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Understanding and Maximizing Business Value


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This presentation is for business owners who are interested in building and maintaining value in their company with an emphasis on positioning the business for transition, and exit plannig.

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Understanding and Maximizing Business Value

  1. 1. Understanding and Maximizing Business Value Michael F. Coyle, CBI Principal/Exit Planning Advisor, CenterPoint Business Advisors
  2. 2. Michael F. Coyle, CBI <ul><li>Principal, CenterPoint Business Advisors, Inc. </li></ul><ul><li>Exit Planning Advisor, Business Enterprise Institute </li></ul><ul><li>Certified Business Intermediary (CBI) Awarded by the International Business Brokers Association </li></ul><ul><li>MBA – Boston College, Carroll Graduate School of Management </li></ul><ul><li>Serial Entrepreneur </li></ul>
  3. 3. Center Point Business Advisors, Inc. assists the owners of small to mid-sized businesses in planning for and executing the most important financial event of their lives...the inevitable exit from their business. <ul><li>Advisory Market </li></ul><ul><li>Valuations </li></ul><ul><li>Certified Business </li></ul><ul><li>Appraisals </li></ul><ul><li>Machinery & </li></ul><ul><li>Equipment Appraisals </li></ul><ul><li>Value Drivers </li></ul><ul><li>& Detractors </li></ul><ul><li>Strategic & </li></ul><ul><li>Project Specific </li></ul><ul><li>Sale to 3 rd Parties </li></ul><ul><li>Transfer to Family, </li></ul><ul><li>Employees or Partners </li></ul><ul><li>Recapitalization </li></ul><ul><li>with Private Equity </li></ul>
  4. 4. During This Session You Will Learn: <ul><li>What is the Underlying Purpose of your Business </li></ul><ul><li>What is the Reality for Most Small Business Owners </li></ul><ul><li>What are the Components of Business Value </li></ul><ul><li>What are Common Value Drivers & Detractors </li></ul><ul><li>Key Strategies for Improving Business Value </li></ul><ul><li>Exiting Your Business is Inevitable, Plan for It </li></ul>
  5. 5. The True Purpose of Your Business <ul><li>Is to Give You Life </li></ul><ul><li>Michael Gerber, The E-myth Revisited , other E-myth Books </li></ul><ul><li>The Entrepreneur * The Manager * The Technician </li></ul><ul><li>Run your business to exit it, realize value to support your life’s objectives </li></ul><ul><li>Importance of creating systems & extracting the business owner from the day-to-day </li></ul><ul><li>Working “ON” and not “IN” your business </li></ul>
  6. 6. The Reality For Business Owners <ul><li>Exiting your business is Inevitable and the largest value detractor is often what the owner IS or IS NOT doing. </li></ul><ul><li>80% of business owners exit their business to retire, they are not serial entrepreneurs </li></ul><ul><ul><li>Their principal fear is “will I have enough money so that I can fund my retirement lifestyle without running out of money” </li></ul></ul><ul><ul><li>Other considerations may include wealth transfer to the next generation, charitable giving, and minimizing taxes </li></ul></ul>
  7. 7. The Reality For Small Business Owners (2) <ul><li>Typically 50-75% of a business owner’s net worth is in their business assets. The balance is in their personal real estate & financial investments </li></ul><ul><li>Business owners typically only have ONE chance to monetize their largest asset </li></ul>Equities Real Estate Business
