A few weeks ago, Axial, a leading website connecting capital providers with business owners, published a well written piece covering several key questions business owners need to ask of themselves about their net worth BEFORE closing a transaction with any buyer.
Entitled “8 Questions to Answer About Your Personal Wealth Before Transacting,” the article walks you through some important concepts that every business owner should carefully consider before closing a deal with a buyer.
Written by Andrew Cardone, a partner with Bestwick Cardone Group, a wealth management group within Bank of America/Merrill Lynch, Mr. Cardone does a great job of highlighting some key questions business owners need to address, including:
Although each of these is important, based on our experience, the ones I have highlighted above are generally the ones that our clients tend to neglect the most. In fact, far too few have sat down with a wealth manager and created a future financial plan at all. Because of this we encourage our clients to create a relationship with a wealth management team long before the deal is closed. It is simply too vital and important to know how much invested capital you will need to reach your financial goals post close.
But as important as each of these is, one key item is not listed above and perhaps is the most important part of any wealth management discussion: How can you plan what you will need to live on for the rest of your life post sale if you have no idea what your company is worth in today’s market?
Simply put, you can’t.
So, even if you are proactive and meet with your wealth management team to create a plan, if you are like most business owners, most (if not all) of your personal net worth is tied up in one highly illiquid asset: your business. Without a good idea of what that asset is worth today, you can’t create a plan that is accurate or has the substance you need going forward.
This is what sets the Generational Equity system apart and makes us so successful. We conduct a complete and thorough evaluation of every client who signs up with us. This 60-day to 90-day step is vital for us and for our clients because it allows us to conduct financial due diligence on the business, recast the financials, and determine the current business enterprise value. For our clients, it is equally important because it gives them a solid idea of what the company is worth, which is vital for both estate planning AND determining if the deal is optimal for the owner.
Here are some folks talking about how critical our evaluation was to a successful conclusion of their transaction:
The last link above highlights another added benefit of our professional evaluation: based on our findings, we will provide you with a tangible Roadmap for Enhancing Value. Through these financial metrics, based on up to two dozen various ratios and industry norms, we will objectively view your business as a buyer will. The strategies we provide our clients often allow them to enter our hold-and-grow program and return a few years later with a much more “salable” business, with an enhanced valuation.
Again, before you can actually have a productive meeting with your wealth manager, you need to know what your business will generate for you upon its sale. If you are at a point in your life, and your company’s development, that you need to know what it is worth, then you need to attend a Generational Equity exit planning conference. While there you will learn about the various methods that can be used to value a company, and the upside and downside of each method. You will also be able to learn more about our exit planning services including our evaluation team and deal making success.
To learn more about how you can attend a conference near you, please visit our website or call us at 877-213-1792 and ask to speak with one of our senior business advisors.
By Carl Doerksen, Director of Corporate Development at Generational Equity.
© 2017 Generational Equity, LLC. All Rights Reserved.
The information we learn from customers helps us personalize and continually improve your experience. Here are the types of information we gather.
We receive and store any information you enter on our Web site or give us in any other way. We do not sell or rent your personal information to others without your consent. We use the information we collect only for the purposes sending promotional information, enhancing the operation of our site, serving advertisements, for statistical purposes and to administer our systems. We DO NOT use third parties to provide customer service, to serve site content, to serve the advertisements you see on our site, to conduct surveys, to help administer promotional emails, or to administer drawings or contests, but reserve the right to do so in the future without advance notice.
Generational Capital Markets, Inc.’s affiliates are all part of one corporate family, they work with one another and may work together to provide services to you. The sharing of your information among affiliates enables Generational Capital Markets to serve you more efficiently and makes it more convenient for you to do business with Generational Group. Generational Capital Markets is permitted by law to share information with its affiliates. All of our affiliates follow similar privacy policies.
For reasons such as improving personalization of our service, we might receive information about you from other sources and add it to our account information.
Generational Group may license the use of its intellectual property including but not limited to its name, likeness, and logo for the use of affiliated offices. Such affiliated offices may not be owned, controlled, managed, supervised or staffed by employees, officers, or agents of Generational Group. Affiliated offices may be independently owned and operated. For more information about a particular office, please contact Generational Group at its office in Dallas, Texas.
This page may contain other proprietary notices and copyright information, the terms of which must be observed and followed.
Information on this web site may contain technical inaccuracies or typographical errors. Information may be changed or updated without notice. Generational Group may also make improvements and/or changes in the products and/or the programs described in this information at any time without notice.
Generational Group does not want to receive confidential or proprietary information from you through our web site. Please note that any information or material sent to Generational Group will be deemed NOT to be confidential. By sending Generational Group any information or material, you grant Generational Group an unrestricted, irrevocable license to use, reproduce, display, perform, modify, transmit and distribute those materials or information, and you also agree that Generational Group is free to use any ideas, concepts, know-how or techniques that you send us for any purpose.
Our computer system protects personal information using advanced firewall technology.
Information Generational Group publishes on the World Wide Web may contain references or cross references to other products, programs and services that are not announced or available in your country. Such references do not imply that Generational Group intends to announce such products, programs or services in your country. Consult a Generational Group representative for information regarding the products, programs and services which may be available to you.
Generational Group makes no representations whatsoever about any other web site which you may access through this one. When you access a non-Generational Group web site, please understand that it is independent from Generational Group, and that Generational Group has no control over the content on that web site. In addition, a link to a non-Generational Group web site does not mean that Generational Group endorses or accepts any responsibility for the content, or the use, of such web site. It is up to you to take precautions to ensure that whatever you select for your use is free of such items as viruses, worms, Trojan horses and other items of a destructive nature.
IN NO EVENT WILL Generational Group BE LIABLE TO ANY PARTY OR ANY DIRECT, INDIRECT, SPECIAL OR OTHER CONSEQUENTIAL DAMAGES FOR ANY USE OF THIS WEBSITE, OR ON ANY OTHER HYPERLINKED WEBSITE, INCLUDING, WITHOUT LIMITATION, ANY LOST PROFITS, BUSINESS INTERRUPTION, LOSS OF PROGRAMS OR OTHER DATA ON YOUR INFORMATION HANDLING SYSTEM OR OTHERWISE, EVEN IF WE ARE EXPRESSLY ADVISED OF THE POSSIBILITY OF SUCH DAMAGES.
Generational Capital Markets, Inc. ("GCM"), member FINRA/SIPC, is wholly owned by Generational Capital, LLC ("GC"). Both GCM and GC are affiliated with Generational Equity, LLC; and all part of the Generational Group of companies. This website is solely for general informational purposes and is not guaranteed by us to be accurate and complete statements of fact and should not be relied on as such. Opinions in this website constitute the current judgment of the author as of the date and its last update. The content of this website does not necessarily reflect the opinions of GCM, and is subject to change without notice, and GCM is not under any obligation to update or keep current any information contained herein. This website does not constitute any personal recommendations and does not take into account the specific investment objectives, financial situation or particular needs of the reader. The information contained in this website should not be construed as an offer, or a solicitation of an offer, to buy or sell any securities or other financial investments. The information presented should not and cannot be viewed as an indicator of future performance. To the extent permitted by law, GCM does not accept any liability arising from the use or retransmission of the information in this website.
Furthermore, all information contained within this website is the property of Generational Group.
Honored to win Investment Banking Firm of the Year 3 years running.
Over 50 awards and counting.
Sign up to receive regular email updates, industry-leading insights and details on complimentary M&A executive conferences in your area from our award-winning team
Success, you have been added to our list.