Posts tagged with: exit strategy

5 Questions about Your Exit Strategy to Ask Now

Most business owners think they are too young and too busy in the business to ask or answer questions about their exit strategy. Why should they start planning their exit strategy now?

You’re not one of them. That means your eyes have been opened to the imperative of thinking about your exit from the outset of your business – or at least from today forward.

You realize that you have no intention of working this hard for another 5, 10 or 20 years. You’ve built a business you are proud of, that rewards you nicely today and you want to be able to walk away on your terms on your timeline.

Simple and Reasonable

Sounds simple and reasonable. But for many logistical, emotional, and financial reasons, it can’t happen overnight. Unfortunately, most business owners neglect the topic, don’t consider the decisions, and leave the process to the last moment. Unlike their decisive leadership that got them to this point, they’ve sidestepped the following questions. You don’t have to.

There are five key questions about your exit strategy you do want to spend time considering. Explore the tradeoffs of different answers. Sometimes the answer to one dictates the answer to others, but if that one answer changes, you open up other latent possibilities you’d never thought of before. When you lay out your answers to these questions, you will be in a better position to take timely steps and integrate all the necessary elements for your ideal exit. You will be in control of effectively negotiating a successful business transaction to achieve your optimum transaction and transition to reinvention.

  1. How much longer do you want to be actively involved in the business?
    Vague answers like ‘at least 5 more years’ are a way to avoid the question. Dig deeper. Is there an age or a date or a milestone at which time you want to bow out? Maybe it’s easier to look at what you want to accomplish in the business before you’re ready to walk away. This date is important because it triggers every other action, trigger and date along the way to get there.Most successful exit transactions take long-term strategic planning. They can’t and don’t come together in 60 days. You must start the process before you ever thought it would be necessary because it takes far more time than you imagined to line up all facets to suit you.To maximize the value of your business when you do exit, you need to have a clear goal for the company and a plan for your own/your family’s future.
  1. Who will be your likely successor?
    Have you thought about who should be your successor? Should it be your children, one of your children? Should it be your employees? Or would you look for a buyer well-suited to the business, who can take it to new heights? Maybe you think it’s in your customers and staff’s best interest to be acquired by an industry giant or your biggest competitor?There are many options. What’s optimal depends on you, your goals, your industry, your company culture.
  1. What do you need out of a transaction or transition to have the financial independence for your next venture/adventure/retirement?
    This is really two questions and to answer the first half, you need to answer the second half first.
    What will you do next? Do you have a plan? Do you have a project, venture, hobby in mind? Will you travel for 2 years and then build a house up in the mountains? Will you go back to school as a student or professor? Will you volunteer?
    Your plans for your next steps or avocation create the baseline of your financial requirements from any transition or transaction you decide on. Think through your aspirations for the lifestyle you want and the goals on your bucket list you want to fulfill once you exit this business. Clarify what you’ll be doing and what it will take to fund your financial independence. That will set some parameters on your company valuation and the structure of your exit to ensure your future.
    Run the numbers so you know how much you need from the deal so you know with relative certainty that you can pursue and achieve your life’s goals. That has to include basic living expenses, health care costs, long term care costs; and any education funding for children or grandchildren, travel costs, replacement vehicles, vacation home, weddings, philanthropy, legacy planning,  or tax liabilities.
    In his book, Money, Master the Game, Tony Robbins outlines four levels of planning for the future:
  • Financial Security – to cover the basics
  • Financial Vitality – to cover basics plus 50% of regular ‘extras’
  • Financial Independence – to cover 100% of current lifestyle
  • Financial Freedom – to cover current lifestyle plus a few luxuries

What would those numbers look like for you?

  1. Do you know what your business is really worth on the market?
    You need two numbers. In the end it’s up to you to make sure they match. You need to know how much cash you need to take away from the sale of your business, regardless of the form the transaction takes. And you need to know with brutal honesty the market value of your business – what it is actually worth, not what you think it’s worth. Market value always trumps what you ‘need’ out of the business. Don’t get trapped into terms you don’t like because you were only looking at a buyer’s offer number. Use independent experts to value the business before you get locked in during a negotiation. They can often show you some strategic changes to make now to increase market value in your favor that will increase your leverage with potential buyers.
  1. What should you be doing now to minimize your future tax liabilities?
    Don’t look at taxation in isolation. Revisit your business plan now and consider the tax implications for every investment, your projected growth and even your own compensation package. Expand your strategic planning to include contingency planning, succession planning, transition planning, and then run some financial models to see which options look most attractive for your future.

