Segment 11(17) – Exiting (Now or later?) - Georgia LEARNS2024-03-29T05:45:26Zhttp://georgialearnsnow.ning.com/forum/topics/segment-11-17-exiting-now-or-later?commentId=6555741%3AComment%3A11604&x=1&feed=yes&xn_auth=noScott - thank you - this "dow…tag:georgialearnsnow.ning.com,2017-11-07:6555741:Comment:116042017-11-07T21:22:33.807ZPaul Terlemezianhttp://georgialearnsnow.ning.com/profile/34skzl1mtlumh
<p>Scott - thank you - this "down to earth" ethical advice is appreciated.</p>
<p>Scott - thank you - this "down to earth" ethical advice is appreciated.</p> That makes it very tough but…tag:georgialearnsnow.ning.com,2017-11-07:6555741:Comment:116032017-11-07T16:55:27.987ZScott Willifordhttp://georgialearnsnow.ning.com/profile/ScottWilliford
<p>That makes it very tough but not impossible. It's not just about numbers but I would use my "owners benefit" - compensation, dividends, perks - to determine the a discounted value for my minority interest in the company. To get the appropriate multiplier, look at similar size organizations and any transactions you may find to set a bench mark. Since it is a minority interest, you'll have to discount it. </p>
<p>Transparency is key in every relationship. I would approach my co-founder…</p>
<p>That makes it very tough but not impossible. It's not just about numbers but I would use my "owners benefit" - compensation, dividends, perks - to determine the a discounted value for my minority interest in the company. To get the appropriate multiplier, look at similar size organizations and any transactions you may find to set a bench mark. Since it is a minority interest, you'll have to discount it. </p>
<p>Transparency is key in every relationship. I would approach my co-founder with my desire to retire. See how they feel about it. Part of this process would be taking an inventory of your contributions as a founder and in your current role in the company. You want to consider what happens to the business if you retire.</p>
<p>Also, keep in mind, retiring doesn't mean you have to sell, you could continue you collect passive income from dividends until a different liquidity event take place.</p> Scott - thank you - in this c…tag:georgialearnsnow.ning.com,2017-11-06:6555741:Comment:117082017-11-06T18:07:26.938ZPaul Terlemezianhttp://georgialearnsnow.ning.com/profile/34skzl1mtlumh
<p>Scott - thank you - in this case the buy sell agreement is not in place.</p>
<p>Scott - thank you - in this case the buy sell agreement is not in place.</p> Hopefully a buy sell agreemen…tag:georgialearnsnow.ning.com,2017-11-06:6555741:Comment:117012017-11-06T12:27:43.986ZScott Willifordhttp://georgialearnsnow.ning.com/profile/ScottWilliford
<p>Hopefully a buy sell agreement is already in place. The best way to protect all the parties (personally and financially) is to know going in how one might exit. A good buy sell agreement would establish valuation, sell process, and exit scenarios.</p>
<p>Hopefully a buy sell agreement is already in place. The best way to protect all the parties (personally and financially) is to know going in how one might exit. A good buy sell agreement would establish valuation, sell process, and exit scenarios.</p> I spoke with a close friend t…tag:georgialearnsnow.ning.com,2017-10-25:6555741:Comment:112252017-10-25T17:38:26.054ZPaul Terlemezianhttp://georgialearnsnow.ning.com/profile/34skzl1mtlumh
<p>I spoke with a close friend today and was asked to post the following:</p>
<p>"Question: “I am co-founder of a well-established training firm (less than 50% ownership), and am planning an exit strategy to retire. There is no board of directors other than myself and the co-owner. How do we protect our interest in achieving an equitable outcome without damaging our personal relationship?</p>
<p>I spoke with a close friend today and was asked to post the following:</p>
<p>"Question: “I am co-founder of a well-established training firm (less than 50% ownership), and am planning an exit strategy to retire. There is no board of directors other than myself and the co-owner. How do we protect our interest in achieving an equitable outcome without damaging our personal relationship?</p>