From 2007 to 2020 the exit planning space primarily focused on the immediate market: The baby boomer business owner and changing their outcomes. Outcomes which we know even still today are horrible. Statistics shared from research conducted through the State of Owner Readiness Survey and other sources indicate that:
- 70% of businesses put on the market today do not sell
- 75% of owners profoundly regretted selling their business just a year after selling
- 94% of owners have done no personal planning
- 50% of owners have done no planning at all
And this list goes on. Though most of the owners surveyed indicated they were in fact baby boomers, almost all owners fall right into the unprepared for transition category. All business owners likely experience the same troubles or pain points. They become the centers of their business, they are extremely passionate so tend to work long hours in their companies and have little life balance and personal purpose. They think of exit strategy as something you do when you get ready to sell your company. But the truth is, the process starts long before that. Review the following pages in this section to learn more about how a Certified Exit Planning Advisor (CEPA) can help bring your business to a level of Best-in-Class, ensuring a profitable tenure and a successful transition when the time is right, and on your terms.
Understand the value of your business today, the potential it has tomorrow and how to get there.
What makes your business valuable? It is likely that 80% of your company's value lies within the four Intangible Capitals or 4Cs. These Intangible Capitals consist of Human, Social, Customer, and Structural Capital.
Many business owners wonder how much their business is worth and how they stack up against their competitors.
During the exit planning process, a consultant must balance an owner's business, personal, and financial needs.
Successful exit strategies follow two concurrent paths. The business improvements path and your personal and financial planning path.
What's your business worth? Whether you're buying, selling, merging or borrowing valuing your business is the first step.