What is Exit Planning?
Exit Planning is the process of helping business owners exit their business. It is much more than just selling a business through a standard business broker. It starts with nurturing the business to optimise its value, assists with the personal readiness of business owner to transition to life after business, and concludes with selling the business for maximum value or passing it on to their family.
Why should I exit my business?
All business owners will exit their business. The question is when and how.
The difficulty is that business owners are in the business of building businesses not exiting them. And they have worked their lifetime to accumulate their wealth, only to have it remain in illiquid form until an exit strategy is executed. Adding to this is the perception that the exit process is overwhelming and complex. With so much information to be processed in a business exit, many owners procrastinate about doing anything. Often this results in a failure to plan an exit and results in a loss of the hard-earned wealth in the illiquid business.
At Exit To Success Consulting, we help you design and implement the exit strategy that best fits your individual goals and give you peace of mind.
Why should I choose Exit To Success Consulting?
Exit To Success is a boutique consulting business specialising in helping business owners exit your business and unlock the hidden value in the business. Our team comprises expert advisers with strong skills and experience within the business, finance, legal, taxation, insurance and personal transition disciplines. We have a reputation for success and utilise our proven Four Stage Model to provide a tailored solution to suit your specific needs.
How much does the exit planning process cost?
The cost of the Exit Planning Process for a business varies from client to client depending on the business size, the condition of the business and the owner’s goals and objectives. As a general rule, the investment you will make in optimising the business value is returned many times over through the process. Please speak to an Exit To Success Consulting adviser for more specific information.
Why should I start my business exit now?
The key to your successful business exit is ensuring that the value of your business is optimised when you are ready to sell. This cannot be done overnight and it cannot be done without proper planning. In our experience, this process generally takes two to three years to produce best results. If you want to use the equity that you have built into your business to fund your future lifestyle, you need to plan now to ensure the value locked in your business is available to you upon exiting.
How do I determine the value of my business?
Most business valuations start with an assessment of its current profitability and the factors that make it attractive to potential buyers. These factors include:
- The profitability, cash flow and financial position of the business
- The internal processes are well documented, effective and sustainable
- The business is structured so that it is not heavily reliant on a few key employees.
- The industry in which the business operates is attractive
- The business risks and future prospects of the business
At Exit To Success Consulting, the exit process commences with an independent business valuation to give an accurate assessment of your current business value.
How do I find a potential buyer?
Exit To Success Consulting will working closely with the business owner to proactively identify potential buyers. These are often found from the business’s exiting competitors, larger customers or larger suppliers.
- Prepare and circulate the memorandum of information
- Identify possible purchasers
- Get the selling process underway
- Oversee negotiation and Due Diligence
- Ensuring the completion of Sale
What makes an attractive business?
A potential buyer ‘s paramount consideration is to review the likelihood that the business will continue to maintain it’s current profitability under new ownership. The following questions will support this review:
- Is the business currently profitable with a history of proven results?
- Does the business rely heavily on a few key individuals and are they committed to the business for the medium term?
- Are the internal processes well documented, effective and sustainable?
If you have positive answers to these questions, then your business should be in demand.
Through a detailed information gathering process, we will be able to identify the key business and personal action steps that need to take place as part of the Exit Planning Process.
To engage Exit To Success as your Certified Value Builder and access The Value Builder System, please contact us on 0419 014 897 or firstname.lastname@example.org.