  8. 8. The Reality For Business Owners (3) <ul><li>Most business owners have only an anecdotal perception of the value of their business “My brother in law knew a guy who had a business like mine that sold for…” </li></ul><ul><li>Relying on this type of perception can lead to large gaps in future wealth and quality of life </li></ul>&quot;Paper or Plastic&quot;
  9. 9. The Reality For Business Owners (4) <ul><li>85% of all small business owners do not have an exit plan, a wealth management plan, and/or an advisory team to assist them </li></ul><ul><li>Very few start the process early enough to achieve the maximum benefit of valuation and exit planning </li></ul>
  10. 10. Typical Business Owner Concerns <ul><li>Who should I transfer my business to? </li></ul><ul><ul><li>Family, Employees, Partners, a 3 rd Party </li></ul></ul><ul><li>When is the right time to leave my business? </li></ul><ul><li>What is my business really worth? </li></ul><ul><li>What is the right deal structure? </li></ul><ul><ul><li>Tax avoidance vs. future risk </li></ul></ul><ul><li>How do I ensure that I meet all of my future goals and expectations? </li></ul>
  11. 11. There Are Only 4 Places Your Money Can Go <ul><li>An Exit Plan will let YOU decide where your hard earned assets end up! </li></ul>
  12. 12. The Exit Planning Process
  13. 13. Why Value Your Business? <ul><li>Business & Financial Planning </li></ul><ul><li>Estate & Trust Planning </li></ul><ul><li>Employee Stock Ownership Plans (ESOP) </li></ul><ul><li>Partnership Agreements </li></ul><ul><li>Litigation & Disputes </li></ul><ul><li>Creating an Exit Strategy </li></ul>
  14. 14. Value is in the Eye of the Beholder <ul><li>Individual/Lifestyle </li></ul><ul><li>Financial </li></ul><ul><li>Industry </li></ul><ul><li>Strategic </li></ul><ul><li>Related Parties (KEG or Family) </li></ul>
  15. 15. Business Value Components
  16. 16. Value Drivers & Detractors
  17. 17. Value Drivers & Detractors
  18. 18. Value = CF * M <ul><li>Simple Right? </li></ul><ul><li>The Complexity is in the Subscripts </li></ul><ul><li>Value = CF (s), (t) * M </li></ul><ul><li>Sustainable </li></ul><ul><li>Transferable </li></ul>
  19. 19. What Is A Business Valuation? <ul><li>Both a Product and a Process </li></ul><ul><ul><li>Business valuation vs. a real estate appraisal </li></ul></ul><ul><li>Significant value is in the Process </li></ul>
  20. 20. What Is A Business Valuation? (2) <ul><li>Process is a multi dimensional analysis of your business from the Buyer’s Perspective </li></ul><ul><ul><li>Financial, lifestyle, asset, risk & growth attributes </li></ul></ul><ul><ul><li>Identifies what adds to and what detracts from value </li></ul></ul><ul><ul><li>Usually this leads to a handful of items that could greatly improve value </li></ul></ul><ul><li>Form of limited scope appraisal that determines a “Most Probable Selling Price” at a point in time (vs. “Fair Market Value” standard) </li></ul>
  21. 21. What Is A Business Valuation? (3) <ul><li>Determines economic benefit of ownership and not tax value </li></ul><ul><ul><li>Goals are to minimize taxes and maximize economic benefit </li></ul></ul><ul><li>Measures your business against the industry </li></ul><ul><li>Tool for improving the business and maximizing value </li></ul>
  22. 22. What Is Valued? <ul><li>Tangible Assets </li></ul><ul><ul><li>Leasehold Improvements </li></ul></ul><ul><ul><li>Equipment, Furniture & Vehicles </li></ul></ul><ul><ul><li>Inventory, Accounts Receivable </li></ul></ul><ul><li>Intangibles </li></ul><ul><ul><li>Goodwill (vs. “Blue Sky”) </li></ul></ul><ul><ul><li>Patents & Copyrights </li></ul></ul><ul><ul><li>Controlled Territories, Product/Service Niche </li></ul></ul><ul><ul><li>Customer & Supplier Contracts </li></ul></ul>
