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How to sell a company

Business owners in Louisiana may decide one day that they would like to sell their companies. However, it can be difficult to determine exactly how much a business is worth or what steps need to be taken to get it ready to sell. A buyer will typically consider how much money an organization makes when determining an offer price. Buyers will also consider the types of tangible assets that a company has when determining how to structure its offer.

Intangible assets such as patents, copyrights or strong brand recognition will also factor into how much a company is worth. Ideally, business owners will list their companies for sale online as opposed to in a newspaper. This is because interested parties are more likely to see the listing on a website as opposed to in a physical publication. Those who are interested in selling their companies can use a broker to help facilitate the transaction.

Tips for avoiding estate tax and protecting assets

There are a number of ways people in Louisiana can structure their estate to protect assets from a divorce. Parents may want to place assets intended for their children in a revocable trust with a protector. The child can be named as the trustee, but the protector takes over if there is a lawsuit or other issues that could cause the assets to be seized.

This type of trust can also protect a child's inheritance from a stepparent in case one parent dies and the other remarries. However, there are other types of trust that can also protect assets to varying degrees. The irrevocable asset protection trust puts the control of assets in the hands of an outside trustee and may also include a protector. Couples who want more control over their assets may opt for a spousal lifetime access trust which offers fewer protections but does take the assets out of the estate so they are not subject to estate or gift taxes. While the estate tax exemption is currently around $11 million, it is scheduled to drop in 2026 and could be changed again at a later date.

Who should you trust as your power of attorney?

When you're choosing someone to take on the role of your power of attorney, it's important that you choose the right person. You may even want to choose two or three people whom you believe could suit the role, so that one could step down and leave the task to another person if they don't feel they can handle it.

When you choose your power of attorney, you want to choose someone you trust. There are more factors to consider on top of this. Some things to keep in mind while selecting a power of attorney include choosing someone who:

Mistakes that are commonly made when purchasing a company

There are several mistakes that entrepreneurs in Louisiana and elsewhere tend to make when purchasing their first businesses. For instance, they may take on more debt than they can afford to repay. Individuals who spend too much to acquire a business may not have the cash needed to pay employees or take other steps to expand the company.

It is also a mistake for a person to purchase a business that he or she is incapable of running. An entrepreneur who doesn't have the skills, knowledge or passion for a given industry is wise to stay away from companies within that sector. Regardless of what type of business a person wants to buy, it is important to do due diligence before completing a transaction. At a minimum, a buyer will want to know why the company is being sold. He or she will also want a clear idea of a company's financial health before agreeing to become its new owner.

The benefits of timely estate planning

It isn't uncommon for Louisiana residents to procrastinate when it comes to estate planning. However, being proactive can give individuals a sense of control over what will happen to them and their assets if they get sick, become incapacitated or pass on. Common estate plan tools include a will, a trust, and powers of attorney. Living trusts may be preferable to wills as they don't need to go through the probate process.

This means that the terms of a trust won't become public knowledge after a person passes away. Avoiding probate may also make the process of settling an estate faster and less expensive. It is important to note that wills only deal with assets that are titled in a deceased person's name only. Therefore, not all assets may need to go through probate even if a person doesn't have a trust.

Family of child killed by Ikea dresser to receive $46 million

Many people in Louisiana recognize the Ikea brand name. The Swedish company supplies furniture to millions of households, but the instability its three-drawer Malm dresser has left as many as eight small children dead and the company owing millions of dollars for product liability settlements. Ikea's most recent settlement with the family of a 2-year-old boy who was killed when the dresser tipped over totals $46 million. Three other similar settlements with families cost the furniture maker an additional $50 million.

The boy's father found his son asphyxiated with his head lodged between the middle and top drawers of the tipped-over dresser. The parents had bought the dresser in 2008, but their lawyer stated that Ikea never notified them about the Malm dresser recall that occurred in 2016. According to the lawsuit, the company knew about the dresser model's instability and threat to child safety but failed to take effective actions to warn consumers.

Do you need an estate plan?

It goes without saying that no one gets excited about creating an estate plan. Even if you understand the importance of doing so, you won't be on the edge of your seat thinking about how much fun it will be.

Unfortunately, if you continue to put this off, it could result in trouble for you and/or your loved ones in the future.

Variables to consider when selling a company

There are many factors that business owners in Louisiana should keep in mind when it comes to selling their companies. By timing the sale properly, they are more likely to obtain top dollars for their organizations. There are many factors that may determine how valuable a company is to a buyer. For instance, if there isn't a lot of money available to purchase a business, it may sell for less than it otherwise would.

If there is a lot of competition in a given industry, it could also influence how much a company is worth to a buyer. In some cases, the presence of new companies in an industry may suggest that it is growing, which may make existing businesses within that sector more appealing. Business owners are encouraged to give themselves one or two quarters to complete the sale process.

Selling a family business can be a lengthy process

Louisiana residents who are thinking about selling a family business have many transition options to explore. While all of them come with certain challenges, each also has its benefits. It's also important to note that timing should be considered. If a person is thinking about selling their business in one to three years, now is the time to start the process.

Not long ago, family business owners often assumed that their next generation would take over operations. However, businesses that are known by a family name and then passed from one generation down to another are becoming rare. This has created unexpected challenges for individuals who would like to retire. Something that is becoming more popular nowadays is to sell a family business and then use the funds to help children start their own businesses. As opposed to passing on an actual business, the idea of entrepreneurship is passed on.

Talking about estate planning over the holidays

Many families in Louisiana have a hard time discussing financial issues with each other. When families gather together, adult children may want to take the opportunity to talk about estate planning with their aging parents. It's important to broach the topic in a respectful way and let aging family members know that planning ahead is in their best interest.

Establishing a trust as part of an estate plan can help aging parents when they are no longer able to work or organize their bills. When the topic is brought up, adult children may tell their parents that it would be better to have financial matters settled while everyone is healthy rather than waiting until there is a crisis to figure things out. Often, family members do not take the time to even discuss trust planning until someone is in the hospital. At that point, it can be difficult to act on the ill person's behalf.

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