Posts tagged with: maximize value

How to Hire a Mentor Exit Strategist

It’s a big step to consider hiring an exit strategist. When you decide you want an exit strategist on your team, hire someone who will help reduce risks, maximize the value of your business, and prepare you and your business for sale or succession. Here are ten fundamentals to qualifying your ideal exit strategist.

Qualify Your Ideal Exit Strategist

  1. Hire someone who has done what you set out to do (e.g., launch a new product line, bring in $10M new revenue, streamline production to eliminate all late and lost jobs) to maximize the value of your business.
  2. Work with an advisor who has built businesses, has taken leadership, ownership, and accountability to get things done; hired the team and has risked everything themselves.
  3. Work with an advisor who teaches you more than one way to get things done, so you can customize the learning to you, your team and your company as you prepare for a transition/transaction.
  4. Work with a mentor who will sit with you to collaborate, rather than a consultant who keeps himself or herself apart. You need someone so engaged in your company and committed to your goals they are always thinking of better solutions for you, a virtual partner at your side.
  5. Work with an authority, someone who delivers specific ideas and solutions to run your business more effectively not just ‘If you fix this, your valuation will be higher’. Work with an authority who also offers training programs engaging your entire team to increase company valuation.
  6. Work with an advisor who is a peer, who has been in your shoes, and who teaches you at your level. You want a mentor who understands your size business, your industry, your challenges, who recognizes and values both your short-term and long-term objectives.
  7. Decide if you need a specialist in marketing/sales/service/HR/finances to solve a specific problem in one area; or if you want a mentor who will help you assess the entire operation to institute and/or refine business fundamentals to add value and leverage before you get to a transaction.
  8. Decide if you want to give away your core value to an outsider to get a task done; or if you want guidance and direction from a virtual partner who will help you integrate systems and strategies to take your whole company to the next level so you can achieve the financial success you know is possible.
  9. Decide if you want to hire a trainer to get you started in a specific skill set; or if you want to hire a mentor who will stick with you to achieve very specific results, in this case preparing for an exit on your terms, on your timeline.
  10. Do you need information that a one-time consultant will produce? Or do you need the ongoing insight, experience and expertise of an exit authority to turn information into knowledge you can integrate into your business, adding value every day?

Advisor Selection

The advisors you choose to surround you, in preparation and through the transaction process, directly impact the outcome you achieve. Know why each person is on your team, the value they add, and what they deliver. Hire the best you can find, not just the best ‘you can afford’.

Hiring the team you need to cash out on your terms is an investment that offers you a high return while reducing your risk to get there.

Use your exit strategist as a resource working with your advisors, integrating them effectively into your team, as the conductor of your orchestra (advisors) performing your symphony (exit plan).

Your exit strategist is central to ensure the success of you and your team of experts in any sale, scale or succession plan. Use these 10 fundamental qualifications to help you identify your ideal exit strategist.

Preparing for a Liquidity Event – How To Maximize Enterprise Value Now

Advisors and buyers speak in a language most business owners have never heard before. Their term, ‘a liquidity event’ is a euphemism for many transaction options.

In financial terms, a liquidity event can be the merger, purchase or sale of an enterprise or even an entrepreneur’s Initial Public Offering. For established lower middle market business owners, a liquidity event is any exit strategy that converts ownership equity into cash for owners and investors.

Regardless of what type of exit transaction you choose to pursue, it is advisable to prepare well for that liquidity event. That preparation entails maximizing enterprise value now. It is essential to start early to produce and prove the maximum value your business should command in a liquidity event.

Preparing for the Transaction

Timing is Everything

You want to be in a position take advantage of any trends and growth opportunities in your market. This can also mean being open to recapitalizing the business, not just cashing out.

Lifestyle and Personal Goals

Business success offers a lifestyle and standard of living that are comfortable. Defining your personal goals, criteria, pursuits beyond the business takes time and often entails planning ahead. Without a clear plan for your reinvention, even if it’s the right time or right opportunity, you may not be ready to take that step.

Post-transaction Commitments

The terms of a deal are unique to every buyer/seller agreement. But unlike selling a house, there are strings attached to the deal you sign at closing for your business. Those commitments or responsibilities can impinge or constrain your transition plans. For example, the successful integration of your company, your team into the buyer’s organization or culture may require your assistance for months before the transaction as well as more time and involvement after the transaction itself.

