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March 2024

Is 2% Inflation Targeting Over?

  Sometimes there are seismic shifts in fundamental financial and economic policy that go completely unnoticed by the media. We might just have had one of those. The question of the day is, has the Fed given up on the 2% inflation target? It looks like the Fed is gently backpedaling away from that 2% target. I've talked about this probably for the last two years, that I wouldn't be surprised that all of this happened. And finally, we're getting something that's going to look more like 2 to 3%. That's a big difference. In fact, the most recent numbers show an upward revision of inflation expectations, and yet the Fed is talking about possibly lowering interest rates two to three times this year. So what's going on? Why the dovish tilt in the face of rising expectations? Now, we've talked about a Goldilocks economy a number of times in...
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Your Guide To The Letter of Intent (LOI) – An Essential Document for Selling Your Business

Two men talking about writing a letter of intent
What’s a Letter of Intent (LOI) To Sell  Selling your business starts to feel real with the introduction of a critical–yet misunderstood– document: the Letter of Intent (LOI) to Sell. This document, while not usually a final agreement, sets the tone for what is to come, acting as the "rules of engagement" in the negotiation process. Just as a marriage proposal signifies a commitment to a shared future, an LOI marks the start of a delicate dance between buyer and seller, where strategy, foresight, and negotiation play key roles. As the seller, you will want to ensure you’ve completed your Deal Book prior to signing an LOI, anchoring the valuation benchmark as high as possible. This initial reference point in the LOI will be the number against which the buyer negotiates and tries to chisel away at the value.   Beyond outlining the intentions of both the buyer and the seller,...
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How To Sell Your Business To A Competitor

How to Sell Your Business to a Competitor
Navigating the sale of a business to a competitor presents a complex but strategic choice for entrepreneurs. It involves not only negotiating a fair price but also aligning strategic objectives and safeguarding the business’s legacy. This article offers a roadmap for business owners considering this path, covering key steps from preparation to deal closure, to ensure a successful transition to new ownership. Understanding The Reasons For a Business Sale In business, deciding to sell, especially to a competitor, is driven by diverse strategic and personal reasons. Business owners must carefully balance the advantages with possible effects on their legacy, staff, and future projects. It's essential for any entrepreneur considering such a pivotal move to fully understand these motivations. Strategic Alignment and Market Consolidation When selling a business to a competitor, leveraging complementary strengths can create a stronger market presence by merging unique competencies, enhancing product offerings, and improving efficiencies. This...
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529s, More Than Just a College Savings Plan

  529s have evolved a great deal since they were first designed for funding college. I'm here at Texas A&M, my alma mater here in College Station, visiting clients. I love this place. It's a lovely campus and it's a great opportunity to talk about how we can leverage 529s to do more than just pay for college. The original 529 came in two flavors. The first was prepaid tuition. In most states those have morphed significantly because the deal was too good to be true, and the states ended up with some pretty significant bills. The other type is the more traditional 529 savings plans where you gift for your kids, your grandkids. There's a lot of neat things about the 529. One of them is the opportunity to do what's called a five-year gift. Normally, gifts that are not reported have to be $18,000 per adult per child....
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Building Your Expert Team to Sell Your Business

Image of CFP giving financial advice
When planning to sell your business, the difference between a good deal and a great one often comes down to the team you have in your corner. Selling a business isn't just a transaction; it's a major life event that requires strategic planning and execution to maximize value. Let’s take a look at the expert team you need to help you. The Expert Team for Maximizing Business Value 1. Wealth Manager: Your wealth manager is the linchpin in aligning the sale with your long-term financial goals. The sooner you can bring in a wealth manager who has expertise in the process of selling a business, the better they can get to know you to serve your needs.  While their role might be more strategic and advisory, they ensure that the proceeds from the sale fortify your overall financial health and wealth strategy.  They also serve as the “quarterback” of your...
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