exit readiness for seminars nov09
DESCRIPTION
Exit Readiness PP Presentation for potential clients and referrorsTRANSCRIPT
CBACANInc.
Creative Business Advisors
Exit Planning Strategies
Executive Business Coaching
Enhancing the Value of Your Business
Exit Planning - NOT
Planning your exit from the parking lot of Scotiabank Place after a Sens hockey game.
Rental Property
If you didn’t wake up tomorrow
What would happen to your business?
Begin With the End in Mind
Start Exit
Every Business Owner’s Goal
To Sell the Company
Exit Ready = Maximum Value
Don’t Sell a Fixer Upper!!
Did You Know• Baby Boomers are reaching retirement• Successful Entrepreneurs ready to sell
• 40% of Business Owners plan to sell their business within the next 5 years
Law of Supply & Demand
• There will be a crowded marketplace
• Your business must stand out
Selling Your Business isAll About Risk!
• The higher the risk, the lower the valuation
• The lower the risk, the higher the valuation
• Risk refers to the relative risk a buyer feels if he were to invest in your company
How Do You Get More MoneyFor Your Business??
Lower the Risk Levels!
• Risk is derived from two indexes
– The relative attractiveness of your business to an end user.
– The readiness level of your systems and documentation to be open to scrutiny by a potential buyer.
What is Required?
• Prepare an Exit Plan at least 12 to 24 months prior to selling
• Develop checklist of the things to do to make your business more attractive
• Implement the correct documentation and systems you will need to have in place
• Establish a monitoring system
CBACAN
• Prepare an Exit Readiness Report
• Pinpoint Areas Requiring Improvement
• Establish Timelines For Improvements
• Define Monthly Deliverables
• Implement a Weekly Scorecard
Exit Readiness Index
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Valuation Expectations
Personal Expectations
Shareholder Goals
Payment Considerations
Immediate Value Readiness
Credibility and Justification
Brand Issues
Marketing Documentation andSystems
Employee and Management IssuesFinancials
Management Systems andForecasts
Company Documentation
Intellectual Property
Contracts
Personal Knowledge
Systems Processes andDatabases
Compliance Issues
Valuation Indicator
What Makes a Business Attractive
• Buyer looks for a return on investment
• Based on steady growth of profits
• Steady growth of revenue
• Low risk of continuing this growth
• Business is NOT reliant on the owner
• High industry growth trend
The Benefits of the Plan
• Profits Are Maximized
• Business Value Is Enhanced
• Employees are Happier
• Business Is Ready To Sell
• Target Sales Price Can Be Achieved
Maximum Value
Profitability
+
Sustainability
+
Transferability
Ensure Your Business is
• Built to Last For Decades
• Ready to Sell Tomorrow
Remember The Fixer Upper?
Sell For Maximum Value
A Successful Exit
• Maximizes net sales proceeds
• Provides desired retirement income
• Implements estate planning strategies
• Assets are protected
• Ability to enjoy life after sale
This is Exit Readiness
Don’t Delay
CBACANInc.
Creative Business Advisors
Free
Exit Readiness [email protected]
613-563-1085Enhancing the Value of Your Business