  23. 23. What Are The Benefits of A Valuation? <ul><li>Demystifies the value of your business </li></ul><ul><li>Establishes a baseline for comparison in the future </li></ul><ul><li>Measures returns on equity, assets, & time </li></ul><ul><li>Provides valuable data for an Exit Planning Process </li></ul><ul><li>Provides tools to control where your investment is going </li></ul>
  24. 24. What Kind of Valuation is Appropriate? <ul><li>Price Opinion </li></ul><ul><ul><li>Based upon broad “rules of thumb” </li></ul></ul><ul><ul><li>For the “curiosity seeker” </li></ul></ul><ul><li>Business Valuation </li></ul><ul><ul><li>“ Most Probable Selling Price” </li></ul></ul><ul><ul><li>Multi dimensional analysis </li></ul></ul><ul><ul><li>Information for planning and control & decision making </li></ul></ul><ul><li>Fair Market Value Appraisal </li></ul><ul><ul><li>Tax, litigation, refinance </li></ul></ul>
  25. 25. Who to Select for the Business Valuation Process? <ul><li>Accountant/CPA </li></ul><ul><li>Certified Business Broker/Valuation Professional </li></ul><ul><li>Licensed Commercial Appraiser </li></ul>With the proper training all can do the work. Select a professional who can best understand the industry and find the value builders and detractors
  26. 26. Business Valuation
  27. 27. Exit Planning: Key to Value Realization <ul><li>Demographics are changing </li></ul><ul><li>Aging population of baby boomer business owners </li></ul><ul><li>More than 8.4 Million Business owners will seek to exit their business in the next 10-12 years. (70%) </li></ul><ul><li>Many businesses are still based in an “old economy model” </li></ul><ul><li>Next generation of buyers want “new economy models’ </li></ul><ul><li>Supply of Businesses for sale will outstrip Demand </li></ul><ul><li>Only those business owners that Plan will be successful </li></ul>
  28. 28. The Exit Planning Process
  29. 29. From The Endless Focused Work in Building Your Business…
  30. 30. ...To Achieving Your Life’s Next Goals
  31. 31. Takes A Cohesive Team Approach <ul><li>Your Legal & Tax Team </li></ul><ul><li>Your Wealth Planning Team </li></ul><ul><li>Your Business Advisory Team </li></ul><ul><li>Your Business Intermediary Team </li></ul><ul><li>You! </li></ul>
  32. 32. The Exit Planning Process
  33. 33. Step One: Identify Exit Objectives <ul><li>“ When a man does not know which harbor he is heading for, no wind is the right wind .” - Seneca </li></ul>
  34. 34. Step One: Identify Exit Objectives <ul><li>Universal Objectives </li></ul><ul><li>How much longer does the owner want to work in the business before retiring or moving on? _________ years </li></ul><ul><li>What annual after-tax income does the owner want during retirement (in today’s dollars)? $_________ </li></ul><ul><li>To whom does the owner want to transfer the business? </li></ul><ul><ul><li>Family? </li></ul></ul><ul><ul><li>Co-Owner? </li></ul></ul><ul><ul><li>Key Employee(s)? </li></ul></ul><ul><ul><li>Outside party? </li></ul></ul><ul><ul><li>ESOP? </li></ul></ul>
  35. 35. Step One: Identify Exit Objectives <ul><li>Working with a Team of Advisors </li></ul><ul><li>No one professional has all the answers. </li></ul><ul><li>Diverse skills and talents are necessary. </li></ul><ul><li>Team approach minimizes time and cost. </li></ul><ul><ul><li>If properly facilitated and led. </li></ul></ul>
