Tuesday, June 26, 2012

What to Plan for in a Buy Sell Agreement to Prevent Loss of Business & Litigation.

The Kensington Company & Affiliates would like to thank Jeanne Brutman, LUTCF, CBFS, CFS for submitting this informative article.
 
What to Plan for in a Buy Sell Agreement to Prevent Loss of Business & Litigation.

The Goal:  Transfer of Business shares in a life event to those who wish to keep the business and cash to those that need to be bought out due to the following circumstances:

  • Death:  The premature passing of a shareholder.  Usually Funded with Life Buyout Insurance, assuming all involved are insurable.
  • Disability:  The Unplanned accident or illness of shareholder.  Usually Funded with Disability Buyout Insurance, assuming all involved are insurable.
  • Divorce:  Prevention of spouse of shareholder from causing undue stress on other business partners during separation or divorce proceedings.
  • Discontent:  The inability of partners to co-exist in one corporation for any reason not related to legal or ethical violations.
  • Marriage:  Prevention of future spouses of shareholders from making claim to partial ownership of business in future.
  • Retirement:  The ability for any shareholder to leave at agreed upon time amicably.  Usually funded through combination of cash value life insurance, corporate retirement plans and possibly installment payments from Annuity products or ongoing business revenue (least practical).
  • Felony:  The removal of shareholder that has legally or ethically endangered the company through their inappropriate actions. 

It is usually recommended to go through some level of third party business evaluation of  your business (not done by your cpa) every two to three years to substantiate the value of the business for IRS taxation purposes.   Business valuation can be done from 3 different perspectives. sale of business to outside parties, estimation of estate taxes or internal buy sell agreement. This should be done as soon as possible to get a base line of the business value as it hits profitability.  Flat value amounts can be used, but run the risk of out-dating rapidly and increased scrutiny from the IRS upon business transfer.  Business valuation formula’s are more useful, but also have to be reviewed and possibly revised as the business changes structure over time.  As mentioned above ,it is considered in good form to review the entire buy sell agreement and it’s formula’s or stated business value every 2-3 years, but. if the business is expanding or shrinking more rapidly, perhaps more often is advisable.

Wednesday, June 13, 2012

Lunch and Learn June 19th


















 
Free Lunch and Learn 
with a Leading National Franchise Company
and their Local Franchise Owners

Next Tuesday, June 19th, 1pm
The Olive Garden,Old Country Road, Westbury, NY


If you are looking for business ownership and want a business that offers
fast ramp up, a proven track record and big earning potential. This event is for you!
....and in house franchisor financing.

Learn about a franchise that has been ranked by
Entrepreneur Magazine as #1 in their category for 15 straight years.

(also featured at this Lunch and Learn will be a Franchise Resale for Budget Blinds Netting Approximately 125K and only asking $150K)
A Few Reasons to Learn More about Budget Blinds

  • Low Investment Cost, Under $100K Total Investment  
  • Very Fast Ramp Up and Big Earning Potential
  • Franchisor Financing Available
  • Few Employees
  • Home Based, No Inventory, Low Overhead
  • Flexible Schedule - Make your own Schedule
  • $8 Million Spent Annually on Marketing - in the top 10% of all franchisors.
  • Average Gross Profit = 53%
  • 75% of their franchisees are Men with NO Design or Decor Experience
  • Named the #1 BEST Franchise in their Category for the past 15 Years by Entrepreneur Magazine
  • #1 for 3 years in a row, Franchisee Satisfaction, by Franchise Business Review - AMAZING FRANCHISEE VALIDATION - HAPPY OWNERS, MAKING MONEY
  • Ranked in the top 70 of ALL Franchises by Entrepreneur Magazine
  • Un-paralleled Training and Support
  • Strong Vendor Relationships and Purchasing Power
  • FREE LUNCH
If you are looking for a low cost, home based business, that offers complete freedom and flexibility and can cash flows positive in a very short period of time, join us for this Free Lunch and Learn. Most of their franchisees are men with no previous design or decor experience that moved forward with Budget Blinds because of their AMAZING business model with strong earning potential. If you are looking for a business and are on a tight budget, want great support, need quick ramp up and cash flow, then you should invest an hour with us for a free lunch and learn. Don't take our word, meet with local franchisees and speak with 100's of others as you validate and learn about this great franchise opportunity.

Furthermore, they will also fly you out to California to see their corporate offices and put you up for 2 nights to meet their team and view their operations.

Call or email with questions.