One of the most important parts of a strategic  business plan is the owner's exit strategy!

It doesn't matter whether a business owner wants to pass the business to his children, transfer it employees, or sell it to a third party, it is never too early to start preparing an exit strategy.  Too often,  business owners decide it is time for them to retire and they find their businesses are not able to survive  without them.  The ground work has not been laid for them to retire.  No one is willing or able to take over the management of the company.  Their business has a management vacuum!

American Business & Financial  specializes in exit strategies.  We have the experience, resources, and know-how to help develop and implement the optimal exit plan.  Business succession is a process, not an event.  It takes time and planning to occur successfully.  When done well; no one even notices it took place!

Basically, there are four exit strategies; family succession, employee transition, sale to a third party, and liquidation.  These strategies are sometimes used in combination.  In the next pages, we have provided an overview of these four options.

Family Business Succession

Most family business owners hope that someday control of their business will be passed to the next generation.  It is the American Dream.  The reality however is  that less than 30% of family businesses survive to a second generation.  Transitioning a family business to the next generation is very difficult.  In addition to ensuring business success, family harmony must be maintained.  You need to consider how such a transition will affect everyone in the family, the owner, their spouse, their children, the children's spouses, and key employees in the business.  It can be a daunting task!

The coaching staff at American Business & Financial, Inc., recognizes how difficult these family business transitions can be.  We specialize in helping you find answers to the difficult questions that need to be asked.

•  Can you really afford to retire?

•  Are family members capable of running the business?

•  Do family members get along well enough to run the business?

•  Do family members really want to take over the business?

•  What impact do family dynamics have outside the business?

•  What impact do business dynamics have on the family?

There is no one that has a greater vested interest in seeing your business continue than your current employees; their livelihood depends on it!  But, most employees have always been employees.  Moving into an ownership role is usually something they are emotionally and financially unprepared for!

Most business owners have a tendency to make all of the important decisions.  It's the rare entrepreneur that shares the decision-making responsibility with employees.  Employees are also usually insulated from the majority of the risk of being in business, and, as a result, they become very risk adverse.  As employees, they have come to expect a 'forty hour' work week as opposed to the owners; We've got to do what it takes' attitude.

The coaching staff at American Business & Financial, Inc., understands the difficulties involved in an employee succession.  We specialize in  helping you find answers to the difficult questions that need to be asked.

•  What is your business worth?

•  Can your employees afford to pay that amount?

•  Can you afford to retire?

•  Are the employees capable of running the business by themselves?

•  Will they be happy in that role?

For many business owners, the eventual sale of their business is the pot of gold at the end of the rainbow!  Their businesses usually represent a major portion of their net worth.  Most business owners however have never bought or sold a business before.  They know they shouldn't use the sale of their business as a learning experience.  There are just too many pitfalls!

That's where our consultants come in.  Our consultants all have experience in successfully transitioning businesses.

American Business & Financial, Inc., does business brokerage in Wisconsin and Minnesota.  We also coach people in all 50 states that prefer to undertake selling their own businesses themselves.  Whether we act as your broker or as your coach, we are very familiar with the third party sale process and can help you find answers to the difficult questions that need to be asked.

•  What is your business worth?

•  Can you afford to retire?

•  How do you find a buyer that is willing to pay what your business is worth?

•  How do you minimize your taxes when you sell your company?

•  How do you protect the confidentiality of your business when it is for sale?

•  How do you minimize risk while selling your business?

 Although liquidation is usually not the most lucrative exit strategy, certain situations leave no other options.  It is our goal to maximize the return on the value of your business.  Even in liquidation,  steps can be taken that increase the financial return on a business assets.  The most important step is to see if the business has any intangible assets such as customer relationships and vendors that add additional value to the business over and above the value of its tangible assets.  Many time buyers purchase things that sellers don't even know they have.

In addition to finding hidden value, American Business and Financial, Inc., helps you get connected with experts that make 'Going out of Business Sales' very profitable events.

