Exit Planning: Where's the exit?

Where’s the Exit?

Copyright 2012 Angel
Advisors, LLC

Once upon a time…
• Something bad happened
– …there was an entrepreneur who owned/ran a
business…then something really BAD happened and
they lost everything

• Something good happened
business…then something truly amazing happened
and now they have no more worries

• Something Intentional Happened
business, and in the end it all worked out just
as he/she PLANNED

Copyright 2012 Angel Advisors, LLC

Many Chapters in the Life of a Business
•
•
•
•
•
•
•
•

Birth/Creation
Infancy
High Growth
Hit the wall
Maturity
The Crisis
Decline
The End…

• How do you want your last chapter to read?

Q1: Why did you start your business?
a. Needed a job
b. Wanted to be a CEO, Founder,
Entrepreneur, King of the World, etc.
c. Wanted to make a bazzillion dollars
d. Wanted to revolutionize an industry,
create something previously
uncreated…etc…
e. Wanted to give away a bazzillion dollars
to…
f. All of the above
g. None of the above

Q2: How many years did you think it would
take to accomplish goal?
a. <3 years
b. Between 3 and 5 years
c. Between 5 and 10 years
d. Between 10 and 20 years
e. None of the above - Never thought about
it
f. None of the above – different answer…?


Q3: Looking at your Total Net Worth, what percentage of your
Assets does your ownership in the business(s) represent?
a. Less than 10%
b. Less than 25%
c. Less than 50%
d. More than 50%
e. Don’t really know?
f. What’s an Asset?


Q4:Which of these best describes your
business or the business you run?
a. We are the low cost leader in our
industry
b. We have a unique product/service that
either no one else in the industry
provides or a very small number of
providers exist for.
c. We provide a unique product/service in a
segment of an industry that others cannot
provide.
d. None of the above


Q5: Which of the Following Best Describe
Your Business
a. Our business can be/provide/deliver the best
______________ in the world
b. Due to our financial strength our business is
economically sustainable in all economic
conditions.
c. Both myself and our senior management team are
deeply passionate about the products and/or
services our company provides. We really need no
incentive to wake up every morning thinking ‘I
cant wait to get to work…’.
d. Some combination of A, B, and C
e. All of the above
f. None of the above


Q6: My spouse/family/significant other..
a. Appreciate my passion and can’t imagine
me ever leaving the business
b. Appreciate my passion and apply no
pressure to my ‘exit’ time frame
c. Appreciate my passion, but believe I
spend too much time in the business and
therefore want me out of the business
tomorrow
d. I don’t know I’ve never asked them
e. There is no one else on this planet that
cares about my ‘exit’.

Always be prepared as timing is everything…

Value

5

10

15

Time

20

25

Defining your personal objectives





What is your Purpose
What is your Number
What is your Time Frame
Who else does this need to be communicated
with (spouse, family, key employees…)


Team
• The team you need to get it done








Lawyers
Investment Bankers
Traditional Bankers
Personal Financial Planner
Current Executive Team
Additional Executive Management
etc

• How would you assess the team you have
today? (assuming you have one)


What have you heard...
• Purpose
– Faith without Works / Works without Faith

• Team
– Make up
– Experience they bring
– Level at which they play

• Regardless of timing you should always be
prepared
– Informs other decisions


The Angel Advisors
jim@theangeladvisors.com


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