How Will You Pay Those Green Fees?

How?                                  Will the transfer be funded

The answer to that depends upon several other factors:

How involved (at risk) to you want to be in the future direction of the enterprise?

Will the transfer be to family members or outside?

Do you have other funds to golf and travel with?

What is the health condition for you and your spouse?

Assuming you want out completely and have positioned the other components of operations in such a way that the new owner will be comfortable releasing you from any contingency, the preparation centers around the requirements for the financial institution that is going to fund the liquidation. This preparation may take several years depending upon your current state of affairs.

Old school bank training – The 3 C’s of Credit:

Character – Show past history of meeting obligations of all kinds

Capacity – Demonstrate capability of the business under a new owner to throw off sufficient   cash flow to service the debt.

Capital or Collateral – Fall back position for lender if the first two C’s do not materialize

Each of these will be covered in following articles.

 

Jim Peters
Peterspective
(317) 372-2304

The instant a private thought is communicated to another in any form, compromises begin to be made in the confidentiality, integrity and availability of the information shared. Yet the appropriate sharing of information is critical to the operation and success of every organization. The purpose of our relationship will be for me to assist with the safeguarding of the information critical to the continuation of your business. My role in our relationship will be similar to that of the sailor in the crow’s nest. I am not there to steer the ship nor am I there to read the compass or do soundings. I am there to keep a watch out for storms or pirates on the horizon and to keep an eye on the distant shore.

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