INBETS Business Tran ...

1. Align Family Goals
   A successful transfer involves understanding each generation’s goals.
2. Evaluate the Senior Generation’s Liquidity Needs
   An evaluation of the senior generation’s future income needs should be conducted prior to structuring the transition
3. Analyze the Company’s Finances
   The business’s historical financial performance provides insight into what the company can handle in terms of a transaction as well as a range of values for the parties to consider a transaction.
4. Evaluate Transfer Methods
   Here we evaluate which path(s) to pursue in the ownership transition.
5. Evaluate and Analyze the Tax Structure
   The transfer methods will dictate the tax consequences to the senior generation, the next generation, and the company all need to be evaluated.
6. Develop a Buy-Sell Agreement
   In situations where the business will transfer to more than one owner, developing a buy-sell agreement is of great importance.

Access cases regarding business transfer model 1 here.

1. Discuss the terms of the transfer of ownership
   Clarify the expectations on both sides: the external entrepreneur and the owner.
2. Consulting experts
   Do financial diagnostic and establish the company’s value, review tax strategies.
3. Choosing from the available solutions
   Review the various scenarios with a team of experts and make a choice, do a financing negotiation
4. Approval and implementation
   Make diligence review, put up required structures in place, finalize financing.

Access cases regarding business transfer model 2 here.

1. Clarify the expectations on both sides
   Make sure that everyone’s intentions are clearly understood.
2. Draw up an action plan for the company
   A strategic action plan will allow you to take stock of the current position of the company, to identify corrective measures to apply immediately, to outline the key elements of company’s future orientation and to determine what action to take to achieve fixed objectives.
3. Evaluate the abilities of the company executives /management team
   The strategic planning exercise will allow you, among other things, to determine the human resource needs of management.
4. Establish a training plan for the successors
   A training plan in due form for each member of the management team is a very useful undertaking.
5. Be aware of the issues related to the transfer of management
   You must also consider the consequences of failure in your attempt to transfer the company to management. You should not forget the members of your family.
6. Do not hesitate to call on experts who can provide assistance
   Becoming involved in the process of a transfer to management is demanding. Think about a consultant specialized in strategic planning or the help of a consultant specialized in human resource management

Access cases regarding business transfer model 3 here.

1. Deciding to move forward
   Research and reading, worker ownership succession options workshop (for owner and their leadership team), initial owner conversation with employees
2. Getting ready: employee training and business valuation
   Financial training for employees, business and industry training, cooperative trainings for employees, business valuation process, business valuation or owner’s price, determine financing options, review and revise current business plan
3. Defining structures
   Document current management plan, draft cooperative by-laws, define post-transition management
4. Finalize the transition
   Transfer business ownership, negotiate final price, seek financing, future members approve final price and financing, structure, complete the transaction, transfer governance and elect new board, transfer management as necessary.
5. Follow through and monitoring
   Possible ongoing training with current employees

Access cases regarding business transfer model 5 here.

1. Retain key employees.
2. Minimize business interruption and disruption.
3. Maximize enterprise sale value.
4. Minimize tax obligations.
5. Include contingency plans for unexpected life circumstances and business changes.
6. Ensure the business operates as if a sale will not occur.