Your ExitMap Blog gathers contributions from top exit planning professionals across the country that are indexed into four categories. They include select strategies for planning your exit, ideas for building your company’s value, transfer options you can choose from, or preparing to enjoy your post-exit lifestyle. This page shows the most recent posts from Your ExitMap Blog. If you are seeking a qualified exit planning professional, you can view a map of specialists here.

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Most Recent Your ExitMap Blog Articles

Most Recent Blog Articles

Video on Preparing for Your Exit Plan I contributed this video interview about preparing for your exit plan to SuccessionMatching.com for their recent Summit. It is about preparing what you need before starting your exit planning process. Succession Matching has made it available for free for another week. (requires creating a user name and password)   I hope that you enjoy it. Invest 15 Minutes and take our FREE Exit Readiness Assessment. We do not request any confidential information. 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 ... Read more Exit Planning Choices Podcast I had a nice conversation, on exit planning choices, in 2019 with Pat Ennis of Ennis Legacy Partners and Walter H. Deyhle of Gelman, Rosenberg and Freeman,CPAs, both in Maryland. Learn about your choices when preparing to create and implement your exit plan. Exit planning is about choices, get to know the choices that you have. Thanks for the invitation, Pat! You can listen (25 minutes) here. I hope that you enjoy. Invest 15 Minutes and take our FREE Exit Readiness Assessment. We do not request any confidential information. John F. Dini develops transition and succession strategies that allow business owners to exit their companies ... Read more San Antonio Business Journal Leadership Trust I just had my first article published for the San Antonio Business Journal Leadership Trust. Please take a look: https://www.bizjournals.com/sanantonio/news/2019/03/26/planning-your-business-transition-heres-what-you-should-consider.html?iana=cco_landing_news The Unplanned Exit One of the least-heralded benefits of exit planning is preparation for an unplanned exit. In the brokerage business, the reasons driving the listing of a company are known collectively as the Dismal D’s. Some of “Da D’s” are just typical reasons behind putting a business up for sale. They include Dissension among partners, Declining sales, Divorce, Disinterest by, or Distraction of the owner and Debt. Others are the driving force for an emergency sale, usually far below the fair market value. Those are Disaster, Disease, Disability and Death. As we’ve said many times before in this space, sooner or later every owner leaves his or ... Read more Time Frames for Exit Planning Time frames are one of the most critical, challenging and frightening factors in planning your exit. At the same time, they are one of the most flexible factors in your plan. How can something be this important and still be fungible? When we interview an owner, one of our first questions is about time frames. Note that they are plural. The first is when you want to step away from daily management of the business. The second is when you want to leave entirely. Those questions  also lead off our exit preparedness Assessment, the ExitMap®, and impact the scoring on many of the other responses. When ... Read more Exit Planning: Controlling Your Choices Many owners are reluctant to plan for their departure from the business. In some cases it’s because they are too comfortable with ambiguity (see my previous post.) For others it is because they fear losing control. They believe that setting a final date for their departure, even tentatively, starts a process that will take on a life of its own. The tag line of this column is “Control the most important financial event of your life.” Control is the key. Refusing to deal with the realities of an eventual transition from the business is surrendering control. Sooner or later, something will happen that requires a transfer of the ... Read more Ambiguity Kills Value Ambiguity kills value. That was a key point in a white paper from Orange Kiwi that I read over the holidays. Taken from the PhD thesis of Dr. Allie Taylor, the paper describes the psychological profile of  entrepreneurs, and their historical reluctance to begin an exit planning process. According to Dr. Taylor, entrepreneurs have five major behavioral traits; Risk Taking, Innovativeness, Need for Achievement, tolerance for Ambiguity and a locus for Control. This follows closely my description of the mind of an entrepreneur in Hunting in a Farmer’s World. In that book I discuss the traits of tenacious problem solving and the ability to navigate in the ... Read more Four Basics of Exit Planning 4: Professional Team Your professional team is the fourth component of exit planning preparation. We’ve already discussed valuation, distance to goal and classes of buyers. Taken together, these basics aren’t enough by themselves to execute an exit plan, but understanding the first three and assembling the fourth will go a long way to ensuring that any plan you develop is practical and achievable. Many clients say “No problem. I already have a lawyer and an accountant.” But your professional team should be able to offer more than just technical advice. Any competent CPA can tell you what the difference is between ordinary income tax and capital gains. Far ... Read more Four Basics of Exit Planning 3: Know Your Buyer Know your buyer? Your initial reaction to this title may be “How can I know my buyer? I haven’t even decided to sell yet!” Nonetheless, understanding the type of buyer that your company will attract is vital. More importantly, gaining that understanding long before you go to market will impact many decisions about how to run your business between now and when you start to actively market the company for sale. The classes of buyers are not interchangeable. I once worked with the owner of a subcontracting company. He told me “I want to find a strategic buyer. I know they pay higher multiples than anyone else.” That’s nice ... Read more Four Basics of Exit Planning 2: Distance to Goal Once you understand your company’s value, the next step in planning is to calculate your Distance to Goal. As the Cheshire Cat said, “If you don’t know where you are going, any road will get you there.” “Any road” is not the way you want to approach the biggest financial event of a career. Distance to Goal calculations require an understanding of where you are now, where you want to wind up, and how long you need to get there. In both industry surveys and my own experience, the majority of business owners have (at best,) only a rough idea of the road they will ... Read more « Newer EntriesOlder Entries »