 

Whether you intend to sell your business in the next couple years, or you’ve set a date 5-10 years from now, it’s never too early to start the planning process. Planning now will help you clarify the ultimate goals you are aiming for. Early exit planning allows you to use your exit plan as a framework for every decision you make for the lifetime of your business.

You built your business as the primary vehicle in your portfolio to provide the financial freedom you intended to secure for yourself and your family. Ask and answer these five questions now to ensure your business will deliver on that promise for the future.

You Don’t Need An Exit Strategy IF

Most business owners have not put a lot of thought into planning for their eventual exit from their business. Many many owners, of established as well as startup companies, don’t see any value in planning for an exit that is years if not decades into the future. If they can’t see immediate benefits and consequences for their actions and decisions, they leave it for ‘someday’.

You may not need an exit strategy if you intend to die at your desk and leave a mess for your family and team to clean up.

So let’s suppose. Do the following points describe you?

You Don’t Need an Exit Strategy IF You:

  • Want to liquidate your business upon closing even if it means getting only pennies on the dollar
  • Want to maximize your tax bill to the state and Uncle Sam, minimizing the return to your family
  • Do get to sell in the end (maybe a firesale) and you enjoy paying your technical/transaction advisors at their highest premium fees
  • Are willing to walk away from 30-50% of the value of your business
  • Are willing to let the business lose clients when you depart
  • Don’t feel responsible for your employees after you’re gone. Will they still have a job, will they move, will they have to take a pay cut?
  • You and your business are not a community partner, in donations, sponsorships or time, and your closing will not hurt the community

 

You Don’t Need an Exit Strategy IF Your Family, Your Spouse, or Your Children:

  • Can and will jump in and run the business your way, without any need for some development and succession planning in advance
  • Can salvage or sell the business on their own while you are indisposed
  • Do not need or expect the business to be liquidated in some way to secure their future
  • Do not expect or deserve a return for all the sacrifices they made for you to build that business

 

These statements are a bit exaggerated. ‘Yes, But my situation is different…’ is not enough. Without a Framework for your exit; you, the business, your team, your family, your finances and your future will all be shortchanged. Is that your intention? Is that your plan?

 

Bottom-line

  • Everyone needs a Master Plan – for their business and their life
  • Every owner needs contingency planning – ideally before you opened the doors to your business – sooner rather than too late
  • Every owner needs to start exit planning early – years earlier than any transaction advisor every required of you
  • Exit planning and execution take time and a team to maximize your return and optimize your exit transition

 

If not now, when?

Call us for your free consultation.

If you fail to plan - mine

 

 

posted in Blog
Selling Your Business for Maximum Profit

Press Alert:
Exit Strategy Pioneer Offers Alternative to Help the 90% of All Business Owners who Close Down With Nothing.

Serial entrepreneur and exit strategist Kerri Salls releases Selling Your Business for Maximum Profit to prepare the 8M baby boomer business owners who want to cash out by 2018.

Boston, Massachusetts (PRWEB) 21, May 2014

This Way Out Group LLC, the elite provider of early exit strategy services in the lower middle market, announces that Managing Director Kerri Salls, the pioneering exit strategy leader behind the groundbreaking 4 Step Exit Strategy Framework™ has released her complete system, Selling Your Business for Maximum Profit. This program will ensure that owners of private and family owned businesses can avoid being part of that 90% failure statistic, when implemented years before they intend to harvest the wealth in their business.

Selling Your Business for Maximum Profit is for all business owners who think they want to sell their business in the next 2-7 years. If they are counting on making the most money possible when they sell their business, they can’t afford to wait, postpone, deny or ignore these essential steps in the process to avoid 5 deadly mistakes that most business owners make when planning their exit strategy.

In this comprehensive program, Kerri shows owners how to plan and transform their income producing business into a wealth-producing asset that can be monetized to fund their reinvention, whether they move on to a new venture, adventure, avocation or a favorite hobby. Kerri’s early exit planning approach is revolutionizing an industry where historically, selling business owners are ill equipped to leverage any transaction to achieve their dreams in business and beyond, and only a dismal 10% ever cash out.

