The economic crisis of recent years has resulted in near-record bankruptcy filings. The impact upon your business when a customer or vendor files a petition for bankruptcy can be devastating. You can alleviate the economic loss, however, by learning about the different types of bankruptcies, the effect of the automatic stay, 341 Meetings of Creditors and avoidance actions. This article will tell you what you need to know.
Given that a company represents a lifetime of work and most of your wealth, the sale of your company is a process worth doing right.
Purchasers will likely be suspicious of transactions that the business has entered into with its owners, directors or managers and their related family members or respective businesses.
Because starting a business is an inherently risky proposition, some entrepreneurs naturally extend that philosophy into other aspects of their lives, including their investment portfolio.
Lenders may request personal or entity guarantees in lieu of or in addition to asset collateral. Be ready to identify possible sources of such guarantees, including founders, company principals and key investors.
I can imagine that many business owners right now fear a call from their bank. But if there’s an elephant in the room, you can bet that everyone sees it.
Owners should have high confidence in their management teams before using the ESOP option as a first transition step out of the business.
Selling to a family member often brings more complexity, both financially and emotionally. It’s important to weigh the benefits of keeping the company in the family vs. selling to an outside party.
The buyer’s ability to successfully integrate the target company into its business can determine a transaction’s long-term success
Recaps have flourished as owners look to exit businesses they’ve built and monetize the value created by years of hard work.