  36. 36. Step One: Identify Exit Objectives <ul><li>Who is on the Advisor Team? </li></ul><ul><li>Valuation Specialist </li></ul><ul><li>Business Intermediary </li></ul><ul><li>Investment Banker </li></ul><ul><li>Business or Management Consultant </li></ul><ul><li>Banker </li></ul><ul><li>Exit Planning Advisor </li></ul><ul><li>Financial Planner </li></ul><ul><li>Insurance Advisor </li></ul><ul><li>Investment Advisor </li></ul><ul><li>Business Attorney </li></ul><ul><li>Estate Planning Attorney </li></ul><ul><li>CPA/Accountant </li></ul>
  37. 37. Step Two: Quantify Business and Personal Financial Resources <ul><li>“ Beauty is in the eye of the buyer.” </li></ul>
  38. 38. Personal Wealth Plan <ul><li>Having a Post Retirement Plan on How to Support Your Lifestyle Delivers “Peace Of Mind” </li></ul><ul><li>Personal Wealth Plan + Business Value = Retirement Income Plan </li></ul>
  39. 39. Business Valuation <ul><li>Benefits to the Owner </li></ul><ul><li>Provides a baseline business value by projecting cash flow. </li></ul><ul><li>Measures business and personal resources both today and as a basis for future projections. </li></ul><ul><li>Allows you to monitor progress toward your stated objectives. </li></ul>
  40. 40. Business Valuation (2) <ul><li>Identifies what is being sold </li></ul><ul><ul><li>Inventory, Equipment, Real Estate, Stock </li></ul></ul><ul><li>Establishes profitability </li></ul><ul><li>Assesses risk </li></ul><ul><li>Identifies value drivers </li></ul><ul><li>Scans marketplace </li></ul><ul><li>Considers financing strategies </li></ul><ul><li>Establishes relationship between earnings and value </li></ul><ul><li>Should be done Cyclically with business planning </li></ul>
  41. 41. Step Three: Maximize and Protect Business Value <ul><li>“ Making a silk purse from a sow’s ear.” </li></ul>
  42. 42. Step Three: Maximize and Protect Business Value <ul><li>Benefits to the Owner </li></ul><ul><li>Grow business value and intangible value of the business. </li></ul><ul><li>Reduce income taxes upon sale of business. </li></ul><ul><li>Protect assets from potential business and personal creditors. </li></ul><ul><li>Create ability to sell the business. </li></ul><ul><li>Motivate and keep key employees. </li></ul>
  43. 43. Step Three: Maximize and Protect Business Value <ul><li>Promote Value Through Value Drivers </li></ul><ul><li>Focus on increasing cash flow. </li></ul><ul><li>Develop operating systems that improve sustainability of cash flows. </li></ul><ul><li>Solidify and diversify customer base. </li></ul><ul><li>Implement strategies to grow the company. </li></ul><ul><li>Improve company performance as measured by industry metrics. </li></ul><ul><li>Build a solid management team and groom a successor. </li></ul>
  44. 44. Business Valuation <ul><li>Financial statements are key! </li></ul><ul><ul><li>EBITDA multiples </li></ul></ul><ul><ul><li>Discretionary income multiples </li></ul></ul><ul><ul><li>Cash and non-cash add backs </li></ul></ul><ul><ul><li>Value derived from market data </li></ul></ul>
  45. 45. Strategies for Maximizing Value <ul><li>Value your business early… and often </li></ul><ul><li>Focus on implementing business improvements </li></ul><ul><li>Create and participate in your own Exit Planning Process </li></ul><ul><ul><li>Wealth Management Team </li></ul></ul><ul><ul><li>Legal & Tax Team </li></ul></ul><ul><ul><li>Business Advisory & Intermediary Team </li></ul></ul>
  46. 46. Step Four: Ownership Transfer to Third Parties <ul><li>“ Making a mountain out of a molehill.” </li></ul>
  47. 47. Step Four: Ownership Transfer to Third Parties <ul><li>Benefits to the Owner </li></ul><ul><li>Cash at closing. </li></ul><ul><li>Eliminate financial risk. </li></ul><ul><li>No family succession issues. </li></ul><ul><li>Speed of exit. </li></ul>
