Exam 13: Planning for the Harvest

Leonard wants to sell his business, but the bank will not lend the buyer enough money. Between personal savings and the bank loan, the buyer has about 70 percent of the asking price. Which of the following options would be best for Leonard in this situation?

What are professional and personal issues an entrepreneur may face in the period of time from when the harvest is announced and it is completed?

Todd's small company, Nimbus, developed a video game called Combat Skill that took off among gamers. Farbase EAD is a large video game developer with its own gaming system that has offered to buy Nimbus. Explain this type of harvest transaction and what motivations Farbase EAD may have for purchasing Nimbus.

Match the term with its definition. -The first sale of shares of a company's stock to the public

The mere fact that a firm is earning high rates of return on its asset indicates that

Match the term with its definition. -A leveraged buyout involving the purchase of a company with the intent of selling off its assets

Vasily is selling his business. As a harvesting owner, we would expect him to prefer _____ over _____.

Ellen is a dentist and has decided to develop a harvest plan. She wants her efforts to be successful and effective. Discuss suggestions for crafting an effective exit strategy.

An employee stock ownership plan represents a(n)

Having publicly traded stock can be beneficial to owners in that a public market offers

Which of the following is one of the big financial questions associated with selling a business?

As Jacob considers exiting or harvesting, he is concerned with which of the following?

In earlier years, leveraged buyouts became synonymous with the _____ LBO.

When is the best time to begin thinking about an exit strategy?

Post-harvest entrepreneurs may become disillusioned when they realize their sense of identity

With a private equity recapitalization, the firm's equity is sold in public equity markets, but the transaction is handled by a private investment banker.

Eleanor has money to invest and is considering buying a company. When comparing her alternatives, her _____ on any investment is the rate of return that she could earn on a similar investment.

A financial buyer of a small business is most interested in the firm as a stand-alone, cash-generating business.

Before he executes his exit strategy, Arthur should

Harvesting is the method entrepreneurs and investors use to grow their firms.