Financial Considerations

The time to plan and prepare your retirement/reinvention financial requirements is long before the liquidity event, in parallel to preparing you and the business for this transaction and transition. For example, pre-transaction (before any type of liquidity event) establish your:

  1. Retirement goals and ensure they are engaging you and compelling you forward beyond the business
  2. Gifting plans and execute them
  3. Preparations for letting go – owners are often surprised how hard this is to do

Suitors

Identify your potential suitors, or types of potential buyers/acquirers – at least 2, preferably 5 years ahead of your target date in order to be in a position to maximize value throughout the company:

  1. Strategic Buyers – they could be customers, distributors, vendors, even your management team.
  2. Financial Buyers – Financial buyers will look first at your cashflow, growth, management team, risks of ownership, fit in their portfolio, and any transition issues/difficulties they could face
  3. Industry Relationships and Associations can be great sources to explore the right fit, the best fit to achieve your goals for the company, your team, your timeline and your financial future.

Your Management Team

  1. Objectively assess the depth of your team, their tenure and experience, and their (not your own) customer relationships. – In a liquidity event, the buyer or investor wants to know that the company can thrive even more, without you at the helm, with a strong committed leadership team.
  2. Strategic Suitors and Financial Suitors will look at your management team differently. One will value their contributions through the transaction and integration. The other will be depending on them to perpetuate your success and growth well beyond the transaction.
  3. Buyers and acquirers expect that you have many legal elements current and in place to ensure your team will stay with the business including:
    • Non-compete agreements
    • Non-solicitation agreements
    • Employment Agreement – that doesn’t expire for a number of years
    • Transaction Compensation – These are financial incentives for them to stay (stock options, phantom stock, bonuses, a percentage of the transaction itself, etc.

 

If a liquidity event appeals to you and if your objective in that liquidity event is to maximize value to command the highest multiples, start planning now. It takes time to get ‘all your ducks in a row’. And since timing is everything, if you aren’t always preparing to maximize enterprise value, you could miss the window of opportunity when a liquidity event does appear.

 

8 Figure Valuation Roadmap – Registration is Open

If You Desire to Ever Sell, Scale or
Pass on Your Business for $10M+
You Can’t Afford to Wait.
You Need This Roadmap Now

November 6, 2014

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This Way Out Group is offering a full-day interactive and practical session on building value in your business and a timeline of available exit options and strategies.

 

8 Figure Valuation Roadmap with Kerri Salls banner

 

This 8 Figure Valuation Roadmap with Kerri Salls offers you a confidential personal assessment of your business’ value drivers relative to other companies. In addition, this one-day transformation immersion will give you insight, perspective, tools and a roadmap to:

  • accelerate growth and
  • maximize the value of your business now.

 

Tickets

A limited number of Scholarship Discount Tickets are available until September 21.
See the Registration page for details.

VIP Master Pass Tickets offer extensive services and assets before, during and after the event.
Check out the Registration page now for details.

 

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Program

Introduction

  • Starting, growing, adding value and exit planning are an integrated continuum – all are essential to maximize value and monetize your business.


PLAN

  • You can better position your business for amazing growth and increasing value if you start with a plan


STAGE

  • An action plan that adds value to your business immediately and prepares you and your business to attract the highest valuation opportunities


DRIVE

  • The roadmap to drive the process to a transaction to guarantee your transition to reinvention


ACHIEVE

  • Identifying, communicating and testing your reinvention plans. Ensuring that your next venture, adventure, avocation or opportunity is even more engaging, compelling and fun than the business you let go

 

Along the way, we’ll address:

  • Hard skills to maximize value and wealth
  • Soft skills and expertise to monetize every asset
  • Your Next Steps

 

Intended Audience

The 8 Figure Valuation Roadmap is a fit if you are the Owner/CEO/President/Founder of businesses with current revenues up to $30M.

Whether you plan to monetize your business in the next 3-5 years or not for another 3 decades, this program is essential, now. Even if you only have an inkling of what that future looks like, you need this immersion training now.

This program is not suitable for experts, advisors or other company officers.

Seating is limited. Register early for Thursday, November 6, 2014.

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Why This Seminar?

To guarantee you can cash out of your business
to cash in on that life beyond your business,
because of the value you can prove is in your business.

Do You Want To Make The Most Money Possible When You Sell Your Business?

“Do You Want To Make The Most Money Possible
When You Sell Your Business?”

Do You?

