Exit Readiness Presentation For Accountants
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Next Level Business Planning Succession Planning Exit Readiness Planning Business Sustainability Business Coaching
description
How accountants can provide a value added service to clients
Transcript of Exit Readiness Presentation For Accountants
Next Level Business Planning
Succession PlanningExit Readiness Planning
Business Sustainability
Business Coaching
About Our Principal• Graduate – Eastern Michigan University
• David Saxe is a Chartered Accountant
• Interned with Deloitte Touche
• Has been self employed since 1971
• Cable Television Industry for 28 years
• As a regulatory & financial consultant
• Helped clients buy & sell cable systems
What We Do
• Business Sustainability• Value Enhancement• Exit Planning
MAUS AccreditedWe work with you and Partneryour clients
Exit Planning - NOTPlanning your exit from the parking lot
after a Heat basketball game.
Rental Property
Exit Planning – Basic PrinciplePrice & Desirability of a Business are a
function of:
• Profitability
• Trend of those profits
• Certainty of the profits being achieved
• Longevity of those profits
• Transferability of the business
The Exit Plan• Only two ways to dispose of a business
• Voluntarily – With Control– Sale– Management buyout– Family transfer– IPO
• Involunarily – No Control– Bankruptcy– No buyers– Creditors take over– Close the doors
Unpredictable Events That CouldLead to Involuntary Loss of Business
• Compounded by the 4 “D’s”– Death– Disability– Divorce– Distress
• These Contingencies CAN be planned for!!
What is the Opportunity• Baby Boomers are reaching retirement• Successful Entrepreneurs ready to sell
• 40% of Business Owners plan to sell their business within the next 5 years
Law of Supply & Demand
• There will be a crowded marketplace
• Your client’s business must stand out
Don’t Let Your Client Sell
A Fixer Upper
The Case FOR Exit Planning• 75% of Business Owners DO NOT have
an Exit Plan
• Many Senior Family Shareholders have NOT done any Estate Planning
• It’s never too early to create the Exit Plan
• Lack of an Exit Plan is the main ingredient for disaster
• Businesses just aren’t prepared to Exit
What is Exit Planning?
• Exit Planning is an Integrated Approach
• Designed to Help address all of the…– Business - Personal– Legal - Financial– Tax - Insurance
Issues involving YOUR client’s business
Why Don’t Business Owners Have an Exit Plan?
• Confidentiality• Who can I trust
• Disclosure• Don’t want others to know I’m considering an exit
• Timing• I’m not looking to exit anytime soon
• Too Busy• I don’t have time to plan my future right now
– The relative attractiveness of your business to an end user.
– The readiness level of your systems and documentation to be open to scrutiny by a potential buyer.
Why is there no Urgency
• Lack of Awareness
• Need for Education
• They are Intangible Benefits
• Confidential/Private Subject
How Do We Inspire Clients to Change?
• Educational Seminars
• Breakfast Series
• Team up With an Exit Planning Firm
• Direct Communication with Client
• Offer an Exit Readiness Assessment
How Ready Is Your Client?The First Step
Business Health Check
Exit Readiness Assessment
Exit Readiness IndexPinpoints the Weak Areas
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Valuation Expectations
Personal Expectations
Shareholder Goals
Payment Considerations
Immediate Value Readiness
Credibility and Justification
Brand Issues
Marketing Documentation andSystems
Employee and Management IssuesFinancials
Management Systems andForecasts
Company Documentation
Intellectual Property
Contracts
Personal Knowledge
Systems Processes andDatabases
Compliance Issues
Questions That Need to be Answered
Questions That Need to be Answered
Building The Team
The Importance of the Accounting Firm
• The Accountant is the most trusted advisor
• You know your clients best
• Your objective is to best serve your client
Benefits of the Exit Plan
• Profits Will be Improved
• Business Value Is Maximized
• More Leisure time for the owner
• Business Is Ready To Sell at any time
• Confident Target Sales Price Can Be Achieved
Maximum Value
Profitability
+
Sustainability
+
Transferability
The Objective
A business that is READY for sale is
A business that the SELLER WOULD BUY
Ensure Your Client’s Business is:
• Built to Last For Decades
• Ready to Sell Tomorrow
Remember The Fixer Upper?
Sell For Maximum Value
A Successful Exit
• Maximizes net sales proceeds
• Provides desired retirement income
• Implements estate planning strategies
• Assets and family are protected
• Ability to enjoy life after sale
This man has an Exit Plan
Don’t Delay
Next Level Business Planning
Your Exit Planning Specialist
www.nextlevelbusinessplanning.com
