Posts tagged with: early exit

Kerri Salls is host of Exit This Way on the UR Business Network

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I’ve been hosting the radio show, Exit This Way on URBusinessNetwork for going on a year now. We’ve produced over 130 interviews to help owners of privately held businesses, like you, to understand and prepare for the biggest payday of your life – selling/ scaling/ cashing out of your business on your terms on your timeline.

URBusinessNetwork today posted an extensive blog about the Exit This Way show and what we do at This Way Out Group. Check it out: http://urbusinessnetwork.com/kerri-salls-is-host-of-exit-this-way-on-the-ur-business-network/

Having a show on exit strategies sounded like a narrow topic but Kerri has recorded over 100 shows and continues to amaze us with her continuing to produce relevant content. She has introduced us to Lawyers, Accountants, Investment Bankers, Business Experts and entrepreneurs from across the world. Her message is that it’s never too early or too late to plan your exit.

If you have an exit story you’d like to share, or you know an expert who can contribute to the discussion of  what owners like you need to know now, have them contact me. I always welcome new  interesting guests for a conversation you need to hear to prepare for your exit, whether in three years or thirty years.

At This Way Out Group we believe an owner should not try to sell/scale/pass on their business to a successor on their own or with just one or two expert advisors. We know it takes a team. And to be successful achieving your optimal exit, that team must be coordinated to cooperate and collaborate in your best interest.

The second part of our new paradigm is advocating that every business should have an exit plan from day one, as a framework for every decision you make. If you didn’t start with a plan, start now.

The third leg of our new approach is educating you that early exits are in your best interest ( the owner).

Listen to the shows we’ve recorded on Exit This Way. Our guests contribute to this new paradigm shift. Down load them to your Ipod and listen in the car. You will get an unparalleled education you cannot find anywhere else.


To learn more about how our new model can work for you, your business, your family and your legacy, email me or call.

How and When to Cash Out of Your Business

Cash OUt

When you started your business, your whole focus was to get customers, generate revenue and try to make a profit from what you love to do and what you are very at.

It’s never too early or too late to plan your exit. Think about your options now, whether you plan to cash out in the next couple years or in a couple decades.

Every business owner has 3 OPTIONS  of how they’ll get out.

  1. The first option is the default that over 95% of all business owners choose. That’s to do nothing, exit feet first and leave your family to muddle along or liquidate the business as best they can to pay your estate taxes.
  2. The second option is a bit better. That’s the standard option of paying a fee (e.g., $50K+) and a commission (3-10%) upon sale with an outcome that can pay you the owner a modest multiple (x) of your operating profit 6-10 years from now.

Have you thought about this as a viable option?
Do you want to wait that long?
Do you have the drive to continue growing the business another 6-10 years?
Is that the return you were looking for?
Can you finance your reinvention on that?
Is it close to your Number?

Are you aware of how this works? I want to make sure you know about it – but I think it’s an option that favors the buyer. But you need to know what it is to know if it is distasteful for you.

Alternatively, did you know it’s in your better interest to exit early, that when you exit in the first 3-5 years your ROI is greater? And right now, if you exit in the next five years (2013 – 2018), it is optimal timing to hit the seller’s market, instead of the buyer’s market if you wait more than 5 years (beyond 2018).

3. I offer a 3rd option for how to get out. My way is more pro-active and
measurably more expensive up front.
My approach helps owners optimize and leverage results early.
They can exit 2-4 years earlier, potentially realizing 4-6x operating profit,
instead.

 Your Choices

  • Take my 3rd option and get out four years earlier, with a higher multiple of EBITA in cash, with systems, structures and wealth preserving vehicles in place to maintain the lifestyle and benefits your business has provided, or
  • Take the standard option of a lower multiple in 6-10 years when it will be a buyers’ market.

Here’s how I make you succeed. I take a comprehensive strategic approach with only one objective, to help you the selling business owner get out on your terms on your timeline. This is all I do.

