Industry Consolidation ~ Generational Equity

Financial Market Conditions
In a broader sense, with historically low interest rates and low
capital gains rates, current financial market conditions has created
one of the best environments for owners to consider selling.

Generational Equity

Capital Asset Pricing Model (CAPM)
One
of the criticisms of the CAPM method is that beta is derived from the
volatility of prices of publicly-traded companies, which are likely to
differ from private companies in their capital structures,
diversification of products and markets, access to credit markets,
size, management depth, and many other respects. Where private
companies can be shown to be sufficiently similar to public companies,
however, the CAPM method may be appropriate.
Legal Matters

I don’t generally recommend trying to save money on legal processes.
Lawyers and other legal professionals don’t just fill out forms for
you; they also provide valuable advice and can point out legal
implications that you are not aware of. But for those who do want to it
themselves, these articles lay out the procedures that you need to
follow:

* Trademark Registration in Canada
* How to Incorporate Your Business in Canada

Tips to keeping a productive workforce when stress is up

For some time, I have been complaining about corporate addiction to
Hamburger Management: the myopic, short-term obsession with supposed
increased efficiency and cutting costs as the sole route to higher
performance.

Not only is such an approach uncivilized and, all too often, prone to
leading managers into unethical actions, it is also very likely to
produce more problems over the longer term that it solves. Generational Equity

Creating a Business Exit Strategy

Once you understand the four D’s, include the following actions in the creation of your business exit strategy:

- consider incorporating your small business to legally recognize yourself and your business as separate entities

- find a method of determining the value of the corporation that can be
done at least annually and will qualify under IRS standards

- develop an employee benefit plan that will assist with the departure
of each partner in case of death, disability, or retirement

- plan for who retains company ownership and who gets paid off

The ability to perform well under pressure…i.e. when it’s “Big Stuff” –
Resilient people handle pressure well. They don’t become testy or
sharp-tongued in difficult situations. They don’t come unglued when
confronted by difficult situations or high pressure. Resilient people
are the ones you can count on to come through when the stakes are high.
Generational Equity

Prospecting the Buyer

Potential buyers should be screened to ensure that their interests are
compatible with yours and that they have the financial ability to
purchase your business. Early in the selling process, you should
determine the buyers' sources of funds. Determining and dispelling any
misconceptions on financing prior to negotiating the deal saves both
parties time and money. You may want to suggest that the buyer consult
with their accountant or financial advisor.

Generational Equity