Prioritizing client education to empower decision makers throughout their transaction

As COVID-19 continues to upend any sense of routine, the phrase ‘business as usual’ no longer makes sense. Business owners and executives are being forced to adapt daily to a changing economic and health environment.

There is no doubt that we have quickly moved from a period of stability and growth to one of economic uncertainty and retrenchment as a result of COVID-19. The economy is heading toward a recession, if it is not in one already.

We get the same question from every prospective client. The question is not surprising given the sale of your company is typically a once in a lifetime event.  It stands to reason; you will want to understand your financial commitment before you undertake such a big step.

Business owners thinking about selling their company almost always have the same two questions:

1. How much is my business worth?
2. Can I trust the firm that I use to help me sell my business?

That is why PCE provides a free business valuation before engaging with clients. The valuation enables you to be better informed when making critical decisions and helps you determine if now is the right time to sell. A preliminary business valuation ensures alignment on value expectations before you consider your exit strategy. The valuation also showcases how we operate at PCE. This is the first opportunity to demonstrate the value of our experience and knowledge and is the best way for you to decide if we’re right for your company. You can expect a reasoned fee proposal based on a realistic estimate of valuation.

Flexibility is the star attribute of a well-designed ESOP (employee stock ownership plan). Your ability to establish what percentage of the company you sell to the ESOP is just one reason ESOPs are so appealing. Whether you are currently exploring an ESOP as a succession strategy or your company is partially owned by an ESOP, understanding how to determine the optimal ownership level is key to achieving your individual and company goals. This article will examine how to choose between a partial and a 100% ESOP, how to decided when and if to increase the ESOPs ownership stake in the company, as well as several issues the company and its shareholders must consider for immediate and long-term ESOP success. 

Humans are wired to take the path of least resistance. It’s not that we’re lazy; we just don’t want to do more work than is necessary to get results.

That’s why private company executives were happy to see the passage of ASU 2014-02 Intangibles – Goodwill and Other, which allows private companies to elect an accounting alternative to the traditional GAAP (generally accepted accounting principles) standards pertaining to goodwill. The accounting alternative greatly simplifies accounting for goodwill – and typically lowers the cost as well.

The short answer is no. But it’s really not so simple. You might be running low on time, because there’s a recession coming. It’s just a question of when and how bad. As a business owner, you need to decide what your goal is: sell later, at a potentially higher valuation, or sell sooner and take what you can get for certain. Holding out for a higher price may mean waiting four or five years.

If you’re thinking about moving your company to the next level, you may be considering a partnership with a private equity (PE) firm to strengthen your business. But how do you determine which firm is the best match for your company — the firm that will enable you to achieve your strategic and financial goals? Although the process of finding the ideal partner can be challenging, knowing what to look for will help narrow your search considerably.

The M&A market is defined by many types of buyers, but consolidators have been the most publicized. Beyond the public markets and headlines, similar behavior is taking place among privately held companies.

Employee Stock Ownership Plans (ESOPs) provide significant benefits to business owners, and as a result, the ESOP liquidity strategy has become increasingly popular. This strategy, however, is not without complications, so you must understand the ESOP transaction and implementation processes before you decide to implement an ESOP at your company.