Is Your Business Ready for the Unthinkable?

unthinkable

Are you ready for the unthinkable? Is your business protected from the four D’s?
     -> Death?
     -> Disability?
     -> Dispute?
     -> Divorce?
I reviewed my last five business valuation engagements. Four had no buy-sell agreement. The one was so poorly constructed and outdated, it would likely do as much harm as good. This is an uncomfortable topic for many owners, and I’m about to make it more uncomfortable.

Reality Check
Taking risks may be the reason you have a profitable business. You’re more aggressive and competitive than others but here’s the reality – you will die. Denying it puts your loved ones in an even more miserable place than they could be with your help while you’re topside. Don’t let your “edge” override common sense. 

Why Does this Matter?
When owners die without a plan, I’ve seen the business sit in limbo, get stuck with surviving spouse and child “partners”, and flat-out die itself. Fights are common when livelihoods are at stake and emotions tend to take over. It may not matter that Joe or Sally thinks the business is worth 5X what it’s really worth. You never bothered to get a buy-sell agreement and an annual business valuation. In a court of law where the best negotiator often wins, their off-the-wall opinion may carry the day to the detriment of your family. 

What about the other Three D’s?
If you manage to be the first business owner to dodge death, you’re still not out of the woods. What if you get hurt…physically…mentally? Will you be able to run the business in a disabled state? Unlikely. How’s your relationship with your partner? Hot and cold? What if they turn to you out of the blue and say, “I want out!” How’s your marriage or your business partner’s marriage? If things get bad, what agreement do you have that will clarify your options, and the value of your business? Are you prepared for requests from attorneys to take over your day? Where’s that put your business? 

What’s the Fix?
Imagine the grim reaper came to visit you today…with one twist. He said, “I’m going to give you until the end of the week to get your business ready for your permanent departure. If you care about your family, co-owners, and employees, fix it now and I won’t come back. If you don’t, you’ll be coming with me next week.”

This is how we should treat every day anyway. If you knew you only had one week to protect your family and build your legacy, what would you do today? Give me a call if you have questions about protecting your business with a buy-sell agreement. I’m happy to recommend attorneys who can help and give advice on pitfalls. Don’t wait another day. 

Thanks,
Josh

Sign up for this blog here if you want tools to increase the value of your business or want a refreshing view on business valuation from a recovering CPA. I’m Josh Horn, CPA, CVA of Horn Valuation. I value businesses for owner exits with a focus on HVAC and trade contractors. I also assist litigation and divorce attorneys as a business valuation consulting or testifying expert. My clients are business owners and attorneys. If you’d like more information, email me at [email protected], or call me at 217-649-8794.

I’m a licensed Certified Public Accountant (CPA) and credentialed in business valuation (CVA). I’ve been a tax and business consultant in a top 100 CPA firm and a controller in a large international company. I’ve also valued and advised small family-owned and multimillion-dollar companies. You can connect with me here on LinkedInFacebookTwitter, YouTube and Instagram.

“Once-in-a-lifetime events demand an expert.”
 Josh Horn, CPA and Certified Valuation Analyst

Imagine Value as a Journey instead of a Destination

imagine

Imagine if everyone woke up tomorrow and decided business value was something to be achieved over time instead of ordered like fast food. What would this mean?

Better relationships with co-owners and employees
We’d recognize that our failure to empathize with others is holding us back. Without empathy, we’ll never get the cooperation we must have. With everyone rowing in the same direction, there’s no limit to what can be achieved. And this would mean…

Better documentation of processes
Once our hearts and minds are opened to the pain of others, we would be sure to document core processes. We wouldn’t do it to put it on the shelf. We’d do it intentionally and adjust it along the way, cross-training others to help. And this would mean…

No “single point of failure”
Nearly every private business in America is one lost person away from oblivion. It’s our nature to procrastinate. “That only happens to those types of businesses” we say. And then it happens to us when we’re least ready. We’d start to become keenly aware this means…

People are the most important asset
We’d stop looking for the latest marketing or tax gimmick and realize no one “shiny object” will save our business let alone drive its value to unimaginable heights. We’ve all seen what one good person can do for our business. We’ve also seen what one bad person can do too. And this would mean…

Culture above everything
Culture is the hardest thing to change in a business. It’s also the most powerful force a business has when it’s working. It’s like a secret weapon. We know what good culture looks like. Southwest Airlines. Disney. What about yours? Does it make you burst with pride or cringe? You can change it starting now. It will take time. The first step is to decide what you want your culture to look like and being unwavering in your resolve to get there. 