As Kerri teaches in Selling Your Business for Maximum Profit, it takes 2-5 years to accelerate growth and maximize value to make a business buyer ready and buyer attractive. In Selling Your Business for Maximum Profit, Kerri takes owners by the hand and leads them through a step-by-step system that Kerri says any business owner can learn and apply.

But until now, no one ever told owners that early exit planning was essential or that it takes just as much time, effort and focus to be able to cash out as it did to start and grow their business.

Selling Your Business for Maximum Profit includes the A-Z reference manual, HARVEST Your Wealth, and the companion 5 hours of audio training alongside the ultimate resource, their own personalized plan creation workbook, to apply these modules to their own business in bite-size pieces.

David Corbin says: “Implement the tools and strategies from HARVEST Your Wealth and you will live and sleep with peace. Why? Because you will control the destiny of your business AND your life. The wisdom and knowledge that Kerri Salls shares in this book is worth its weight in gold, literally. It is a must read for any serious entrepreneur.” And Joel Bauer says: “Without Kerri’s book, HARVEST Your Wealth, you are planning to fail in life.”

Selling Your Business for Maximum Profits reveals Kerri’s simple, step-by-step proven system, enabling any business owner to make their business both buyer ready and buyer attractive so they can cash out of their business to cash in on their reinvention dream. “The key to my effectiveness,” she says, “is based on a coordinated collaborative approach to build value and plan an owner’s exit in parallel. I give readers the decision and planning tools they need, to maximize their profits from selling, scaling or passing on their business to successors.”

Kerri has simplified what is often a daunting and intimidating process down to simple methods, tools, templates and checklists that prepare owners for the biggest payday of their life. It covers:

  • How to transform an income generating business into a wealth-producing machine they can sell or scale on their terms and on their timeline.
  • How to accelerate growth, maximize value and make their business both buyer ready and buyer attractive
  • How to optimize the growth whether they want to sell in three years or thirty years.
  • And so much more

Details and purchase information for Selling Your Business for Maximum Profits by Kerri Salls are available at http://www.sellingMP.com.

At This Way Out Group LLC, http://www.thiswayoutgroup.com, Managing Director, Kerri Salls is leading a revolution in the exit planning field. As a prominent exit strategist and mentor who prepares lower middle market owners and entrepreneurs to achieve their optimum exit outcome, she has created a new early exit planning paradigm focused on the selling business owner, starting well before transaction advisors get involved, in order to increase the seller’s leverage at the negotiating table.

Since 2012, Kerri Salls has been the host of the groundbreaking podcast radio show Exit This Way on URBusiness Network and has produced over 160 shows discussing the idea that “it’s never too early or too late to plan your exit.”
TO ARRANGE INTERVIEWS OR TV/RADIO APPEARANCES CONTACT:
Kerri Salls
This Way Out Group LLC
http://www.thiswayoutgroup.com

# # #

Succession market is booming, baby

Todd Nelson’s article, Small Business: Succession market is booming, baby, in the Minnesota Star Tribune on March 30, 2014, about Richard Burrock, lead partner for business succession services at Boulsy is more anecdotal proof of the demand for succession planning from baby boomers.

In his article, Nelson quoted Burrock: “The need for an exit strategy is gaining urgency as the baby boomers who own 40 percent of Minnesota’s private companies approach retirement.”

He quoted statistics Burrock shared: “More than half of the privately owned companies in the country face an ownership change in the next 10 years, yet an estimated 75 percent have no transition plan in place, Burrock said. Those who don’t are unprepared for life after retirement, with successor owners unidentified, tax strategies unaddressed and business responsibilities that largely have defined them soon out of their hands.”

These are all issues that take time to address and execute, which you can’t do if you wait until it’s too late.

These are the same distressing statistics we’ve been sharing for years to educate and encourage baby boomer business owners to take action.

Nelson quoted Burrock as saying: “To do nothing is a disaster in the making. It really takes away their flexibility. What I always say to clients is, if we plan it properly, you can have it both ways. You can have a nice soft landing and yet you can accomplish your financial goals at the same time.”

Owners need to hear this statement often.

Richard Burrock is another advisor who honestly telling business owners what they need to hear, not just what they want to hear. I concur with his suggestion “that owners begin planning early, at least five years before retirement.”

