There are many headwinds for privately held business owners exiting their businesses in the next ten to fifteen years. This presentation provides an overview of what business owners can do to "Finish Big."
Expanding Horizons: Hiring Remote Employees across State Lines
Finish Big- How To Successfully Exit Your Business
1. Westlake Sunrise Rotary Club
Sept. 22, 2017
Jim Wisdom, CFP
Finish Big
How To Successfully
Exit Your Business
2. “I don’t predict the future.
I look at what has
happened already and
point out the inevitable
result.”
- Peter Drucker
“The Father of Modern Management”
3. Overview
• What is Exit Planning?
• Why is it important?
• Headwinds Facing the Business Owner
• Characteristics: Successful / Unsuccessful
Exit
• Case Studies - Finish Big
• Key Conclusions to “Finish Big”
• Q&A
4. Research
• My experience with Business Owners (2003-2017)
• “Finish Big”- by Bo Burlingham
• “Exit Planning: The Definitive Guide”- by John Brown
• “Your Exit Map - Navigating the Boomer Bust”
– By John F. Dini
7. Types of Business Exits
• Voluntary
• Sale To Family
Member
• Sale To Key
Employee(s)
• Sale to third party
• Sale to competitor
• Liquidate the business
• ESOP
• Involuntary
• Death
• Disability
• Incapacity
8. Headwinds For The Business Owner
Headwind No. 1
The Baby Boomer Tsunami
10. Baby Boomer Tsunami ( cont’d.)
• “…The Baby Boomer BO’s face a challenge like
none other. Just as they have done everything
else together, the Baby Boomers are all going to
sell their companies at the same time.” - John F.
Dini
• “This kind of movement could result in a glut of
companies on the market, driving down
valuations and giving new leverage to buyers.” -
John Brown
11. Headwind No. 2
Boomer Sellers and Gen X Buyers
• Boomers
• Born 1945-1964
• 78 Million Boomers
• “Live to work”
• Work long hours
• Work regular business
hours
• Work at the office
• Accept risk/reward of
business ownership
• Gen X
• Born 1965-1980
• 69 Million Gen X’ers (-
11%)
• “Work to live”
• Work normal hours
• Work flex hours
• Telecommute
• Many reject the burden of
business ownership
24. Preparing For A Successful Exit
8 Common Characteristics
• BO’s knew who they were, what they wanted out
of business, and why
• BO’s learned to look at their businesses through the
eyes of the buyer
• They built in plenty of time ( years) and options so
they (or heirs) could avoid a forced sale situation
25. 8 Common Characteristics, cont’d.
• A well thought out succession plan ( where
applicable)
• They had the right kind of help ( Advisors, and input
from BO’s who had exited before )
• BO’s had come to terms with responsibilities to
employees and investors
26. • BO’s understood who they were selling to and what
motivated the buyers
• BO’s had a clear vision of what they would do after
the sale
8 Common Characteristics, cont’d.
27. Key Conclusions
Finish Big
• Not the $- although that’s part of it
• It has to do with service
• Each successful exit included BO’s helping
other BO’s to succeed in business
28. • Service may have been a key factor in starting
one’s business
• BO’s serve customers, employees and
communities
– This is often what’s missing during the
transition phase for BO’s
Key Conclusions, cont’d.
29. • “Of all the lessons that can be drawn from…this
book, I believe this (service) is the most important
one.
• “…The stories remind us that a business is not only
an economic organization, but also a social one,
giving purpose and meaning to our lives and
providing the camaraderie, direction and fulfillment
most of us feel a compelling need for.”
Key Conclusions, cont’d.
30. “…The bigger challenge ( other than the $) is to figure
out, in advance if possible, what will take the place of
those other important needs that your company has
filled…”
“ If you can manage, as they have, to use your new
wealth as a stepping stone to an even higher calling,
you can truly be said to have finished big.”
Key Conclusions, cont’d.