Our Coaching Program for Business Buyers
and For-Sale-By-Owners

Whether you are preparing for a family business succession, transitioning your business to your employees, buying, or selling a business, our coaching program can be tailored to fit your specific needs. We coach business buyers and owners that want to sell their own businesses in the various nuances of buying and selling businesses. We also offer numerous services that can help ensure the success of their own private transactions.

Business Valuation Regardless of the type of transition you are considering, determining the value of the business is a critical step. We can help you determine the total value of any business. This value includes both its physical and its intangible assets, the "blue sky" that is created by a company.s earning potential.

Business Brokerage / Coaching Buying or selling a business is much more complex than buying or selling real estate. In addition to dealing with physical property, you have to deal with numerous intangibles; things like deal structure, minimizing tax ramifications, transitioning the seller's goodwill to buyers and the financing of intangibles that have no collateral value. You also have to be careful to protect the confidentiality of both the business and the identities of prospective business buyers.

American Business Financial has completed numerous business transactions working with both buyers and sellers. We work as either your consultant working on only limited aspects of your transaction or as full fledged business broker that handles all aspects of your sale.

Regardless of whether we're working for you as your coach or as a business broker we can help you protect your anonymity by acting as your initial point of contact during the early stages of negotiation. We can help you produce and mail anonymous mailings and do blind telemarketing on your behalf. We can help you pre-qualify unsuitable buyers and sellers, competitors and financially unqualified parties prior to releasing sensitive information to them.

Business & Financial Feasibility Studies Before any business transition takes place, it is important to determine whether the deal is financially feasible for all parties involved. We help buyers determine whether a business will provide adequate return on their investment after meeting their future bank obligations. We also help sellers analyze whether they can truly afford to sell their businesses and retire. Both buyers and sellers receive help in determining the best strategies to enhance their return by minimizing the tax ramifications of the sale.

Conflict Resolution When a business is transitioned between parties that already have a relatively close relationship to one another (family and/or employees) there are often areas of conflict that develop. At American Business Financial we play the role of the unbiased third party that helps mediate these differences. We ensure that personal and professional relationships are maintained as the transition is completed. We have the tools and experience to mediate both family and employer/employee conflict.

Finance / Banking Developing appropriate relationships with bankers is critical to any business transition's success. Whether you are looking to secure financing for a business acquisition or acquire a loan for present or future improvement of your business, American Business Financial can help you find the right banker and develop a working relationship with them. In addition to working with conventional lenders we also do Small Business Administration loans and work with outside angel investors. We have substantial experience in assisting businesses prepare loan packages and offering circulars for financial institutions and private investors.

Retirement and Estate Planning Along with Retirement Planning, developing an Estate Plan is one of the most important things you can do for yourself and your family. American Business Financial can help you evaluate or develop your own Retirement and/or Estate Plans that will ensure your family's well-being.

In addition to Estate and Retirement Planning, we also help business owners, in conjunction with their own financial planners develop Individual Financial Plans. It is important that the personal goals and ambitions of the business owner are in synch with the direction and capabilities of the business. The coaches at American Business and Financial, Inc. make sure you are on track with both your personal goals and business goals.

Structuring the Transition As a buyer or a seller you will have to consider many potential and varied financial arrangements. You will need to make sure tax consequences are minimized. Goodwill also has to be transferred from seller to buyers, and countless other factors must be considered. American Business Financial is skilled at Structuring the Transition, preparing the plan and timetable that ensures everything that must be done gets done. Without a solid structure, tempers can flare, profits can be lost, successors can be left unprepared, and the whole business can flounder.

Successor Assessment / Development A business owner's successor is the most important factor in the life of a business after a transition. American Business Financial has numerous tools that can assess whether or not a potential successor has the skills necessary to run the business after the succession. We also have the experience and tools necessary to coach and direct the development of potential successors.

American Business Financial offers these and many other services to its clients. Depending on your needs, our coaches can tailor a coaching program that deals with any of these areas. Our coaches are paid by the hour and work directly for you. We can incorporate as many or as few of these elements as you need into your coaching.

