Business Planning Strategies Jeopardy

Financial Ratios - Market, Liquidity, or Profitability

100

Return on Assets

Profitability

200

Current Ratio

Liquidity

300

Profit Margin

Profitability

400

Price Earnings Ratio

Market

500

Interest Coverage Ratio

Liquidity

Exit Paths - Family, Co-owner, Employee, or Outsider

100

Management Buy Out

Employees

200

Gifts or bequests

Family

300

3rd Party Sale

Outsiders

400

ESOP

Employees

500

Merger

Outsiders

Tax Cuts and Jobs Act -Deduct, Divert, or Defer

100

Real Estate Taxes

Deduct

200

Income to kids

Divert

300

1031 or 1035 Tax Free Exchange

Defer

400

Gifts of Business Interests

Divert

500

Sale of ESOP w/1042 Election

Defer

Business Exit Readiness - Stay, Grow, or Go

100

Gifting over 10 years

Stay

200

3rd Party Sale

Go

300

Employee Stock Ownership Plan

Stay and Grow

400

Increase gross margin and net income

Grow

500

Recapitalization

Stay and Grow