  48. 48. Step Four: Ownership Transfer to Third Parties <ul><li>Third Party Sales – Not Just About the Business </li></ul><ul><li>Ability to sell and business value are determined by: </li></ul><ul><ul><li>Intrinsic Value: the value drivers. </li></ul></ul><ul><ul><li>Extrinsic Value: the value the market places on the business. </li></ul></ul><ul><ul><li>Effectiveness of the sale process. </li></ul></ul>
  49. 49. Step Four: Ownership Transfer to Third Parties <ul><li>Current M & A Marketplace </li></ul><ul><li>Of businesses with sales of less than $10 million per year, 20 percent are for sale, but only one out of four actually sells. </li></ul><ul><li>Businesses with sales of $10 million per year aren’t much better – only one-third sell. </li></ul><ul><li>Above $10 million per year, the odds improve to 50-50. </li></ul>
  50. 50. Step Five: Ownership Transfer to Insiders <ul><li>“ Making a molehill out of a mountain.” </li></ul>
  51. 51. Step Five: Ownership Transfer to Insiders <ul><li>Benefits to the Owner </li></ul><ul><li>Achieves Exit Objective of: </li></ul><ul><ul><li>Selling to Key Employee Group (KEG). </li></ul></ul><ul><ul><li>Transferring to a Family Member. </li></ul></ul><ul><li>Motivates and retains key employees. </li></ul><ul><li>Planning reduces risk and increases amount of money received. </li></ul>
  52. 52. Family Owned Businesses <ul><li>Keeping the Family Peace while Growing Business Value </li></ul><ul><li>“ Many Hats” Problem </li></ul><ul><li>Fewer than 50% transfer to 2 nd Gen and less than 20% to 3 rd Gen </li></ul><ul><li>Special Considerations </li></ul><ul><ul><li>Estate Planning </li></ul></ul><ul><ul><li>Leadership Development </li></ul></ul><ul><ul><li>Choosing Advisors </li></ul></ul><ul><ul><li>Compensation & Performance </li></ul></ul><ul><ul><li>Strategic Planning </li></ul></ul>
  53. 53. Step Six: Business Continuity Planning <ul><li>“ Making sure the business continues when the owner doesn’t.” </li></ul>
  54. 54. Step Six: Business Continuity Planning <ul><li>Benefits to the Owner </li></ul><ul><li>Objectives can still be achieved if you don’t survive your exit. </li></ul><ul><li>Retains ownership and control of company if co-owner departs. </li></ul><ul><li>Can force non-contributing owners to leave the business. </li></ul><ul><li>Provides consistency between lifetime and death objectives. </li></ul><ul><li>Ensures survival of the business for the benefit of others. </li></ul><ul><li>Results in family receiving value of owner’s interest, in cash. </li></ul>
  55. 55. Step Seven: Personal Wealth and Estate Planning <ul><li>“ When the ‘slings and arrows’ of outrageous fortune befall you, fight back.” - William Shakespeare (Hamlet) </li></ul>
  56. 56. Step Seven: Personal Wealth and Estate Planning <ul><li>Benefits to the Owner </li></ul><ul><li>Preserve wealth, minimize taxes using both lifetime and death planning tools. </li></ul><ul><li>Coordinates and integrates lifetime exit objectives wishes with estate plan. </li></ul><ul><li>In effect, estate planning becomes part of business and exit planning. </li></ul>
  57. 57. Key Strategies Improving Business Value <ul><li>Manage Value as Seen By The Market </li></ul><ul><li>Positioning in the market place </li></ul><ul><ul><li>Strategic buyers </li></ul></ul><ul><ul><li>Industry buyers </li></ul></ul><ul><ul><li>Financial buyers </li></ul></ul><ul><li>Business continuity </li></ul><ul><ul><li>Balance short term and long term business needs </li></ul></ul><ul><ul><li>Employee development and mentoring </li></ul></ul>
