Is Your Client\'s Business Exit Readiness Presentation 2011

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Details the benefits of running and exit ready business

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Is Your Client\'s Business Exit Readiness Presentation 2011

  1. 1. <ul><li>Next Level Business Planning </li></ul><ul><li>Succession Planning </li></ul><ul><li>Exit Planning </li></ul><ul><li>Exit Readiness </li></ul><ul><li>Business Coaching </li></ul>
  2. 2. About Our Principal <ul><li>Graduate – Eastern Michigan University </li></ul><ul><li>David Saxe is a Chartered Accountant </li></ul><ul><li>Interned with Deloitte Touche </li></ul><ul><li>Has been self employed since 1971 </li></ul><ul><li>Cable Television Industry for 28 years </li></ul><ul><li>As a regulatory & financial consultant </li></ul><ul><li>Helped clients buy & sell cable systems </li></ul>
  3. 3. What We Do <ul><li>Exit Planning </li></ul><ul><li>Value Enhancement </li></ul><ul><li>Business Coaching </li></ul><ul><li>MAUS Accredited </li></ul><ul><li>We work with you and Partner </li></ul><ul><li>your clients </li></ul>
  4. 4. Exit Planning - NOT Planning your exit from the parking lot after a Heat basketball game.
  5. 5. Rental Property
  6. 6. Exit Planning – Basic Principle <ul><li>Price & Desirability of a Business are a function of: </li></ul><ul><li>Profitability </li></ul><ul><li>Trend of those profits </li></ul><ul><li>Certainty of the profits being achieved </li></ul><ul><li>Longevity of those profits </li></ul><ul><li>Transferability of the business </li></ul>
  7. 7. The Exit Plan <ul><li>Only two ways to dispose of a business </li></ul><ul><ul><ul><li>Voluntarily – With Control </li></ul></ul></ul><ul><ul><ul><ul><li>Sale </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Management buyout </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Family transfer </li></ul></ul></ul></ul><ul><ul><ul><ul><li>IPO </li></ul></ul></ul></ul><ul><ul><ul><li>Involunarily – No Control </li></ul></ul></ul><ul><ul><ul><ul><li>Bankruptcy </li></ul></ul></ul></ul><ul><ul><ul><ul><li>No buyers </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Creditors take over </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Close the doors </li></ul></ul></ul></ul>
  8. 8. Unpredictable Events That Could Lead to Involuntary Loss of Business <ul><li>Compounded by the 4 “ D’s ” </li></ul><ul><ul><li>D eath </li></ul></ul><ul><ul><li>D isability </li></ul></ul><ul><ul><li>D ivorce </li></ul></ul><ul><ul><li>D istress </li></ul></ul><ul><li>These Contingencies CAN be planned for!! </li></ul>
  9. 9. What is the Opportunity <ul><li>Baby Boomers are reaching retirement </li></ul><ul><li>Successful Entrepreneurs ready to sell </li></ul><ul><li>40% of Business Owners plan to sell their business within the next 5 years </li></ul>
  10. 10. Law of Supply & Demand <ul><li>There will be a crowded marketplace </li></ul><ul><li>Your client’s business must stand out </li></ul>
  11. 11. Don’t Let Your Client Sell A Fixer Upper
  12. 12. The Case FOR Exit Planning <ul><li>75% of Business Owners DO NOT have an Exit Plan </li></ul><ul><li>Many Senior Family Shareholders have NOT done any Estate Planning </li></ul><ul><li>It’s never too early to create the Exit Plan </li></ul><ul><li>Lack of an Exit Plan is the main ingredient for disaster </li></ul><ul><li>Businesses just aren’t prepared to Exit </li></ul>
  13. 13. What is Exit Planning? <ul><li>Exit Planning is an Integrated Approach </li></ul><ul><li>Designed to Help address all of the… </li></ul><ul><ul><li>Business - Personal </li></ul></ul><ul><ul><li>Legal - Financial </li></ul></ul><ul><ul><li>Tax - Insurance </li></ul></ul><ul><li>Issues involving YOUR client’s business </li></ul>
  14. 14. Why Don’t Business Owners Have an Exit Plan? <ul><li>Confidentiality </li></ul><ul><ul><ul><li>Who can I trust </li></ul></ul></ul><ul><li>Disclosure </li></ul><ul><ul><ul><li>Don’t want others to know I’m considering an exit </li></ul></ul></ul><ul><li>Timing </li></ul><ul><ul><ul><li>I’m not looking to exit anytime soon </li></ul></ul></ul><ul><li>Too Busy </li></ul><ul><ul><ul><li>I don’t have time to plan my future right now </li></ul></ul></ul><ul><ul><li>The relative attractiveness of your business to an end user. </li></ul></ul><ul><ul><li>The readiness level of your systems and documentation to be open to scrutiny by a potential buyer. </li></ul></ul>
  15. 15. Why is there no Urgency <ul><li>Lack of Awareness </li></ul><ul><li>Need for Education </li></ul><ul><li>They are Intangible Benefits </li></ul><ul><li>Confidential/Private Subject </li></ul>
  16. 16. How Do We Inspire Clients to Change? <ul><li>Educational Seminars </li></ul><ul><li>Breakfast Series </li></ul><ul><li>Team up With an Exit Planning Firm </li></ul><ul><li>Direct Communication with Client </li></ul><ul><li>Offer an Exit Readiness Assessment </li></ul>
  17. 17. How Ready Is Your Client? The First Step <ul><li>Business Health Check </li></ul><ul><li>Exit Readiness Assessment </li></ul>
  18. 18. Exit Readiness Index Pinpoints the Weak Areas
  19. 19. Questions That Need to be Answered
  20. 20. Questions That Need to be Answered
  21. 21. Building The Team
  22. 22. The Importance of the CPA Firm <ul><li>CPA’s are the most trusted advisors </li></ul><ul><li>You know your clients best </li></ul><ul><li>Your objective is to best serve your client </li></ul>
  23. 23. Benefits of the Exit Plan <ul><li>Profits Will be Improved </li></ul><ul><li>Business Value Is Maximized </li></ul><ul><li>More Leisure time for the owner </li></ul><ul><li>Business Is Ready To Sell at any time </li></ul><ul><li>Confident Target Sales Price Can Be Achieved </li></ul>
  24. 24. Maximum Value <ul><li>Profitability </li></ul><ul><li>+ </li></ul><ul><li>Sustainability </li></ul><ul><li>+ </li></ul><ul><li>Transferability </li></ul>
  25. 25. The Objective A business that is READY for sale is A business that the SELLER WOULD BUY
  26. 26. Ensure Your Client’s Business is: <ul><li>Built to Last For Decades </li></ul><ul><li>Ready to Sell Tomorrow </li></ul>
  27. 27. Remember The Fixer Upper?
  28. 28. Sell For Maximum Value
  29. 29. A Successful Exit <ul><li>Maximizes net sales proceeds </li></ul><ul><li>Provides desired retirement i ncome </li></ul><ul><li>Implements estate planning strategies </li></ul><ul><li>Assets and family are protected </li></ul><ul><li>Ability to enjoy life after sale </li></ul>
  30. 30. This man has an Exit Plan
  31. 31. Don’t Delay
  32. 32. Next Level Business Planning <ul><li>Your Exit Planning Specialist </li></ul><ul><li>[email_address] </li></ul><ul><li>561-997-1229 </li></ul><ul><li>www.nextlevelbusinessplanning.com </li></ul>

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