On average, 350,000 owners sell, transfer or close their businesses each year. Most believe they will follow the “traditional” route to retirement, which means listing their company for sale with a business broker and then waiting for a buyer.
The reality is that brokers in the U.S. list about 50,000 businesses for sale each year, and eventually sell about 20% of those. To assist the majority of business owners seeking transition alternatives, many professionals now offer exit planning advisory services.
The path you choose should consider your time frame, personal goals, financial objectives, legacy intentions and the needs of other stakeholders. Your answer may be selling to a third party, but sales to employees and transfers to family can result in the same proceeds and security, with far less stress. Exit planning is the process of examining your options.
ExitMap® Express™ provides cost effective planning for business owners. It is driven by standardized tools and technology, which specifically focus on the exit options that align with your goals. It does not create personal financial plans, estate plans, enterprise value enhancement strategies, management development, or continuity planning. Those issues will be discussed, but it will be up to you if you want to address them.
The process outlined on this page is designed for business owners working together with a qualified and trusted advisor. As such, only an ExitMap® Affiliate can access the tools and online resources to complete an ExitMap® Express™ plan. The help of an experienced exit planning coach will prove invaluable when considering your choices.
Planning isn’t the same as implementation. Creating a plan doesn’t force you into a specific time frame, but having defined objectives will materially influence your future business decisions. The first step is to understand your options. The implementation schedule is up to you.
Good luck on your journey. We hope it is the most rewarding stage of your business career!
A.) ExitMap® Assessment© Debriefing (full Analysis review)
B.) Business Baseline© Interview
C.) Discuss client’s initial objectives
D.) Review Documentation List
A.) 3 years financial statements (P&L, Balance sheets)
B.) 3 years company tax returns
C.) Personal balance sheet/financial statement
D.) Company structure, ownership and governance documentation
E.) Complete the Owner Centricity Quiz© (15 minutes, online submission)
A.) Complete Cash Flow Calculator©: SDE and EBITDA (online joint exercise)
B.) Complete Cash Flow Illustrator© (prefilled by advisor except for SDE)
C.) Seller’s Sanity Check© (online illustration and discussion)
D.) Distance to Goal Guesstimator and Triangulation© (online illustration and discussion)
A.) Watch “The Five Roads to a Business Exit” video (5 minutes)
B.) Personal Vision Worksheet© (electronic form submit to advisor)
A.) Complete Management Succession Worksheet© (electronic form)
B.) Owner Centricity© and Management Succession© debriefing
C.) Valuation opinion and industry comparative values (prepared by advisor)
D.) Review Personal Vision Worksheet©
E.) Finalize client objectives for timing, method and proceeds.
A.) Overview of Plan elements (submitted by advisor)
A.) Review plan for acceptability
B.) Discuss alternatives and modifications
C.) Discuss management development needs
A.) Complete Plan with Action Items and submit for client review
A.) Review Final Plan for acceptance
B.) Discuss Action Items and Next Steps
Single-owner (or single family) businesses with fewer than 20 employees, where the owner plans to exit the company in 3 to 10 years.
Clients must be committed to engaging in the process, and possess both the technical ability and willingness to complete online or other electronic tools and participate in scheduled video conferences.
The cost of comprehensive transition planning for mid-market enterprises can range from $30,000 to $300,000 or more. Smaller businesses typically don’t have the same options, and can be transferred with far less rigorous preparation.
ExitMap® Express focuses on the three critical factors for business owners. It will help you clarify your objectives, determine what is needed to achieve them, and give you a road map for implementation.
If you submit information promptly and commit to scheduled video coaching calls, ExitMap® Express can be completed in as little as three months. Four to six months is more typical.
The entire process includes nine steps. The client will submit historical financial and company information, complete two short online assessments, and two other electronic fillable forms. All other forms and calculations will be completed by your ExitMap® Affiliate, or jointly during video conference calls.
©Copyright 2022. The ExitMap® logo and the term “Exit Map” are registered trademarks, and the contents of ExitMap® Express™ including all the tools and materials referenced herein, are the property of MPN Incorporated, San Antonio, TX.
If you have questions about the services we offer or would like to request a proposal, please submit the form below. Someone from the Porte Brown team will be in contact with you as soon as possible. You can also call us directly at 847-956-1040.
Get in touch today and find out how we can help you meet your objectives.