If you’re like most business owners, your answer to the question above is a resounding “YES!”  If so, then pay close attention to this message so you don’t make

The 5 Deadly Mistakes That MOST Business Owners Make When Planning Their Exit Strategy!

These easily avoidable oversights can (and WILL) wipe out as much as half of your potential net worth! But, early adjustments will help you maximize your profit when you exit your business.

That’s why I developed my 4 Step Exit Strategy Framework System™ which I’ve now turned into this home-study program Selling Your Business for Maximum Profits.

Tomorrow, Tuesday, May 27, is the product launch for Selling Your Business for Maximum Profits. Watch for an early morning email with the website link AND your promocode to take $1,000 off the regular price.

These easily avoidable oversights can (and WILL) wipe out as much as half of your potential net worth! But, early adjustments will help you maximize your profit when you exit your business.

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

PS This discount promocode will expire on May 31. You must act now to secure your copy of Selling Your Business for Maximum Profits at this special price.

 

Pioneering 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

Pioneering 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.

My gift to you is a pattern shift to early exit planning to guarantee you can cash out of your business to cash in on life beyond your business.

My 4 Step Exit Strategy Framework™ laid out in Selling Your Business for Maximum Profits is easy enough for every busy owner to master and apply to your own business if you take action.

Don’t leave money on the table. Take action now.

In 2 days you can get your own copy of this comprehensive system that will save you time and money and guarantee you can achieve your endgame. You will be able to download all your bonuses (valued in excess of $30,000) immediately.

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

PS – Early exit planning is a revolutionary concept that will help you monetize your business and allow you to cash out before everyone else realizes they need to cash out too – and can’t!

PPS – Watch for the link to Selling Your Business for Maximum Profits on Tuesday, so you can get your promocode discount too!

 

90% of All Business Owners Walk Away From Their Business With Nothing. Early Exit Strategy Pioneer Offers Another Exit Option

Regardless of your timeline, here’s just one critical secret that your transaction advisors wish you knew early, but no one ever tells you!

Whether you want to cash out in 3 years or 3 decades, you must start now to secure your legacy.

#1 Early exit planning is not an option.

Early exit planning can be the difference between a sale at 4-6 times your peak valuation and scrambling too late to get 2-3x your lowest valuation.

Your team of exit advisors will do a great job telling you what to do to prepare for that sale and increase the value of your business before you need their services; but it’s not their job to stick with you, guide you, advise you or keep you accountable to execute along the way.

That’s what Selling Your Business for Maximum Profits does. This self-paced homestudy course will allow you to join the 5% of all business owners who monetize their business and cash out to cash in on their reinvention, secure their legacy and assure their dynasty.

In 3 days you can get your own copy of this comprehensive system.

https://vimeo.com/96035950

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

PS – Do you really want to walk away with nothing? Or do you want to use Selling Your Business for Maximum Profits to give you the structure and leverage to control the process and the transaction to deliver on your dream? Get your copy on Tuesday.

 

Exit Strategy Pioneer Offers Alternative to Help Business Owners Who Close Down With Nothing.

You worked hard to start and grow your business. But No one told you, you would have to work just as hard to monetize the business you’ve built.

Because no one prepared them, 90% of all business owners walk away with nothing! Of the 5% who do get to a transaction, most leave money on the table – and they don’t even know it until 2-3 years later.

Imagine – what if there were a solution to this pervasive situation? Wouldn’t you want to learn how to maximize the value of your business, avoid leaving up to 50% of that value on the table, and ensure you achieve the reinvention you’ve dreamed about?

Now if you were wondering how you can do just that yourself, then you will want to take a look at this new program: Selling Your Business for Maximum Profits coming in 4 days!

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

PS You can ignore this email and be assured of leaving money on the table. Or you can anticipate achieving accelerated growth and maximum value for your business when you choose to cash out because you apply everything I’ve included in the Selling Your Business for Maximum Profits system. You can grab your copy in 4 days.

 

Introducing Selling Your Business for Maximum Profit

Did you know Your real wealth isn’t in starting your business. It’s in how you exit.
– Kerri Salls

On Tuesday, May 27, I am releasing the long anticipated complete system: Selling Your Business for Maximum Profits.

I launched my first business in 1988 after a decade of multi-million dollar successes for Fortune 500 and smaller companies.

26 years later, my industry leadership has turned into a revolution to transform exit planning with a new paradigm focused on you. My workshops trigger one consistent response,

https://vimeo.com/96035949 

On Tuesday, May 27, I am releasing the complete system: Selling Your Business for Maximum Profits.

