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Exit Planning Articles by John F. Dini, CBEC, CExP, CEPA
John F. Dini, CBEC, CExP, CEPAPresident, MPN Incorporated
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John F. Dini develops transition and succession strategies that allow business owners to exit their companies on their own schedule, with the proceeds they seek and complete control over the process. He takes a coaching approach to client engagements, focusing on helping owners of companies with $1M to $250M in revenue achieve both their desired lifestyles and legacies.
Recent Articles posted by John F. Dini
| Recent Articles posted by John F. Dini |
Prepared for 2023 – Is This the Year to Exit? What does being prepared for 2023 mean for business owners who are approaching, at, or already beyond normal retirement age? It’s become fashionable to pontificate about the “inevitable” recession in the coming year. There is an argument for not talking ourselves into making it happen. Unfortunately, there are indisputable reasons why it is going to occur regardless of whether we discuss it or not. Inflationary stimulus (including $6 trillion of ”quantitative easing”) in the US, combined with over-dependency on Russian gas supply in Europe and falling industrial production from COVID lockdowns in China have created the proverbial slow-motion car wreck for the world economy. All ... Read more Owner Obstacles to an Exit Plan Owner obstacles to the implementation of an exit plan are often unconscious, but they can be dramatic. Their attachment to the business can be difficult to break. An advisor spends a lot of time and energy developing the vision for life after ownership in the hopes that it is far more attractive to them than their current role in the business. Yet no matter how well developed that vision is, or how well defined the action steps are, it isn’t unusual to find owners who behave in a way that ultimately sabotages the plan. Sometimes their actions are even intentional, but more often they aren’t. ... Read more Entreprenuers Don’t Use Rearview Mirrors All business owners are goal oriented. From the day you founded or assumed control of your company, you set targets and achieved them. That is why you are successful. You know how to define a goal and make it happen. If I asked you to tell me the best thing that you did in the business three years ago, you’d likely respond with, “I have no idea.” or “Why would I know that?” or “Who cares?” You are busy looking forward. I’ve even had some owners get angry. They feel some obligation to know the answer, and that they are somehow failing a test if ... Read more Avoiding the "Exit" Word Owners don’t like the “Exit” word. They tell us regularly to change it, or that talking about it is uncomfortable. It’s the elephant in the room. I understand. Anyone selling life insurance or funeral pre-planning knows that you don’t start with “So, let’s discuss what happens when you DIE.” For business owners, leaving the business is like a little bit of death. That’s why black humor in the exit planning world goes like this. “There are seven ways to exit your business. Six of those are head first.” Your company has been the central focus of your life for twenty or thirty years, and perhaps ... Read more Main Street Business and Middle-Market A common area of confusion among both business owners and advisors is the difference between a “Main Street” business, a “Middle Market” business, and a “Mom and Pop” business. Main Street Businesses The International Business Brokers’ Association and other professional intermediary organizations define “Main Street” as any company with a Fair Market Value of less than $3,000,000. That is about the upper limit of a business that can be purchased by an individual using “normal” 20% down financing. He or she is acquiring for the purpose of earning a living. Main Street businesses typically calculate cash flow as Seller’s Discretionary Earnings (SDE). As discussed by ... Read more |