Articles and Data Relating to Your Business and Coronavirus

Articles and Data Relating to Your Business and Coronavirus

Harvest Business Advisors have created this collection of current articles that may be of interest to sellers, buyers, business owners and advisors relating to Coronavirus, industry and the economy.

We are always available to discuss how this might impact you, those close to you, and your business.

We hope you find these helpful.


Clients choose Harvest Business Advisors for our accurate business valuations and our consistent ability to deliver a high price as part of a smooth exit transaction.
Harvest Business Advisors provides business brokerage, business valuation, and business succession planning services. We have extensive experience in the information technology and professional services, manufacturing, distribution, and contracting fields. We maintain offices in Maryland, New Jersey and Virginia.
Connect with us at info@harvestbusiness.com or 877-838-4966 to discuss selling your business, ordering a business valuation or buying a business.

The Importance of Time Off – for You and Your Business

The Importance of Time Off – for You and Your Business

It’s mid-August and we have a question.

Did you take any time off this summer?

Did you step away from your business and not call or email in?

Many business owners would say “That’s impossible!”

But why? Research shows that real unplugged vacations are critical to people’s health  – allowing  you to return restored, refreshed, renewed. And ready to dive back in to running and improving your business.

As Andrea Callahan says in this Money article, “Vacations sharpen the sword”.

From a purely practical perspective, a business that runs on its own is far more valuable and easier to sell than one that demands every minute of an owner’s life.

Plus you’ll enjoy your business more if you step away from time to time.

How can you change your business so you can take time off?

Start small – take the afternoon off and do something for yourself or with your family. Promise yourself won’t check email after 6 p.m. (or before 7 a.m.) Ease into a long weekend – and truly “get-away”.

Identify tasks or processes that only you can do – and train someone else to take them on, while documenting the training. Distribute responsibility to those you trust. Look into automation for some tasks.

Soon, taking two weeks off for a dream vacation won’t be impossible. It will be do-able- and your business will be stronger because of your efforts.

Are you ready for a real vacation? Or maybe you are ready to sell your business for a permanent vacation!

We can help you plan and start the process. Connect with us (info@harvestbusiness.com or call 877-838-4966) today for a complimentary consultation.


Clients choose Harvest Business Advisors for our sage advice on profitably growing their business, accurate business valuations, and when the time is right, a consistent ability to deliver a high price as part of a smooth exit transaction.

Harvest Business Advisors provides business brokerage, business valuation, and business succession planning services. We have extensive experience in the information technology and professional services, manufacturing, distribution, and contracting fields. We maintain offices in Maryland, New Jersey and Virginia. Connect with us at info@harvestbusiness.com or 877-838-4966 to discuss selling your business, ordering a business valuation or buying a business.

Business Owner Succession Plans Should Consider ESOP’s

Business Owner Succession Plans Should Consider ESOP’s

ESOPs or Employee Stock Ownership Plans should be considered as a succession tool by business owners.

When business owners first start to consider the possibility of retiring or transitioning away from day to day operations, many look around them to see who might be a potential buyer. A family member or a friendly competitor or an allied business frequently often come to mind. But perhaps owners should consider their employees as potential buyers.

An ESOP is an Employee Stock Ownership Plan. In the right circumstances,  ESOPs can be a great succession planning tool.  ESOP’s receive extremely favorable tax treatment.  But they are not suitable for every situation and can be somewhat complex and costly.

They often work well if an owner wants to stay involved but obtain asset diversity by selling perhaps 1/3 of the business.  There are strong tax advantages.  When set up properly both the loan principal and interest is deductible for tax purposes.  Note, usually only loan interest is deductible for tax purposes.  This is a huge advantage.

An ESOP may be set up with existing cash from the plan sponsor’s balance sheet but are usually leveraged.

  • The loan may be from a bank or other financial institution or the selling shareholder may finance the transaction by taking back a note for part or all of the purchase price
  • The plan sponsor usually uses its balance sheet to secure the debt financing
  • Often the owner must guarantee to loan to the business.  Sometimes this guarantee can be limited in time and amount.

The ESOP borrows the money to purchase company stock (outstanding shares, new shares, or treasury shares) which is held in trust for the benefit of the employees.

  • The company makes tax-deductible contributions to the ESOP to enable the ESOP to repay the loan
  • As the loan is repaid, shares held by the ESOP are released and allocated to employee accounts
  • The employee shares are held in trust.

More information about ESOP options can be found at National Center for Employee Ownership or connect with Harvest Business Advisors to discuss your options – email info@harvestbusinessadvisors.com or call 877-838-4966.

 


Clients choose Harvest Business Advisors for our accurate business valuations and our consistent ability to deliver a high price as part of a smooth exit transaction.
Harvest Business Advisors provides business brokerage, business valuation, and business succession planning services. We have extensive experience in the information technology and professional services, manufacturing, distribution, and contracting fields. We maintain offices in Maryland, New Jersey and Virginia. Connect with us at info@harvestbusiness.com or 877-838-4966 to discuss selling your business, ordering a business valuation or buying a business.

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