  58. 58. Key Strategies Improving Business Value <ul><li>Good Planning Eases Adversity </li></ul><ul><li>Owner illness </li></ul><ul><li>Divorce </li></ul><ul><li>Death </li></ul><ul><li>Disability </li></ul><ul><li>Litigation </li></ul>
  59. 59. Key Strategies Improving Business Value <ul><li>Reduce Business Viability Concerns </li></ul><ul><li>Performance relative to benchmarks </li></ul><ul><ul><li>Revenues and revenue trends </li></ul></ul><ul><ul><li>Income and cash flow trends </li></ul></ul><ul><li>Expansion potential </li></ul><ul><li>Competitive advantages </li></ul><ul><ul><li>Core competencies </li></ul></ul><ul><ul><li>Company Culture </li></ul></ul><ul><li>Owner dependence </li></ul><ul><ul><li>Is the owner the business? </li></ul></ul>
  60. 60. Key Strategies Improving Business Value (2) <ul><li>Financial Concerns </li></ul><ul><ul><li>Need for good & accurate record keeping </li></ul></ul><ul><ul><li>Positive cash flow and focus on value not tax minimization </li></ul></ul><ul><ul><li>Realistic growth strategies </li></ul></ul><ul><li>Valuation and Price justification </li></ul><ul><ul><li>3 rd party valuation </li></ul></ul><ul><ul><li>Return on Investment to buyer </li></ul></ul><ul><ul><li>Payback periods in years </li></ul></ul>
  61. 61. Key Strategies Improving Business Value (3) <ul><li>Owner’s Role </li></ul><ul><li>Delegate more effectively </li></ul><ul><ul><li>Reduce reliance on business owner </li></ul></ul><ul><ul><li>Formal employee training </li></ul></ul><ul><li>Succession/Exit Plan </li></ul><ul><ul><li>Identify and groom a successor </li></ul></ul><ul><ul><li>Developing & Mentoring key personnel </li></ul></ul><ul><li>Succession takes time and effort </li></ul><ul><ul><li>Complex mix of potentially conflicting issues </li></ul></ul>
  62. 62. Key Strategies Improving Business Value (4) <ul><li>Partners and Employees </li></ul><ul><li>Execute agreements with partners </li></ul><ul><ul><li>Buy/sell and buyout agreements </li></ul></ul><ul><li>Employee dependency </li></ul><ul><ul><li>Employee tenure/turnover </li></ul></ul><ul><ul><li>Employee contracts </li></ul></ul><ul><ul><li>401(k) plans to keep employees </li></ul></ul><ul><li>Human resource documentation </li></ul><ul><ul><li>Employee handbooks </li></ul></ul><ul><ul><li>Job descriptions </li></ul></ul><ul><ul><li>Personnel files </li></ul></ul>
  63. 63. Key Strategies Improving Business Value (5) <ul><li>Operational Process </li></ul><ul><li>Policies and procedures </li></ul><ul><ul><li>Processes </li></ul></ul><ul><ul><li>Core activities </li></ul></ul><ul><ul><li>Systems (consistency of quality, customer service) </li></ul></ul><ul><ul><li>Equipment Maintenance </li></ul></ul><ul><li>Technology and Web Presence </li></ul><ul><ul><li>IT current </li></ul></ul><ul><ul><li>Web links to the world </li></ul></ul>
  64. 64. Key Strategies Improving Business Value (6) <ul><li>Operational Process (2) </li></ul><ul><li>Streamline processes </li></ul><ul><ul><li>Evaluate each product or service to verify contribution to bottom line </li></ul></ul><ul><ul><li>Outsource non-core activities </li></ul></ul><ul><ul><li>Analyze and outsource activities that can be obtained cheaper on the outside </li></ul></ul><ul><li>Inventory Control </li></ul><ul><ul><li>Inventory turnover relative to industry standards </li></ul></ul><ul><ul><li>Review methods (FIFO, LIFO, etc.) </li></ul></ul>
  65. 65. Key Strategies Improving Business Value (7) <ul><li>Suppliers </li></ul><ul><li>Supplier relations </li></ul><ul><ul><li>Supplier/approval selection process </li></ul></ul><ul><ul><li>Long-term contract benefits </li></ul></ul><ul><ul><li>Owner dependent relationships </li></ul></ul><ul><li>Cost of input materials </li></ul><ul><ul><li>Review frequently </li></ul></ul><ul><ul><li>Renegotiate if necessary </li></ul></ul>