HARVEST YOUR WEALTH — Exit Essentials for Your Business

ANNOUNCING

This Way Out Group LLC announces the release of HARVEST YOUR WEALTH – Exit Essentials for Your Business by exit strategist, author, speaker, and radio host, Kerri Salls to help business owners cash out of their business so they can cash in on their future.

FRAMINGHAM, MA (January 21, 2013) – This Way Out Group (http://thiswayoutgroup.com), the break-out boutique services firm providing comprehensive collaborative exit planning services announced today the release of HARVEST YOUR WEALTH – Exit Essentials for Your Business (This Way Out Press $17.97 on Amazon) by CEO and author, Kerri Salls. HARVEST YOUR WEALTH – Exit Essentials for Your Business educates and prepares business owners to monetize their business on their terms when they plan to get out, instead of simply shuttering the business and walking away. Only when an owner prepares the business for a clean, solid, and profitable exit can they expect to cash out of the business to cash in on their future. Written by expert exit strategist Kerri Salls, HARVEST YOUR WEALTH reveals the secrets the transaction experts want entrepreneurs to know before selling a business, but no one has been telling them until now.
In HARVEST YOUR WEALTH, Salls introduces the 95% of all entrepreneurs and owners who do not have an exit plan for their business to the decisions, choices, options and opportunities they need to know about years before they decide to get out of their business. She advocates for early exits, especially over the next five years for baby boomers.

Salls says, “HARVEST YOUR WEALTH gives the owner/entrepreneur more control and leverage getting out. Plenty has been written on starting and growing a company. Very little has been written on exits, on monetizing that investment to be able to get out. What has been written has focused on the financial and legal side of the exit transaction or from the advisor or the buyer’s perspective.”

Less than 10% of business owners who put their companies up for sale actually get the deal done. (2010 Survey of Brokers and Buyers by MidMarket Capital) “[Exiting small business] owners are preparing for the deal of a lifetime with possibly zero experience.” (MorganStanley SmithBarney publication, 2011) [via Blackbridge Newsletter 2011]

They think they’ll be able to sell when they want for what they want with no lead-time or preparation of the business, the team or the business owner. That’s a diet of hope and promises that will satisfy no one. Because of a lack of pre-planning, 95% of all business owners are leaving up to 50% of the value of their business on the table when they exit.

In this book, Salls focuses on the needs of owners to make their business buyer ready and buyer attractive; on exit planning from the seller’s perspective before the transaction experts, or the buyers come into the picture. The urgency for baby boomers to act now cannot be overstated.

HARVEST YOUR WEALTH provides steps, checklists, assessments, questions and exercises all business owners must consider in order to take control and achieve their goals in the business and beyond. Salls provides the resources, tools and insight to encourage entrepreneurs and business owners to, as she says, “Plan their exit from the outset.”

Salls started her career in the Peace Corps in West Africa and then spent a decade accumulating multi-million dollar corporate achievements before launching her first business in 1988. She has been active in business strategy and exit planning for 40 years.

This Way Out Group LLC [http://thiswayoutgroup.com] has been refining and applying a holistic system to assist business owners since 1999 specifically to help owners transform an income generating business into a wealth-producing machine so they can sell or scale the business on their terms on their timeline. Partnering with the business owner 2-5 years before their expected exit, we help established and hyper-growth companies prepare for and achieve their optimum exit strategy. We help owners to accelerate sales, optimize growth, and maximize value to make their business buyer ready and buyer attractive so they can get out and move on to the next venture, adventure or avocation.

HARVEST YOUR WEALTH – Exit Essentials for Your Business is available at Amazon and other outlets or at www.harvest-your-wealth.com.

TO ARRANGE INTERVIEWS OR MEDIA/SPEAKING APPEARANCES CONTACT:

Baby-boomer Sellers’ Opportunity

Here’s the recipe you need to set up in order to have the licensed transaction experts at the end, competing to sell your business and to have buyers eager to buy on your terms on your timeline:

  • Start succession planning early
  • Maximize valuation
  • Accelerate growth
  • Plan an early exit
  • Make your business buyer attractive

It’s worth the time invested all along the way for you to be able to exit with the financial freedom to pursue your reinvention.

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