Posts tagged with: maximizing value

A Way to Help You More Directly with Your Exit Plan

how can we help?

If you’re company is large enough, if you’re open minded enough, if you’re committed to maximizing the value in the business to produce more wealth for you, and if you’re excited about the possibility of making the shift to doing more, solving more, winning more, and succeeding more; there are a number of ways I can be more directly involved in guaranteeing your future dreams come true.

There are many ways I work with clients:

  • Personal Advisory Relationships – Mentoring, Not Coaching
  • Customized Business Relationships To Fit Your Strategic/Exit Needs
  • 1 Day Fee-Based
  • 12 Month Fee-Based
  • Long Term relationship to see you through the transaction and transition to reinvention

I bring the most value to your business and your ultimate wealth, when we build a long-term relationship. It won’t be worthwhile if I’m bamboozling you, or I drop the ball or you hate my guts. I would have nothing to gain there and everything to lose. I am more long-term oriented rather than a rush at the end.

When you wait until the last 6 months before you want to get out to start thinking about how to get your money out of the business, or to figure out what it’s worth, or more importantly how much money you need out of the business to move on to your next venture, travel, avocation or hobby, here are the trade-offs you signup for:

  1. You have fewer choices
  2. Your valuation will be lower
  3. You have less time/options to make the business buyer attractive
  4. You leave 30-50% of the value of the business on the table
  5. The buyer holds all the cards
  6. It’s much harder to complete a transaction that produces your financial freedom
  7. You and the business take a bigger tax hit
  8. The business may not survive the transaction
  9. The buyer will limit the cash you get out up front
  10. The buyer will require your participation, expertise for an extended period of time
  11. You risk walking away with not enough to fund your reinvention dream
  12. Your reinvention plan has not been tested and you don’t have the next 180 days booked solid.
  13. Your wealth advisor is ill-prepared to maximize your wealth to ensure your financial future.

So your challenge is to grow the business, add value to the business and make the business buyer ready before you implement your contingency plan, succession plan, or transition plan.

 “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

Top Dollar Strategies to Sell Your Business

Why would you ever want to sell your business? The best reason is that you’ve accomplished everything you set out to do. So when you sell, you want to be sure you’ve done everything to assure you command top dollar.

To sell your business for top dollar, be diligent applying these three strategies:

  1. Prevent Seller Neglect – Just because you’ve decided to sell, doesn’t mean you can neglect the business. You must do everything you can to increase sales, momentum, and customer loyalty right through the exit process until the transaction is done.

You must keep you eye on current and forecasted sales. Your buyer will pay more for the business with proven increasing sales and forecasted accelerated growth than for declining or stagnant sales with nothing new in the pipeline.

  1. Remove yourself from day-to-day operations of the business. You need the buyer to see that the value of the business he’s buying is in the business, not in you. To maximize the value of the business, you must demonstrate the business can be self-sustaining without your daily presence. They need to see customers, your team, your vendors engage and commit to do business with your company because of the business, not you.

To do that, train your management team to take on all your responsibilities (not cold turkey but over time). Build the infrastructure to support them to do everything you’ve always done. The more systems, structure, processes and procedures you have, the more valuable the business. You can monetize every operational task and responsibility that you delegate and transfer to your team.

  1. Reduce the personal perks and benefits you take from the business. There are many ways that small business owners can have the business pay for conveniences and luxuries. However, when it comes time to sell your business, buyers will be willing to pay well for your profits. So if you are taking money out of the business for personal expenses (legally), you are reducing profits. That’s not appealing to them.

When it’s time to sell, separate your personal and business expenses. Stop using the business to bankroll family dinners, vacations, cars, country club memberships.

Maximizing value is the key to selling your business for top dollar.

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