Business Transition Planning

Although the best time to plan for business transition is from the very beginning, most business owners do not have in mind to sell their business when they are in the early stages of growing their business. Surely, the thought of building something from the ground up and then having to close doors and simply walk away is dismal. With the help of Cooper Norman you can avoid this type of negative situation.

Steps of business transition planning include:

• Gather documentation
• Organize financial statements
• Develop a plan of action
• Execute the plan with help from a professional

Business Ownership Disputes

A few examples of business ownership disputes include:

MULTI-GENERATIONAL DISAGREEMENTS

Multi-generational disputes happen often in family owned and operated businesses. Generational issues arise often in relationships of all types, but can be especially difficult to navigate when the older generations typically have seniority in a business, but sometimes have old-fashioned ways of doing things.

Whether you are family or not, handling these types of business-related disputes is best left to the professionals at Cooper Norman. Let us be the mediator that has the best interests of your company in mind– financial and otherwise.

VALUATION AND BUY-OUT DISAGREEMENTS

When, for whatever reason, it comes time to sell a company, it can be difficult to negotiate with one party that is trying to save money and another party that is personally invested and trying to make the most money possible. There is a lot of emotion behind this decision that can occasionally make it difficult to clearly and effectively communicate. However, our accountants can accurately explain to both sides, from an unbiased perspective, how to proceed.

MINORITY AND MAJORITY SHAREHOLDER DISAGREEMENTS

It can be kind of a grey area when it comes to delegating responsibilities and claiming rights as business shareholders. Whether the shareholder is majority or minority, there is still a financial interest in the company. And while it is true that majority shareholders also have decision making power in the company, these disagreements have potential to escalate.

With Cooper Norman to help resolve these types of conflicts, they are less likely to have a huge impact on time and distraction from business as usual. If a dispute hinders operations, it has the potential to affect profitability and growth which is ultimately not what the shareholders want.

Economic Damages

Lost profits are considered economic damages when they are a result of a disruption to regular business operations. In order for a business to seek retribution, there must be a thorough valuation of the business to properly quantify the damages. In general, the easiest way to do this is to find out how much money the business would have made if nothing had interfered. The professionals at Cooper Norman can review the income and expense forms to reach an accurate figure that can also stand up in court if necessary.

A few examples of economic damages are:

• Cost of repairing damaged property
• Loss of business (like many experienced with the Coronavirus pandemic)
• Unsatisfactory performance of goods
• Loss of income due to unforeseen circumstances (e.g. your business floods and has to close for a time)

Merger & Acquisition

While these terms are often used interchangeably, they have two different meanings. You could probably guess that merger means merging two companies together. Typically during this process you combine two firms and make one new entity under an entirely different name. An acquisition is when one company is outrightly  purchased by another. Having Cooper Norman on your side allows for a smoother transition, more bids and therefore a higher selling price in the long run.

Buy/Sell Due Diligence

Due diligence is the process of investigating the finances of a business in preparation to sell. Outside advisers are recommended for this process so that potential buyers feel confident in an unbiased due diligence process. In addition, this process can be extremely time consuming if you are still trying to manage a business simultaneously.

This process is meant to reveal any pain points in the company that future buyers might need to be aware of. On the other hand, this process should also highlight the strengths of the company and make it look appealing to buyers. Going over these topics with a professional allows you as a business owner to prepare for any questions a future buyer may have.

Why you should Choose Cooper Norman for Business Valuation

Cooper Norman is a trusted name in Idaho. We have been around for more than 60 years, and have worked hard to build a name we are proud of. We are confident in our ability to serve you and your business. Cooper Norman employs a wide variety of people with different specialties. We are confident we can find a professional that can help meet your specific needs. Our business valuation team has the tools to help you through all of your business needs and transitions.