Build Value Archives - Your ExitMap

How a Business Owner Can Effectively Plan Their Exit

Steven Zeller — Fri, 20 Oct 2023 13:45:09 +0000

Many business owners are finding it difficult to retire or transition out of their business due to a lack of exit planning together with a challenging economic environment. Shrinking cash flow, net income and credit have forced owners into fight-or-flight mode. Several companies have successfully compensated by trying to expand sales and cutting costs. Many small to mid-sized companies, however, have experienced a drop in value, with no end in sight. Owners are also entering the chapter in their life when exiting their business in one way or another is becoming more probable. Unfortunately, the business may not be currently worth what they need it ... Read more

The post How a Business Owner Can Effectively Plan Their Exit appeared first on Your ExitMap.

Impressions of Value in Exit Planning

John F. Dini — Tue, 18 Apr 2023 13:24:16 +0000

Business owners, advisors, and buyers frequently have widely different impressions of value when it comes to a business. The Pepperdine Private Capital Markets Survey canvasses intermediaries who sell privately held Main Street and mid-market companies. One question is about the obstacles that prevented the sale of a business. The number one response is “Owners’ unreasonable expectations of value.” That may be self-serving or an excuse. Nonetheless, valuation is a sensitive subject. Many owners have worked in the business for 30 or 40 years. They assume it will fund their next 20 years of retirement. Their target price is set only by their desired lifestyle after ... Read more

The post Impressions of Value in Exit Planning appeared first on Your ExitMap.

Key Employees: Build and Protect Business Value

Pat Ennis — Fri, 12 Nov 2021 20:18:33 +0000

Key Employees You may have people working in key roles who are instrumental in growing and building the value of your business. These key people can be identified as having the following characteristics: Makes a substantial business contribution Possesses critical information or knowledge Maintains and nourishes key contacts and relationships Sellable Business In helping clients plan to build a sellable business, and then eventually exit on their terms and conditions, we emphasize that “key people are a key value driver” in realizing success in both of those strategic goals. And, we find it helpful for owners to have two categories in mind when considering key ... Read more

The post Key Employees: Build and Protect Business Value appeared first on Your ExitMap.