  66. 66. Key Strategies Improving Business Value (8) <ul><li>Customers </li></ul><ul><li>Retention </li></ul><ul><ul><li>Friends or relatives of owner </li></ul></ul><ul><ul><li>Customer service and support </li></ul></ul><ul><ul><li>Customer loyalty </li></ul></ul><ul><li>Limit Customer Concentration </li></ul><ul><ul><li>80% of revenue concentrated around a small group of customers </li></ul></ul><ul><ul><li>20% of business concentrated with one customer </li></ul></ul><ul><li>Reevaluate Marketing/Sales </li></ul><ul><ul><li>Direct </li></ul></ul><ul><ul><li>Reps & Agents </li></ul></ul><ul><ul><li>Internet – new channels </li></ul></ul>
  67. 67. Key Strategies Improving Business Value (9) <ul><li>Marketing and Advertising </li></ul><ul><li>Enhance marketing strategy/plans </li></ul><ul><ul><li>Advertising </li></ul></ul><ul><ul><li>Trade Shows </li></ul></ul><ul><ul><li>Internet </li></ul></ul><ul><ul><li>Brand Awareness and P.R. </li></ul></ul><ul><ul><li>Clear and consistent message/value proposition </li></ul></ul><ul><ul><li>Differentiation </li></ul></ul>
  68. 68. Key Strategies Improving Business Value (10) <ul><li>Competition </li></ul><ul><li>Know your competition </li></ul><ul><ul><li>Use industry groups </li></ul></ul><ul><ul><li>Ask your customers </li></ul></ul><ul><li>Know what they do differently </li></ul><ul><ul><li>Articulate your advantages and disadvantages </li></ul></ul><ul><ul><li>Pricing strategies </li></ul></ul><ul><li>Learn from competitors </li></ul><ul><ul><li>Benchmark </li></ul></ul><ul><ul><li>Borrow good ideas </li></ul></ul>
  69. 69. Key Strategies Improving Business Value (11) <ul><li>Legal Issues </li></ul><ul><li>Intellectual property…is it secure? </li></ul><ul><ul><li>Patent, copyright and trademark applications </li></ul></ul><ul><li>Litigation issues </li></ul><ul><ul><li>Settle all litigation </li></ul></ul><ul><ul><li>Resolve all product liability cases </li></ul></ul><ul><ul><li>Resolve all insurance claims </li></ul></ul><ul><li>Form of incorporation pros & cons </li></ul><ul><ul><li>C-Corp, S-Corp </li></ul></ul><ul><ul><li>LLC, Partnership </li></ul></ul><ul><ul><li>Proprietorship </li></ul></ul>
  70. 70. Key Strategies Improving Business Value (12) <ul><li>Regulatory Issues </li></ul><ul><ul><li>Clear environmental compliance </li></ul></ul><ul><ul><li>Have environmental review by reputable firm </li></ul></ul><ul><ul><li>Review all permits and licenses </li></ul></ul><ul><ul><li>OSHA issues </li></ul></ul><ul><ul><li>Pending zoning issues </li></ul></ul>
  71. 71. The vast majority of owners are unaware there is a specific planning and implementation process that can help ensure they achieve their objectives. Most business owners spend more time planning a family vacation than how to build value and exit from their business. This is not due to a lack of desire or intelligence. It is simply because they don’t know how or where to begin.
  72. 72. Get Started with Maximizing & Realizing the Full Value of Your Business <ul><li>Read my Newsletter, Exit Planning Review on Value Building, Bi-monthly advertising-free subscription </li></ul><ul><li>Explore the handout materials and try out the questions in the Business Owner Exit Planning Checklist </li></ul><ul><li>Contact me for a FREE copy of How to Run Your Business So you Can Leave It In Style by John Brown </li></ul><ul><li>Read White Paper “Inevitabilities” and contact me for copies of other topics or FREE assessment. </li></ul>