If you are experiencing problems in an area not listed here, or if you would like more information on our services in any of these, please contact American Business Financial at 715-832-0503 toll free 1-888-465-4321 or by e-mail at kkoehn@ambfi.com All contacts are kept totally confidential!

The typical players involved in a business transitions include business owners, family, key employees, business brokers, attorneys, accountants, bankers, insurance agents, financial planners and business appraisers.  Each of them has an important role to play.  However, they are often so focused on their individual tasks and interests that they are unable to see the 'big picture,' the business and the transition as a whole. 

Completing a business transition is much like an orchestra performing a symphony.  In most orchestras, the individual members are very proficient on their own instruments.  It takes a conductor though to lead these talented musicians through the performance of a symphony.  It is the job of the conductor to create the 'big picture.'  Just as the conductor leads the orchestra and guides the musicians through the music, we do the same thing for your business transitions.  We help you create your symphony...your exit plan!

American Business & Financial uses several different tools to aid in formulating and implementing exit strategies.  They include:

Business Owner's Situational Analysis--This open ended survey asks all of the pertinent questions that need to be answered in order to determine the best option a business owner has regarding an exit strategy.  The tool is used when business owner(s) are unsure of which options to pursue; passing the business on to family members, selling to employees, selling to a third party, or liquidation.

After completing the analysis, American Business & Financial, Inc.'s coaches will help the owner prioritize potential exit strategies and chart a course of action.  The situational analysis also leads to preliminary discussions regarding the value of the business.

Business Succession Diagnostic Questionnaires--These diagnostics predict the success of failure of a proposed ownership transition by comparing the company in question against a standard of proven 'best practices'.  They are most appropriately used when transitioning the company to family members and/or key employees. 

The diagnostic can be used by the business owner alone as a 'Self Diagnostic', or a '360 Degree Survey' that compares the owner's answers to others around him (spouse, children, key employees, consultants, etc.)  Using the 360 Degree format has the advantage of assuring that all of the key players are on the same page. 

EQ (Entrepreneurial Quotient) Tests--These tests measure the entrepreneurial aptitudes of potential successors.  Often times potential successors (children and/or employees) lack the entrepreneurial spirit and skills required to continue the current owner's success.  It is far better and less costly for both owners and successors to find this out before a transition takes place rather than after.

Personality Profiles--In order to create a more effective team effort, and to establish better communication between owners, potential successors, and key employees, all participants involved in the transaction should participate in a personality profile and share the results with the other members of the transaction team.  The coaches from American Business & Financial, will use the results of these profiles to focus on the teams' strengths and attempt to minimize its weaknesses.

Conflict Style Analysis--An important part of team building is understanding and avoiding conflict.  All transition team members should take the conflict style analysis to better understand their preferred methods of conflict resolution, as well as those of their teammates.  The use of both the personality profile and the conflict style analysis will lead to better communication and teamwork within the business

Business Valuations

In today’s market more than ever, business leaders need independent, professional assistance in valuation services.  American Business and Financial specializes in offer comprehensive business valuations for business owners and attorneys.  With over 15 years in professional business valuation service, our staff is here to assist you with your business valuation needs.

Whether your valuation requirements are for internal planning, buy/sell agreements, strategic mergers, estate planning, or litigation, American Business & Financial can help.

For information on types of appraisals click here

Privacy and Confidentiality Statement

We recognize the extreme importance of confidentiality and privacy in dealing with one's exit strategy.  American Business & Financial, Inc., and its staff, agree to keep all information requests , correspondence, consulting, and/or coaching in total confidence.  During the period of our relationship and upon its termination, American Business & Financial will not release any information pertaining to you or your business without your written instruction.

In situations where American Business & Financial, Inc. may act as your agent with other service providers (banks, accountants, attorneys, business brokers, etc.), we assure you that we will work only with companies that also maintain our high level of confidentiality.  We agree to limit their access to your information to only what is required for them to complete their tasks.

We do not sell nor do we permit any of the companies we work with to sell contact, demographic, or personal information.