The contents of this chapter include all of the following: Personal reasons for selling, business reasons for selling, valuing the company, determining best candidates , tax considerations, selling to employees or managers, transferring to family members, IPO’s, running the business while selling. | Copyright 2015 Jack M. Kaplan & Anthony C. Warren Patterns of Entrepreneurship Management 5th Edition,Chapter 11 Chapter 11 Reasons for Selling Valuation and Candidates Running and Selling a Business Intra-family sale Exiting the Venture ESOP’s and MBO’s Financial Issues Copyright 2015 Jack M. Kaplan & Anthony C. Warren Presentation Outline Personal Reasons for Selling Business Reasons for Selling Valuing the Company Determining Best Candidates Tax Considerations Selling to Employees or Managers Transferring to Family Members IPO’s Running the Business while Selling Chapter 11 Reasons for Selling Valuation and Candidates Running and Selling a Business Intra-family sale ESOP’s and MBO’s Financial Issues Copyright 2015 Jack M. Kaplan & Anthony C. Warren Personal Reasons for Selling Investors are demanding a LIQUIDITY event Entrepreneur wishes to cash-in part or all of their ownership Disagreements between shareholders Acceptable Unsolicited Offer Business - Burn Out Personal Event . | Copyright 2015 Jack M. Kaplan & Anthony C. Warren Patterns of Entrepreneurship Management 5th Edition,Chapter 11 Chapter 11 Reasons for Selling Valuation and Candidates Running and Selling a Business Intra-family sale Exiting the Venture ESOP’s and MBO’s Financial Issues Copyright 2015 Jack M. Kaplan & Anthony C. Warren Presentation Outline Personal Reasons for Selling Business Reasons for Selling Valuing the Company Determining Best Candidates Tax Considerations Selling to Employees or Managers Transferring to Family Members IPO’s Running the Business while Selling Chapter 11 Reasons for Selling Valuation and Candidates Running and Selling a Business Intra-family sale ESOP’s and MBO’s Financial Issues Copyright 2015 Jack M. Kaplan & Anthony C. Warren Personal Reasons for Selling Investors are demanding a LIQUIDITY event Entrepreneur wishes to cash-in part or all of their ownership Disagreements between shareholders Acceptable Unsolicited Offer Business - Burn Out Personal Event Poor Health Retirement Planning Chapter 11 Reasons for Selling Valuation and Candidates Running and Selling a Business Intra-family sale ESOP’s and MBO’s Financial Issues Copyright 2015 Jack M. Kaplan & Anthony C. Warren Be Clear Why You are Selling Strategic Reasons Growth Exceeded Management Capabilities Diversify Personal Net Worth Other Interests Getting Older - Illness - Divorce Owner Disagreements Investors Desire to Liquidate Chapter 11 Reasons for Selling Valuation and Candidates Running and Selling a Business Intra-family sale ESOP’s and MBO’s Financial Issues Copyright 2015 Jack M. Kaplan & Anthony C. Warren Business Reasons for Selling Business Requires Significant Capital for Growth New Competition Appearing Limited Opportunity for Growth Close to Bankruptcy Market Condition Forecasts are Unattractive Consolidation is Occurring in the Sector Chapter 11 Reasons for Selling Valuation and Candidates Running and Selling a Business Intra-family sale ESOP’s and MBO’s .
