71% of business owners have no formal exit strategy or succession plan. (Source: Nebraska: State of Owner Readiness Report). To realize the best possible outcome when transitioning out of your business, preparation is a must.
75% of business owners regret their exit one year after leaving (Source: The 2019 State Of Owner Readiness, The Exit Planning Institute). The number one reason for regret: they realize after the fact that they left money on the table because they did not maximize the value of the business at the time of exit.
When you build a business that can thrive without your day-to-day involvement, you create a business that provides options.
Creating a valuable business with a high transferable value has many advantages. The same metrics that make a company valuable to business buyers also make the business more predictable, more profitable, and offer more freedom for the owner.
In one word OPTIONS. You started your business to be “the captain of your own ship” so to speak. A business that is valuable in the marketplace will be more enjoyable to own and also have a high transferable value. If your goal is to back-off or back-out, a business that can operate without your day to day involvement is advantageous in many ways.
The best time to prepare an Exit Strategy is before you need it. The reality is unexpected events can and do happen and it is better to be prepared for situations that may affect your business.
Many business owners procrastinate on exit planning and regret it when they want to transition out.
With the proper exit planning and execution, results can be seen fairly quickly. With that understood, it is important to understand that to significantly increase the value of your business by 30, 50, or 70% can take 2-5 years or more.
The monthly time commitment to implement an exit strategy can range from 2-8 hours.
You’ll want to begin by benchmarking where you are now.