Most business owners consider themselves to be the final authority on their companies. They believe they know everything there is to know about their companies, all the advantages, nuances, and peculiarities. However, they are in for a rude awakening when a buyer and their advisory team steps in to conduct their due diligence before finalizing …
Due Diligence: Building a Diligence-Ready Company Read More »
Most business owners assign themselves final decision-making authority for their companies. But what happens if you’re away for a couple of days and there’s a crisis requiring a decision? If you were to represent your role in your company visually, where would you put yourself? Are you at the helm, steering your business and solely …
Being the Face of the Company Can Hurt Your Business Read More »
Business owners often delay the exit planning process until forced by circumstances because they do not appreciate the benefits of starting early even though they know they must eventually leave their companies. Owners of new businesses have the excuse of focusing on growing their businesses, but it’s never too early to start exit planning, no …
Business owners often rely on their gut estimates when calculating the value of their companies. Their attachment to the business usually makes them overestimate that value. A value with no basis in complex data cannot form the basis for a long-term strategic business plan or an exit plan. Hire expert business valuation advisors to calculate …
An exit planning advisor should ease the experience of selling a business. They explain, initiate, and guide business owners throughout the planning process. They also help their clients understand that their own business and personal goals dictate the path to a successful exit. They meet with a business owner to gather information, establish their exit …
Many M&A transactions fail during exit planning, usually due to poorly or hastily executed due diligence. Do not underestimate the importance of due diligence: the M&A deal depends on it. The Importance of Due Diligence in an M&A Deal Due diligence is a process that examines every aspect of the target company (i.e., the company …
How Transactions Fail and How Pre-Diligence Can Help Read More »
There are only two types of financial advisors: good and not-so-good ones. They have similar credentials, training, experience, so what really separates them? If you look closely, you will notice good financial advisors have a long list of loyal clients, and their services are coveted, whereas a mediocre one struggles to find new clients. If …
The majority of your company’s net worth comprises the value of your business. Preserving that value is necessary to achieve your financial goals after your business exit. When a business owner focuses on increasing value, it often makes the timing of the exit critical, as the business is ready for sale or ownership transition only …
Conversations You Should Have Before Creating an Exit Strategy Read More »
Your role in exit planning is critical. From initial data collection to final implementation of strategic plans, you have a lot on your plate, leading and coordinating business owners’ entire exit planning process. Your role in a business exit simply cannot be understated. We know that business owners want to exit with financial security and …
A business becomes successful by creating value for its owners, customers, and employees. As a small- or middle-market business owner, you define your company’s specific values. You may want to benefit your employees and the community and achieve personal and financial goals. Whatever your values include, you must define them clearly and in detail. It …