Nelson substantiated Burrock’s comments by referencing research by Expert Ritch Sorenson, professor of entrepreneurship and academic director of the Family Business Center at the University of St. Thomas’ Opus College of Business. Sorenson’s succession research “emphasizes the importance of developing a common culture that can sustain and be sustained across generations,”

Sorenson also endorsed the advice to begin business [succession] planning early.

If you have questions about your succession planning readiness, contact us to schedule a free consult.

* emphasis is mine.

Smart Exit Strategies Begin With Early Exit Planning

It’s Never Too Early Or Too Late To Plan Your Exit Strategy

Early exit planning is essential for every business. On my radio show, Exit This Way, I open every show with the statement:

“It’s never too early or too late to plan your exit.”

Attorneys, wealth advisors, tax advisors and others all encourage early exit planning for business owners to minimize taxes; and to set up a variety of trusts to help you continue to control your company and its assets, while offering full protection for the business and your estate.

Paradox of Business Ownership

Don Brown, Vice President and Senior Relationship Manager at KeyBank opened his article, Smart exit strategies begin with early planning in the Kitsap Peninsula Business Journal by stating:

“What [most business owners] often fail to see and plan for is the byproduct of that success — that someday they will want or need to move beyond what they’ve worked so hard to build.”

That’s the crux of the paradox of business ownership.

There is a difference between exit planning and succession planning, but they must be addressed together because the decisions and outcome of both are intertwined.

I hear it many times a week: “I’ll walk away from my business when I’m ready to walk away. . . .” However, to successfully walk away when you are ready to walk away, doesn’t come together because you say so. There are many factors to consider, decide and prepare. The more prepared you are, the more control you have of timing, valuation, ownership, legacy; along with financial protection for you, the business and your estate. The earlier you start that planning, the more secure you can be that all the pieces are aligned and integrated to achieve your objectives.

Timing Matters

Deciding when to exit, never mind which exit option you want to pursue, is non-trivial. The learning curve and execution of that decision is time-consuming for you the owner as well as your team of advisors.

Succession planning and exit strategy planning can be a distraction from running the day-to-day operation of your business. When you start early, you have control and flexibility to explore options and leverage your advisors to optimize your outcome. Consult your All-Star Team of Advisors early and often.

The risk of waiting until too late (and then needing to act fast because of health, business cycles, market conditions, business or family issues) is that you may leave up to 50% of the value of your business on the table, and share a greater portion of the proceeds with ‘Uncle Sam’. With good planning, that doesn’t have to be you.

 Orchestrate Your Exit

As Don says: “a well-developed exit strategy is carefully connected to your overall business strategy.”

That’s why at This Way Out Group, we provide a Four Step Exit Strategy Framework™ to tie every strategic decision in the business, short-term and long-term, to your exit and succession strategy.

In parallel, your estate plan and exit strategy must be integrated to work in concert with each other. It takes a team approach to orchestrate how these different pieces work together. At This Way Out Group, we facilitate that team to cooperate, coordinate and collaborate in your best interest. Contact us to see how early exit planning can help you.

It’s Up To You How You Sell Your Business, Or Divest From It

Did anyone ever tell you you were going to have sell your business, or plan for the end of your business to be able to cash out? In an article entitled, How Will You Leave Your Small Business The Last Time?, in Forbes  this week, author Jim Blasingame started with the statement:

“Every small business founder gets to decide when they will start their small business. But when and how they leave the business is much less in their control.”

Biggest Payday

There is plenty of support and advice available to help you start and grow your business, from advisors, coaches, consultants, training, courses, books, and videos. But until now, there’s been a dearth of readily available free information that you can access anonymously, about how to sell your business. As more owners figure out that the biggest payday of your life only comes when you sell your business, the subject is starting to percolate up into strategic decisions owners are making along the way.

As Blasingame points out in this article, how you leave your business is not as straightforward or simple as launching it was. His new survey results show no improvement in small business owners’ preparedness to plan or execute their intended exit strategy. Too many owners are resigned to the default option of exiting feet first. His last question is one you can’t afford to ignore or not answer:

“One day in the future will be the last in your business. Are you making plans for that day?”

