Frequently Asked Questions...
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Why should a business owner have an Exit Strategy Plan?
The Exit Strategy Plan enables an owner to have CONTROL:
- Will enable an owner to leave when they want to leave.
- Will enable an owner to achieve optimum after tax value.
- Will enable an owner to preserve the value of the business in case of an unexpected event.
- Will enable an owner to assure the financial security of the family.
What is the most critical element for a successful Exit Strategy Plan?
The most critical element of a successful Exit Strategy Plan is TIME. Success is considerably enhanced the earlier an owner begins the process; at least 3 to 5 years prior to the planned departure date. Because it may take time to:
- Implement management team development programs.
- Develop and implement strategies to increase cash flow enabling the business to meet value expectations and the owner's exit objectives.
- Implement tax minimization and asset protection strategies.
- Derive the benefits from wealth transfer strategies.
Who should consider having an Exit Strategy Plan, what's the profile?
I define the profile as a threshold:
- A business owner or co-owner regardless of age.
In a profitable business with revenues of at least $3 million. - Professional organizations (doctors, engineers, architects, insurance agencies, etc.) are not defined as to sizes but need to be profitable and have developed a brand or value that is transferable.
- Any business owner approaching or exceeding the threshold should seriously consider starting the process if they do not have an Exit Strategy Plan.
What do you do?
I work collaboratively with a business owner's trusted advisors in developing and implementing Exit Strategy Plans. A plan based on the owner's objectives that coordinates and integrates Business Planning with Estate Planning enabling the owner to achieve optimum after tax value.
What do you mean by collaboratively?
At each stage after completing due diligence, I summarize my findings and possible solutions. Then I present these findings initially to the trusted advisor or advisors. The reason is simple:
- Obtaining the buy-in shortens the process and reduces cost.
- Owner may not be aware of a problem which means the trusted advisor will not be aware.
- Often times the trusted advisors have adjustments and improvements.
- Owner may have inadvertently omitted important facts.
- Once we have consensus then the findings are presented to the owner.
I work collaboratively with a business owner's trusted advisors in developing and implementing Exit Strategy Plans. A plan based on the owner's objectives that coordinates and integrates Business Planning with Estate Planning enabling the owner to achieve optimum after tax value.
What are your qualifications?
- Involved in ownership transition in one phase or another throughout my 35 year career as a lender, an advisor, a buyer and a seller.
- Involved in over a 100+ transactions; thorough knowledge of the process.
- Performed due diligence on 100s and 100s of companies in a broad range of industries. Can quickly assess what seems to work and what does not and know which questions to ask to confirm.
- Know what I don't know and have valuable resources that I can call upon.
What is unique about your service model?
My model is unique in that "Exit Strategy Planning" is the only service I provide. As a valuable resource for trusted advisors I am:
- Always in your client's corner helping with the single most significant financial event of an owner's life.
- Utilizing a proven comprehensive process in developing Exit Strategy Plans.
- Completely transparent, avoiding any potential conflicts of interest.
