30 Sep Why an Exit Strategy is CRUCIAL!
We all remember why we started our own business and, in most cases, we understand “what” our business model is and “how” we were going to run that business. But what we don’t spend enough time doing, is thinking about “when” we are going to get out of business or transition that business to a new buyer and liquidate our efforts into a payday.
It’s a fact that most business owners have 80-90% of their Net Worth tied up in their businesses and that only 75% of owners even remotely know what their business is worth.
Another shocking statistic is 10-20% of businesses placed for sale ever sell at all. Incidentally, of the businesses that do sell, the average sales price is only 75% of the list price and usually includes some form of owner financing and “hold backs” or “earn outs”. Which means the owner did not cash out!
Those are pretty scary statistics considering the time, effort, money and stress your business has put on you and your family to get to where it is now. The reason; It was a question of “risk for the buyer! Risk not mitigated earlier in the process.
Max Business Profits specializes in helping business owners come up with an Exit Plan, implement your options and prepare your business for sale at a premium price. Typically, a business requires 2-5 years of planning, collaboration with your employee team and financial professions such as your CPA and financial planners. We are routinely referred by these professionals to help their clients achieve maximum profits at the time of sale and more importantly during the “preparation” period prior to a sale. We have helped numerous clients grow or “scale” their businesses by using our proprietary system that addresses not only revenue promotion, processes and several other documented “profit” or value factors that every business needs to implement for success and PROFIT!
Contact us for a Free Discovery Session.