Value is a journey not a destination. Are you ready to start the trip? 

Thanks,
Josh

Sign up for this blog here if you want tools to increase the value of your business or want a refreshing view on business valuation from a recovering CPA. I’m Josh Horn, CPA, CVA of Horn Valuation. I value businesses for owner exits with a focus on HVAC and trade contractors. I also assist litigation and divorce attorneys as a business valuation consulting or testifying expert. My clients are business owners and attorneys. If you’d like more information, email me at [email protected], or call me at 217-649-8794.

I’m a licensed Certified Public Accountant (CPA) and credentialed in business valuation (CVA). I’ve been a tax and business consultant in a top 100 CPA firm and a controller in a large international company. I’ve also valued and advised small family-owned and multimillion-dollar companies. You can connect with me here on LinkedInFacebookTwitter, YouTube and Instagram.

“Once-in-a-lifetime events demand an expert.”
 Josh Horn, CPA and Certified Valuation Analyst

Creative Ways to Solve a Business Dispute

dispute

You may be involved in a dispute over your business with a limited budget. What can you do? Here are a couple ideas to solve this problem by being creative. Three minutes. Secure link here…or YouTube here:

Thanks,
Josh

Sign up for this blog here if you want tools to increase the value of your business or want a refreshing view on business valuation from a recovering CPA. I’m Josh Horn, CPA, CVA of Horn Valuation. I value businesses for owner exits with a focus on HVAC and trade contractors. I also assist litigation and divorce attorneys as a business valuation consulting or testifying expert. My clients are business owners and attorneys. If you’d like more information, email me at [email protected], or call me at 217-649-8794.

I’m a licensed Certified Public Accountant (CPA) and credentialed in business valuation (CVA). I’ve been a tax and business consultant in a top 100 CPA firm and a controller in a large international company. I’ve also valued and advised small family-owned and multimillion-dollar companies. You can connect with me here on LinkedInFacebookTwitter, YouTube and Instagram.

“Once-in-a-lifetime events demand an expert.”
 Josh Horn, CPA and Certified Valuation Analyst

The Problems I Find Valuing Businesses Should Scare You

scare

I see a lot of the same things that scare me again and again on businesses I value. Here’s a 4 minute video to help you find and fix these. Secure link here…or YouTube here:

Thanks,
Josh

Sign up for this blog here if you want tools to increase the value of your business or want a refreshing view on business valuation from a recovering CPA. I’m Josh Horn, CPA, CVA of Horn Valuation. I value businesses for owner exits with a focus on HVAC and trade contractors. I also assist litigation and divorce attorneys as a business valuation consulting or testifying expert. My clients are business owners and attorneys. If you’d like more information, email me at [email protected], or call me at 217-649-8794.

I’m a licensed Certified Public Accountant (CPA) and credentialed in business valuation (CVA). I’ve been a tax and business consultant in a top 100 CPA firm and a controller in a large international company. I’ve also valued and advised small family-owned and multimillion-dollar companies. You can connect with me here on LinkedInFacebookTwitter, YouTube and Instagram.

“Once-in-a-lifetime events demand an expert.”
 Josh Horn, CPA and Certified Valuation Analyst

This Kills More Businesses Than Anything. Let’s Fix This

kills

Here’s a 5 minute video to help you avoid what kills most businesses. Secure link here …or YouTube here:

Thanks,
Josh 

Sign up for this blog here if you want tools to increase the value of your business or want a refreshing view on business valuation from a recovering CPA. I’m Josh Horn, CPA, CVA of Horn Valuation. I value businesses for owner exits with a focus on HVAC and trade contractors. I also assist litigation and divorce attorneys as a business valuation consulting or testifying expert. My clients are business owners and attorneys. If you’d like more information, email me at [email protected], or call me at 217-649-8794.

I’m a licensed Certified Public Accountant (CPA) and credentialed in business valuation (CVA). I’ve been a tax and business consultant in a top 100 CPA firm and a controller in a large international company. I’ve also valued and advised small family-owned and multimillion-dollar companies. You can connect with me here on LinkedInFacebookTwitter, YouTube and Instagram.

“Once-in-a-lifetime events demand an expert.”  Josh Horn, CPA and Certified Valuation Analyst