Like many of the sponsors at this year’s Exit Planning Summit, we provide Exit Planning services. There’s nothing unique about that.
What is unique is the model we have created for providing them. Here are the three things that make us different:
Our platform includes two major components:
Exit Plan Development provides what Business Owners and their Advisors need most – a plan that covers the entire process. An action-driven Exit Plan gives Business Owners the flexibility – and the power – to exit in their own time and on their own terms. They’re always prepared to exit, even if they’re not ready to exit.
Plan Development is a three-to four-month process that includes twelve clearly defined steps, beginning with a complete understanding of the owner’s transition objectives and concluding with the creation of a formal, written plan. The plan is a living document, which means it can be modified to accommodate changes in the owner’s objectives. This flexibility ensures that the owner always has what we call owner options.
Exit Plan Implementation covers the complete process of implementing the plan. It focuses on the actions required to increase the value of the business while preparing to eventually sell it. Growing a business is a good thing, but it doesn’t necessarily prepare the business for sale; conversely, preparing a business for sale always includes a growth strategy.
Plan Implementation focuses on increasing the value of the business both on a quarterly basis and at the time of sale. Value is increased through proven processes designed to improve the company’s day-to-day operations, protect the owner’s assets, and prepare both the owner and the business for an eventual sale. But value is increased even more by focusing on the intangible assets that include the intellectual capital that holds as much as two-thirds of the value of the business.
Both components are supported by something we refer to as Activity-Based Awareness. The truth of the matter is that most Business Owners don’t know what a successful exit looks like, and most of their Advisors don’t know how to talk with them about finding out. We address this knowledge gap with a set of tools specifically designed to open meaningful conversations about Exit Planning between owners and Advisors. Included in these tools are:
An Indication of Value, which is not a prediction of sale price, but an estimate of the current value of the business. Most Business Owners have never received an indication of the value of their business.
A Readiness Assessment that captures information about the readiness for sale of both the business and the owner.
A review of the owner’s business, financial, and personal Transition Objectives. Understanding the owner’s personal and financial goals are just as important as his or her goals for preparing the business for sale.
The owner’s Business Continuity Instructions, which document the owner’s wishes for the operation of the business in the event of his or her incapacitation.
How does ExitSmarts deliver value to Business owners and their Advisors? ExitSmarts is committed to delivering value to all stakeholders in its Exit Planning model.
The Business Owner receives value in three very important ways. First, the owner benefits from the planning process, which eliminates the guesswork about what he or she knows or doesn’t know, what variables may be overlooked or omitted, and what obstacles may come into play in the future.
Second, the owner benefits by preparing the business for sale at the price and under the conditions that make sense for either him or her.
Third, the owner realizes the financial and emotional benefits of operating a greatly improved company throughout the process. Many times, owners do an about-face and stay involved in the business long after they thought they were burned out.
The Advisor receives value in multiple ways, as well.
First, and possibly foremost, the Advisor strengthens his or her position as a Most Trusted Advisor by providing a life-altering service to the Business Owner. Someone is going to help the Business Owner exit successfully, and that person should be an already trusted Advisor.
Second, the Advisor builds his or her revenue potential on both a short-term basis, by providing a valuable service, and a long-term basis, by contributing to the Business Owner’s successful exit. A CPA may, for example, add revenue by developing exit plans or doing the tax-related work associated with plan implementation. Or a Financial Advisor may increase Assets Under Management initially, as the owner’s business increases in value through improved operations, and then later, when the business is sold.
Third, the Advisor adds a high-value, high-demand new service to his or her portfolio and does it at the level of involvement with which he or she is the most comfortable.
Please stop by our booth in the sponsor area. We’ll look forward to talking with you. And enjoy your time at this years’ Summit.