLE) plan, a Simplified Employee Pension (SEP) plan, and a SOLO 401 (k).

If your company has more employees than just you and your spouse, you may want to consider either a SIMPLE IRA or a SEP-IRA. The plans have similarities and a few differences that must be considered when deciding between the two. Knowing the details of each type can help you decide which is the best choice for you, or which to offer your employees if you own a small business.

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Buy-Sell Agreements: Ensuring Smooth Business Transitions

Building a business is all about the day-to-day decisions. But what happens to the business if the primary decision-maker isn’t there? Creating a continuity plan that outlines transition planning should be part of the foundational documents of a business at any stage. Valuing the business, codifying the steps that will be taken and planning for transfer of ownership can help protect both the business and the interests of everyone involved – including family.

When partners start a company, they may document how to maintain its management and control if a partner dies, becomes disabled, or leaves the company. A well-designed, buy-sell agreement, or buyout agreement, is a legally binding agreement between co-owners of a business that stipulates the procedures if a co-owner dies, chooses to leave the firm, or retires.

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Estate Planning for Small Business Owners

Building a business is all about taking risk. You put your belief in yourself, your money, time, and more on the line to create something that can grow and succeed. But whether your business will fund your retirement plan, or you hope to create a multi-generational family enterprise, there’s one area of risk you shouldn’t be taking.

If you own a business, you need an estate plan. And not just any plan. It needs to cover your wealth and safeguard your family. It also needs to ensure that the business can carry on or that there is an orderly plan for a sale or wind-down.

You’ll most likely need to consult with a financial advisor, a trust and estates attorney, and a tax accountant to get a comprehensive plan in place.

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GMB Ep #120: A CFO’s Perspective on Managing Cash, M&A, ESOPs, & the Changing Business Environment

 

Have you ever heard the saying that revenue is vanity, profit is sanity, and cash is reality? Today’s guest, Robert E. Bendetti, is the CFO at Life Cycle Engineering. He holds a master’s degree in accounting and financial management and an MBA specializing in small business management and entrepreneurship, as well as being a certified public accountant. Throughout the episode, we cover several key concepts that help business owners grow their businesses and adapt to ever changing markets.

 

 

Show Notes

[03:21] Background – Robert shares his background and the company’s operations.

[05:20] Cash Flow Management – Robert emphasizes the importance of cash flow management and gives his perspective as a CFO on appropriate cash management for small enterprises.

[08:48] Cash Conversion Cycle – Robert discusses approaches to optimize the cash conversion cycle, emphasizing the importance of timely invoicing, collection challenges, and the smoothness of the payment process.

[11:50] Tips – Robert shares an approach for reducing turnaround time and illustrates a simple mechanism to increase collection rates.

[20:29] Profitability – Robert points out how to convert cash to profit, describing what balance sheet and income statement items need to be monitored.

[23:25] Paying Yourself vs. Reinvesting – Robert outlines how to decide whether to invest additional funds to boost profitability and future growth or pay yourself.

[31:41] Transition – Robert addresses what individuals approaching retirement or transition should consider 18 months before leaving a firm.

[40:25] Employee Stock Ownership Plan – Robert dives deep into ESOP and related topics.

[51:31] Global CFO Council – As President and Founder of Global CFO Council, Robert mentions what he hopes to accomplish through the organization.

 

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