The document provides advice for planning small and middle market business exits by focusing on operations, organization, and financial areas to maximize business value. It recommends investing in technology, skilled employees, and capital equipment to stay competitive. Owners should ensure the business is not too dependent on them and there are clear lines of accountability. Financial planning advice includes paying taxes accurately, having budgets and financial goals, and managing by the numbers to improve the balance sheet over three years. Implementing these changes can increase business value and profitability for a potential sale or transition to new management.

1. Planning for Small & Middle Market Exits

2. Maximizing Value Look at your Business with an Unbiased EYE! Operations Organization Financial

3. Operations If you were 35 and starting again in your business, where would your focus be for the next five years? Have you invested in technology, or has technology passed you by because “you are thinking about selling”? Are there growth areas in your industry?

4. Operational Con’t Have I invested in capital equipment to stay up with my competitors? Depreciation is a “Real” number!

5. Organization Do you have skilled people in key positions? Does your staff have the skill sets to be competitive in the future? Are you able to rely on others or is your business too dependent on the owner? If you were not present, what would be the worth of your operation?

6. Organization Con’t Are lines of communication formal or informal? Are employees held accountable for performance? If you are not there, who makes the critical decisions?

7. Financial Pay taxes!! Balance sheet needs to be correct. Understating Inventory to avoid taxes has a adverse effect on valuation. Depreciation is a REAL number!! Build your balance sheet in advance of selling (3 years)

8. Financial Con’t Are there clear budgets and financial goals in place? Do managers manage by the numbers?

9. Why Bother? Each improvement in these areas can mean as much as 3-4 times the cost of implementing theses procedures to your value. (Not to mention increased immediate profitability) Selling your business is as much an emotional decision as it is a financial decision.

10. Why Bother? Con’t Look at each future expenditure with an eye to “adding value to my balance sheet” rather than as an expense. Even if you don’t sell, your business will improve and you may decide to hire or promote a General Manger who is schooled in running your business…your way!

11. IMPLEMENT!! PLAN!!! ANALYSIS!