Default Option

As an exit strategist, I see too many owners selfishly resign themselves to the default option without considering the impact on employees, customers, vendors, family or their spouse. Expecting your family, grieving spouse, and your advisors (whom your spouse does not likely know well) to clean up the business, sell it or divest of it in some way in order to generate the wealth and security you wanted to leave them, is abdicating your ownership responsibility. It’s up to you to decide how to sell your business, scale it or pass it on to successors.

Please contact us for a FREE 30-minute confidential consultation to discuss your objectives, timeline and how to plan for your last day in your business.

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

URBNlogo3

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.

Three Fatal Flaws Business Owners Don’t Know They Make

Three Fatal Flaws

Most entrepreneurs have blind spots. Before we even address the core mistakes entrepreneurs consciously make, I want to expose the three fundamental flaws most business owners don’t even know they are making. They are:

  1. Weak Plan
  2. Weak Team
  3. No Communication

Indeed, there are other factors. We’re focusing on the three most widespread. And they are connected. How well, or how poorly, you do any of these feeds the other two.

These three flaws are almost universal in businesses where owners are consumed with crisis management and operational details on a daily basis. These flaws are so prevalent because of the blind spots we’ll address in a later post.

Weak Plan

Talented, educated people with 10-20 years industry experience leap into starting their own business, creating a product, or hanging out their shingle in the previously disproven belief “if I build it, they will come.

In their past lives, they never had to prepare product plans, project plans, marketing campaigns, cost and sales projections for the company’s product or service. They had a team and resources in the company to do the research and prepare these plans.

In their own business, they have a choice. Either shoulder all these jobs/responsibilities themselves and slow down the release of their product or hire a team to help.

The Opportunist, without planning beyond a conversation or back-of-the-envelope bullet list:

  • Boldly leaps into building product
  • Confidently closes sales
  • Maybe racks up huge credit card bills to finance the company with no short-term or long-term plan determining:
    • Who or what constitutes their market
    • The size of the market
    • The revenue potential for the company
    • Their break-even point or
    • Any other key performance indicator

This is the No. 1 flaw in the foundation of more than 90% of all businesses (not just startups or small businesses). If this describes your business, you are not alone.

Weak Team

Far too often, that same Opportunist who’s reaching for the brass ring is the owner who leaps into his or her business willing to do everything, wear every hat, with a solid “do whatever it takes” attitude to make the business a success.

In principle, that is a necessary commitment to ensure the business will succeed. However, there’s a secret these entrepreneurs learn fast or the hard way. I want you to learn it fast.

The sooner and faster you ask for help and
surround yourself with experts
so you can focus on what you do best,
the farther you will take your business.

That’s a key element to long-term goal achievement and every success in your business and beyond.

Very often, the entrepreneur who gets overwhelmed and recognizes it, will proactively hire a team. But there’s still a problem, it’s still the wrong team.

They need a team they can delegate pieces of the business to who will “own” the job and get things done, and not require close supervision and training. This applies equally to your:

  • webmaster
  • graphic designer
  • office manager

as it does to your:

  • Design engineer
  • Sales manager
  • Marketing manager
  • Attorney
  • Tax advisor
  • Experts on your Board of Directors

That is,

you need to surround yourself
with experts – not subordinates.

Good owners lead their teams well. A great business owner inspires team members to lead themselves to excellence.

Other entrepreneurs, in the false belief that they are being responsible and frugal, don’t hire anyone. They don’t ask for help and drag the business down by getting no help, or relying completely on books and courses, attempting to become a master of all things in their business.

This is the No. 2 flaw in the foundation of more than 90% of all businesses.

No Communications

A lack of communication can be a serious obstacle to taking the business all the way. It can be a hidden flaw owners don’t even know they have.

Most companies fumble communications because most entrepreneurs do not have a background or focus on communications. Communication seems trivial and not the best use of the owner/engineer/inventor’s time. Entrepreneur/owners are so consumed with the business, holding the entire business in their head, that even when they do speak, they know all the implications and facets of what they are saying – but no one else does. They know what they’re talking about but their various audiences don’t!

Because they have no communication skills, never developed a communications plan and do not implement communication procedures, it’s a problem for everyone else. The problem is that no one else has any context for any announcement, decision, plan or offer the owner does remember to share.