In it, you will learn my revolutionary approach to guarantee you can cash out of your business on your terms and on your timeline.

When you order before June 1, use the promocode: May 2014 to get an introductory discount of 33% off the full price of the system.

Affiliate opportunities available. Send inquiries to emails@thiswayoutgroup.com Subject: affiliate

PS – Watch your email for the next 6 days for more information and the link to use when the site opens on Tuesday, May 27.

How to Set Goals That Ensure a Successful Exit Strategy

It takes a big commitment to start and grow a business.

You need to be clear on your mission and vision, business model, market research, marketing and sales strategy, and operations to implement your business plan.

You take risks and set goals.

You can be consumed by the day-to-day responsibilities and urgent demands.

All of this eats up time.

There’s another critical piece that gets put off but is as essential to achieving your long-term goals. That is your exit strategy. If you include your exit strategy as part of your initial goal setting, then all of your goal achievements will line up and lead toward your ideal exit strategy and you will have a much greater likelihood of monetizing the business you built. Here are a few guidelines to start:

  1. Choose the right exit strategy for your goals
    You have monthly and annual goals for your business. Commit to these intermediate goals only if they are aligned with your long-term goals and the ultimate goal achievement of your ideal exit strategy. Otherwise, they take you down rat holes or dead end tangents.
  2. Set business growth goals aligned with your exit strategy
    Your growth goals are essential to the health, strength and survival of your business. Look at your growth goals in the context of the exit strategy you want to implement. Be sure your growth goals are taking you in the same direction. Growth that is in conflict with your exit plan or competes with your long-term goals will hurt the business and limit your ability to achieve your exit strategy.
  3. Identify goals to increase value
    The value of the business is not just in terms of assets or cash flow. It’s also in your intellectual property. A lot of your intellectual property is stuck in your head. Your intellectual property could also be in your team, your processes, and in the relationships you cultivate and maintain with clients and vendors, etc. So your objective to increase value before your exit could be to capture the intangible value in these less quantifiable areas. This will translate into a much higher valuation of the firm.
  4. Plan your exit strategy by intention rather than by default
    This sounds like a lot of work. In fact, it is. Nevertheless, if you don’t do the work to plan your exit – your dream of achieving an ideal lifestyle, living your legacy and leaving a dynasty – then you are abdicating both the responsibility and the reward. If you don’t plan your exit by design, then you will settle for what you get by default.
  5. Systematize your exit strategy to maximize value
    The more you can systematize your business so someone else can run it equally well without you, the more a buyer will be willing to pay you to keep it going.

    The better you are at systematizing everything, the easier it is for a broker to pitch and leverage that value for a higher price. This step takes discipline and consistency that starts long before you intend to exit.

That’s how you ensure your own successful exit strategy.

Stagnant 95% Statistic

It’s devastating. Ninety-five percent of all businesses never achieve their goals for the business and beyond, not to mention the long-term financial expectations for their families. This 95% statistic is widely accepted as an unchangeable fact and “the risk of doing business.

I can’t understand why it is still the accepted norm. Just like you confront and address every other risk you face in business, why not illuminate this gap, address it and fix it. I want to help you minimize the risk and overcome this statistical barrier to your success, to fulfill your dreams.

The core causes of this problem have been around since you launched your business. The solutions aren’t easy but they are so inexpensive that you can afford to implement every one and still stay within your budget. The key is, that we must reveals the flaws of businesses today and owners’ biggest self-imposed barriers.

The solution I present is a system that builds a strong foundation for your business, whether:

  •  You are just starting out, or you’ve been in business a while
  •  You have a team or no team
  •  You have revenues less than $100K or more than $10M
  •  You are on a fast-track to be acquired or want to cash out to pursue your reinvention

When you systematize your entire enterprise for long-term results, it will transform your business and your life. You will gain time, control, freedom and flexibility all while the business prospers, grows and breaks through to achieve new heights of success you didn’t dare dream of – until now. Everything you do to accelerate growth and maximize value makes the business more buyer ready and buyer attractive.

If you are in business delivering product, content or services, then you have a few options to grow your business exponentially. Simplistically, your choices are to:

  •  increase the number of clients
  •  increase the volume you sell/client
  •  increase prices
  •  decrease costs
  •  or a combination of these four

When you take action to build a sale-able business, you join the 5% who successfully complete the transaction and transition to their reinvention.

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