Our mission is to develop a plan to achieve your long term goal to obtain a reasonable value for your business and to ensure the long-term survival of the enterprise.
Our strategy will provide much greater control over who ultimately buys your business, will generate a greater return for you over the long term, and can be successful even in a difficult economic times and with a business that would ordinarily be difficult to sell.
There are six steps to our Focused Exit Strategy:
Step one is to prepare the business for sale.
During this step we will look at your personal objectives and your business objectives including your retirement plan.
We will look at ways to improve the business so that it is therefore more valuable to a buyer.
We will go back and "normalize" the books which means your account will go back and do the last two or three years as if this were a public corporation rather than a private business.
We will look to see how much cash flow there is available to operate the business as well is to support a buyout plan.
Based, primarily on cash flow, we can then determine a preliminary evaluation for the business.
Step two is to locate a "young" person to buy the business.
This step is what makes our approach for much different from the typical business broker. Together, we will locate a young person, probably in their 30's, to buy this business.
This might be a relative or one of your existing employees or perhaps someone who was currently working for a competitor.
Maybe it is just a bright young person who was decided that they want to be in business for themselves.
The secret to our success is that we are going to evaluate this young person by utilizing a complete assessment battery. This assessment requires almost 8 hours of testing and will give us a measure of the individual's capabilities, suitabilities, and insights into leadership.
You are betting a lot on the new owner of the business and therefore we are going to ensure that this individual has the intelligence, the personality, and the leadership abilities to be successful at leading and managing a business. The assessment firm that we use has over 50 years of experience at predicting successful leaders, managers, and business owners.
Step three is to increase the future owner's knowledge of leadership and business management.
Once we are sure the candidate has the innate abilities to be successful as a business owner then we can start building up their knowledge and skills to ensure their success.
We will take them through more than 20 hours of leadership and management training so they understand what motivates people, how to set goals and objectives, and in general how to successfully lead and manage an organization.
We want them to have the leadership and management skills to not only run the business as it is now but to also grow the business into a larger organization.
This training will be completed before you negotiate the final price and complete the deal to sell the business.
The individual will be given an opportunity to become involved in the day-to-day operations of your business so as to build their leadership and management skills.
It is important that they gain confidence that they can do this and that you have the confidence that they will be successful in the future.
Step four is to assist you in determining a fair value for the business.
We will assist you and the potential new owner to determine a fair value for the business.
There is no set formula for evaluating a business, however there are some general guidelines which we can apply. Basically gets down to how much "free" cash flow was available to be divided between the new and old owner over a period of time.
We will work with your current accountant and lawyer or we will recommend competent accountants and lawyers who have experience in business transitions.
Step five, we will design a plan to transfer knowledge from present to future owner.
We will ensure that the knowledge that you have in your head is transferred into the head of the new owner.
Basically you are going to teach them your business and we are going to continue to coach the new owner in basic business practices.
As we go through this process we will be examining each system of the business and may choose to make improvements to the effectiveness and efficiency of the system.
Step six is to assist the new owner to increase business sales volume and margins.
Once the new owner is managing the business on a day-to-day basis than the next objective becomes expanding the business. This usually involves sales and marketing and perhaps examination of new goods and services to be offered.
It is in the interests of the new owner as well is the old owner that the business continues to grow and prospers.
As the business grows larger the burden of paying the former owner becomes smaller and therefore the payments become more secure.
The Focused Exit Strategy can be successful where the business broker approach has failed.
What makes us different?
We can succeed because we have the ability to accurately determine whether the individual who will buy your business has the capabilities, suitabilities, and leadership abilities to be successful as a business owner. We can improve the internal operations of your business which will make it more valuable. We can teach the new owner leadership and management skills that will ensure their business success and provide you a much more secure retirement.
If the traditional approach to selling a business is not working for you do not give up hope.
Contact us for a business consultation and let us show you there is a way to successfully develop a Focused Exit Strategy