Admittedly, most entrepreneurs are so busy in the business that they feel they can’t afford to take “time off” to document everything about the business, never mind debrief the team after a major milestone or client success. Lack of good communication creates the following risks:

  1. It creates a void between the entrepreneur and everyone around them (staff, advisors, investors, vendors, clients, media, Board of Directors). That void opens the opportunity for misunderstandings, miscommunications and totally preventable problems.
  2. This lack of communication to/with any stakeholders in any form, puts the entire business at risk until communications systems are fully implemented. This is critical, even if the CEO does not recognize it, because if that same brilliant CEO who carries the business in his or her head were incapacitated for any reason, or unreachable for any reason, no one else in the business has enough information to make a decision, take action or solve a problem.
  3. When the entrepreneur insists on tight control of intellectual property, financial data, and how to run the business, he or she actually restricts growth and reduces the market value potential of the business. It’s the exact opposite of what the entrepreneur expressly set out to do!

This is the No. 3 flaw in the foundation of more than 90% of all businesses.

Moreover, there’s actually a fourth flaw.

Develop Only an Income Plan

Most people instinctively start and launch their business as fast as they can to get revenue in the door. They implicitly understand the principle: “Nothing happens until you sell something.”

They get so busy in the business making money; they don’t develop a financial plan, living out of the checkbook. A few years down the road, they are in the same place, making good money (income), but working harder than ever, not getting ahead, with no end in sight.

That’s because their unconscious business model is based on an income plan, not a wealth plan. They are still running their finances on a cash flow statement (maybe even out of the checkbook) and never planned for or implemented any strategies to put a wealth plan into motion.

It’s the single biggest financial mistake you can make – regardless of the size of your business. That’s because you have not created your exit strategy, the essential component of the wealth plan that lets you scale or sell the business profitably.

Form your clear mental vision of what you want,
and begin to act with faith and purpose.
Wallace D. Wattles

 

The Business Wealth Crisis is Here

The sellers’ window is here: 2013 – 2018. You can’t afford to wait to monetize the business you’ve built. Think about what you need to do now in your business:

“the difference between greatness and mediocrity, mediocrity and millions, spectacular and pathetic performance is how well you use your time, your opportunities, your efforts, your resources and your assets.”
Jay Abraham

“A calculated, adjustable exit strategy puts business owners in the ideal position to face the unexpected, whether the event is fortuitous, from a disagreement to a death or divorce, or providential such as an off market offer for the business.
An exit strategy enables business owners to take control of the selling process and ensure superfluous problems or delays are not encountered, which can reduce the price whcih a business can fetch.”

Michaela Mcnamara

“A well developed exit strategy also allows you to maximize the value of the business by enabling you to address the drivers that impact the price of the sale and can manage the expectations of partners, colleagues and family.”
Joseph Bridger, Partner Corporate Transactions of Pitcher Partners

“A business that operates successfully and profitably without relying on the day-to-day efforts of the owner is something worth paying for.”
Paul Banister, Director of Tax for Grant Thornton Australia.

This process could take years and it does involve many components.
Just as your business can change, from the product mix, markets, marketing channels to management; so too can your exit strategy change. You need to review it and revise it as often as necessary, at least annually.

Exit Strategy Stages

An exit plan to sell your business is more than a transaction. When you understand that there are five stages to the exit process and that there is a systematic way to move through the whole process without getting overwhelmed or discouraged, you can relax and simply ‘work the process’. That’s what these five exit strategy stages are all about.

Exploration/Evaluation – This where all your exit planning happens to understand the scope of work to do, the opportunities and timeline involved to achieve your exit to reinvention.

Growth Process Implementation – To maximize value of the business and build a deep foundation to make the business buyer attractive, you need to put a growth strategy into motion. If you sell the business as is, the buyers can’t see the future value to them in what you do now.

Exit Integration – The exit transaction is the culmination of all your planning, preparing the business and your team for your exit, maximizing value and determining the kind of exit you want and the terms you want to exit, along with the terms, timeline, cashflow for your reinvention.

Track & Measure for Excellence & Value – Tracking and measuring are the only way you ever know if you are getting the results you want. Tracking and measuring also help you raise the bar and add value in the intellectual property you own and the goodwill value you’ve built up in the business. Tracking and measuring is an essential toolkit you must employee, refine and promote to buyers to demonstrate your team and business excellence and the value they are worth.

© 2009- 2016 This Way Out Group LLC top