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Rich Gunn, CEPA, CPA
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Overview

Value Acceleration and Exit Planning Strategy

As a business owner, you have learned to expect the unexpected and plan for it. However, many business owners are caught off guard when it comes to exiting or selling their business.

  • Over 55% of business owners exit their business when they least expect to and are unprepared for an exit when it occurs. Business owners are forced to sell because of the unexpected, including the death of a business partner, disability, health issues of the owner or a loved one, divorce, downturns in the economy, other issues that put stress on a business. Or they may be approached with a surprise offer from a buyer. Avoiding the Fatal 55 - BPM (bpmcpa.com)
  • The resulting exit process is often a frantic, chaotic, and panic-driven experience. This type of experience typically leads to a lower sales price or value of the business.
  • As a result, 75% of business owners experience post-sale regret.

Why do businesses not sell, or sell for far less than the desired value?

It’s primarily because their business was not exit-ready. It had undeveloped value, and therefore, it did not sell for the highest potential price.

Furthermore, the business owners had few exit options due to their lack of planning. The business owner was not in control of the exit process.

In addition, the sale price was insufficient to accomplish their post-exit goals, or the sale proceeds will fail to last the duration of their lifetime.

Being forced to sell your business without achieving the desired value does not have to happen to you.

Our exit planning process is called Value Acceleration and provides strategy and practical steps for meeting the business owner’s goals.

  • Do I need an exit plan? The short answer is “yes”. Developing an effective exit planning strategy is essential. It will result in action steps that will maximize business value and put you in control of the exit process whenever you are ready. Does Every Business Need an Exit Plan? - BPM (bpmcpa.com)
  • What is an exit planning strategy? Exit strategy is making certain that you have a written plan, including actions steps, which you, the owner, focus on for building enterprise value at all times. It aligns your personal goals with your exit strategy. It also makes certain that your business is always exit ready, even if the unexpected occurs.  When Should I Begin an Exit Plan for My Business? - BPM (bpmcpa.com)
  • What is Value Acceleration? Value acceleration is our five-stage exit planning process which includes:
    1. Identifying current value and range of potential values
    2. Identifying and eliminate risks
    3. Identifying value enhancement opportunities
    4. Maximizing and monetize business exit value
    5. Aligning your business exit strategy with your personal goals for a successful post-exit life.
    We incorporate this into an action plan that drives the process to reaching your exit planning goals and aspirations. How Do You Prepare an Exit Plan? The Ultimate Guide for Business Owners - BPM (bpmcpa.com)
  • How do I accelerate the value of my business? Accelerating the value of your business involves being able to see your business through the eyes of a buyer. Seek and eliminate risks that a buyer will seek and find. Identify what will make your business more attractive to a buyer. Identify weakness that buyers will find and remove the weakness or reverse the process and develop it into value enhancements. How to Avoid 7 Mistakes That Sabotage Business Value - BPM (bpmcpa.com)
  • What is my business worth? Effective exit planning will result in a higher price for your business than today’s value. The process will identify the range of potential values and it will move the needle from current value toward highest end of the range. In fact, business owners who take the time to develop an exit strategy often accelerate or increase the value of their business.
  • How do I get the greatest value when I sell my business? It all starts by knowing your post-exit goals, plans, and lifestyle. Then, develop a strategy and action plan to achieve a business value that allows you to achieve those goals. This strategy will increase business value, eliminate business risk, explore all exit options, and put you in control of the exit process. What a Business Valuation Will Never Tell You and Why You Should Still Get One - BPM (bpmcpa.com)
  • How do I sell my business? The first step to selling your business is articulating your exit goals and having a strategy for getting there. One step in that strategy is identifying the right type of buyer, but it is only one step and should be in sync with your exit strategy and post-exit goals. Who Is the ‘Right Buyer’ for Your Business? - BPM (bpmcpa.com)
  • How do I transition my business to my children? Less than 15% of family businesses survive into the third generation. Effective exit planning will improve the chances of success for the next generation because they will have a plan supported by solid processes and structure. It will also create a contingency plan in case the family transition plan goes awry. Do I Need an Exit Plan, if My Children Will Take Over My Business? - BPM (bpmcpa.com)
  • Do I need an exit plan if I transition my business to my employees? In this case, an exit plan will give you options by identifying several methods for transitioning your business to your employees. And it will always include contingency plans because astute business owners will plan for the unexpected and be exit ready with alternative plans to sustain business value. Do I Need an Exit Plan if My Employees Will Buy My Business? - BPM (bpmcpa.com)

Value Acceleration Services Create Effective Exit Plans

We take your aspirations as a business owner and turn them into actionable plans, regardless of how or when you exit your business. Demystifying Exit Planning - BPM (bpmcpa.com)

Because It Really is All About You, the Business Owner: Do I Need a Plan for Life, After I Exit My Business? - BPM (bpmcpa.com) Find out how we can help you create more value. Click here to schedule an introductory, no obligation call.

Our process also focuses on your post-exit plans, because your life does not end when you exit your business:

  • BPM’s process aligns your business strategy with your personal plans, and it takes the fear out of letting go of your business.
  • You will be financially and emotionally prepared to exit your business because you will have a post-exit plan in place.

The Exit Planning & Value Acceleration Process

Replace your fear and anxiety about exiting your business with a sound exit strategy. A strategy that gives you control over the situation, enabling you to decide when and how to exit your business.

Learn more about our Exit Planning & Value Acceleration process: 

Download our free e-book on Exit Planning & Value Acceleration:  Value Acceleration and Exit Planning | BPM Business Advisory Services - BPM (bpmcpa.com)

Access our library of B.O.S.S. articles, the Business Owners Special SeriesThe Business Owners’ Special Series - BPM (bpmcpa.com)

Contact our Exit Planning & Value Acceleration practice leader, Rich Gunn, Partner, CEPA, CPA

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Rich Gunn, CEPA, CPA
Partner, Advisory

Contact

Rich Gunn, CEPA, CPA
Partner, Advisory