Maximize the Value of your Business!
A Successful Exit only occurs if you Make It So!
I get it! It is hard to look up sometimes, to see the path ahead, when you are so busy making your business succeed right now. But we all know that the future that we desire, for our business, ourselves, and our family, does not happen all by itself. We need to take charge of the future of the business, or before you know it, the future will be here!
Every business owner should have a vision for their exit, whether they are 25 or 75. Obviously, a young entrepreneur may have a different timeframe than someone who is thinking about retirement, but either way, it is vital to understand the long-term goals for your enterprise. If your target for selling your business is within 5 years, you need to be going beyond thinking about selling, and take active steps to plan this exit.
83% of small business owners in the US have no documented Transition Plan. Yet, more than 80% of all owners over 50 plan to exit within 10 years! More startling is that despite having an operational business, fewer than 20% will actually sell.
Let’s ensure that yours will be among the 20% when the time comes!
Most owners have 50-90% of their net worth tied up in their business.
Will you get the value out that you deserve when you need it?
It is difficult for one person or company to help you with all the aspects of getting to this Exit, from valuing your business today, and identifying the criteria that defines this value, to setting up a specific Exit Strategy and Plan, to execution of this plan, to finding and negotiating with potential buyers. You may also need specialists to help with Tax and Estate planning around the upcoming exit, or to help with financial structures of Succession Planning. Rather than trying to do it all, I will connect you to resources that have proven experience in each of these areas.
This great article in Forbes breaks the process into four phases:
- Soul Searching
- Assessment and Planning
CHAZM is your partner for the Implementation phase. In addition, we have great relationships with experts that can help you with all other aspects of the valuation, exit planning, estate and tax, and the actual sell. See our list of referral partners below. If you are ready to Maximize the Value of your Business, please contact us!
Engaging an operational consultant to help you execute your Exit Plan can be very advantageous for a Business Owner. Whereas every hire you make, such as a COO, directly adds to payroll expense, your investment in a consultant, such as a fractional COO, is considered a one-off expense, and can be added back in the calculation of your company’s value to a new owner.
— Gregg Kunz, Principal Broker, Rocky Mountain Business Advisors, Inc.