Thu, 1 April 2021
Hello, this is Hall T. Martin with the Startup Funding Espresso -- your daily shot of startup funding and investing.
There are several ways to exit a business.
You can sell the business to another company or investor.
This provides liquidity to the owners.
The downside is, it’s not clear what happens to the employees and the direction of the company.
You can develop an employee stock ownership plan.
This transfers ownership to the employees and brings tax benefits plus rewarding the employees who now have control.
The downside is that the valuation will most likely be lower than an outright sale.
You can use a management buyout. This provides liquidity to the owners.
The downside is the process can take some time to complete, even years.
You can transfer the business to a family member.
This provides the family member an income and potentially a career.
The downside is there are estate tax consequences that must be considered.
In exiting your business, consider the impact not only on yourself, but also on the employees, customers, and others associated with the business.
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Thu, 1 April 2021
This is Investor Perspectives, I’m the host of Investor Connect, Hall T Martin, where we connect startups and investors for funding.
In our new Investor Perspectives series entitled “How to Solve the Fintech Problem”, you’ll hear about changes expected in the coming 12 months and our guests’ final thoughts.
As the COVID pandemic passes, we emerge into a new world. The fintech space is now undergoing tremendous change across the U.S. Every business is now a fintech business. We have investors and startup founders describe the shift from a centralized to a decentralized fintech market.
Direct download: Show_4_-_Changes_Expected_in_the_Coming_12_Months.mp3
Category:general -- posted at: 6:00am CDT