What Is Exit Planning?
An Exit Plan asks and answers all the business, personal, financial, legal and tax questions involved in transitioning a privately owned business – either now or in the future.
It includes contingencies for illness, burnout, divorce and death.
The purpose is to maximize the value of the business before selling, minimize taxes, and ensure the owner is able to accomplish all their personal and financial goals – on their terms.
It’s Getting Harder To Sell
The Market for selling a small business is already flooded.
- Baby Boomers own over half of all small businesses in the country
- 70% want out within the next 10 years
- 48% want out within the next 5 years
- 82% that do go to market DON’T’SELL!
It’s Already a BUYER’S MARKET
You many not be ready to sell today, but you will be someday.
Watch this video to learn what’s involved in getting the Best Offer – When You Are Ready (28 minutes)
THE 3 CRITICAL FACTORS
1 - BUSINESS VALUATION
Owners need a present-day valuation to know whether the value of the business will provide enough after the sale to fund their retirement goals.
Not having that information means you are Guessing.
2 - COMPANY ATTRACTIVENESS
Thinking like a Buyer rather than a Seller will allow you to see your company as an Asset that needs a High Value.
In addition to the Financials, you need to be Best-In-Class in the areas of :
- Customers
- Your People
- Structural Systems
- Social & Culture
3 - PERSONAL PREPAREDNESS
“What will you do the Monday after you sell the business?”
That’s the six-figure question you must answer before you even consider selling.
75% of Owners regret their decision one year later – mostly because they didn’t address this up front, when they had the time to think it through clearly.
To help you identify Real Market Value we use a tool called the Value Builder Score which measures:
- Financial Performance
- Growth Potential
- Independence
- Cash Drain or Faucet
- Recurring Revenue
- Market Dominance
- Customer Satisfaction
- Owner Freedom
How We Help You Solve These Problems
The ValueBuilder Score™ allows you to see where you are and what it would mean to the value of the Company if we made some minor adjustments.
In short, you can increase the value of the “Sale” by doing some of the risk removal work in advance.
Many Owners have seen the multiple double after doing this work.