The Exit Game Plan
You (The Business Owner)
The Cinderella Project
Selling Your Business. Think of this as a game. The BIG GAME.
The Goal - Sell your business for as much as you can. Sell for enough to sustain your lifestyle.
The Rules - Value = (Adjusted) Earnings x Your “Multiple”
The Players - You (Captain) and your team. Maybe your accountant, and a business transaction lawyer? Perhaps a M&A or Business Broker type? Hopefully, someone who is an expert in Value Creation
And, the Buyer (who is he? Which of the 5 kinds of Buyers is he?) and his team - who are there to drive down the price the Buyer may be willing to pay.
Next: You need to develop The Game Plan - What is the strength of your team on the field? (There are 7 pillars of value creation that comprise a Multiple - some areas will be weaker than others). How do you stack up?
Where can (and how can) you improve on your strengths?
The way to win (increasing the Value up on the scoreboard) might seem straight forward. To just double sales and increase revenue, but that’s actually not a likely winning strategy (and easier said than done).
Go back to the Rules. The way to win is about moving the Multiple. The Multiple creates the leverage to increase (or decrease) the valuation of the business, and that is very feasible if you understand what a Multiple is, the 7 key components that comprise the multiple, and how the opposition is going to view your Multiple
Beat the buyer at their own game by increasing the depth and scores of your components before you enter the field.
That’s how you win at this oh so important Exit Game. And this is a game you must win.
Most people never understand the rules, let alone the strategy. They often come out onto the field with the wrong team, fighting the wrong game and using the wrong tools.
The 7 Pillars of Value Creation unlocks all of this, and opens up the playing field, giving you an excellent chance of winning the day. The Cinderella Project does it for you (think of it like this, The 7 Pillars of Value Creation is like having our playbook, The Cinderella Project is having our head Coach, star QB and cheerleaders).
Either way, it all begins with the survey… that gives you the tools, the data, the blueprint for materially increasing the value of your business in the Buyer’s eyes…
1. Operational Irrelevancy
You are the owner. If you walk away, does everything run smoothly?
2. Standard Operating Procedures
Is there a manual that describes how everything gets done? And by whom?
3. Stay Bonuses
Do the key people have an incentive to stick around?
4. Deep Bench
Is there depth in needed staff and employees?
5. Recurring Revenue
How much of your top-line revenue is “automatically renewing” year after year?
6. Automating Sales & Customer Service
Do you use digital marketing and sales support software? How is the customer concentration mix? Do salespeople use tablets tracking inventory, pricing, job orders and RFPs? Is customer service automated?
7. Margin Management
Are you hitting acceptable industry appropriate Gross margins? Net Margins? Are they increasing or decreasing?
Learn how to actually improve on each of these components to drive a higher multiple, while also using Exit Group's proven Financial Engineering process to increase EBITDA, and your business will command a significantly higher valuation than from where you began.
It all begins with the survey below… the Exit Valuation Survey gives you the tools, the data, the blueprint for materially increasing the value of your business in the Buyer’s eyes…
The 7 Pillars of Value Creation™ works alongside our Exit Valuation Survey. From the survey algorithms, we see your business' Multiple, and your score in each of the 7 components. This is what a typically Buyer will look at after performing their own due diligence, and how they will value your business (you still need to have your EBITDA determined, which we can help you with).
How It Works
It's time to face the truth. If you don't plan your exit correctly, you could end up working until you die. Your journey to a successful sale and increasing the value of your business by 30-50% starts with taking our Exit Valuation Survey. This tells us exactly where you are now, the exact performance of your business, and what you need to do to improve. You can access your buyer Risk Report and speak to our analyst team on a complimentary call to discuss your results, increasing value and exit options.
TAKE THE SURVEY
Discover how your business scores in
the 7 key drivers of valuation
ACCESS RESULTS & ANALYST
Understand the risks a buyer sees
when valuing your specific business
INCREASE BUSINESS VALUE
Implement the "7 Pillars Of Value Creation" and increase your business value
Getting out of a Business: Time vs. Value
7 Federal Street
Phone : 978-369-4800
*The Lower Middle Market is comprised of businesses worth $5-$30 million, typically having EBITDA of $1 million - $4 million.
The 7 Pillars of Value Creation is our name for our work as Business brokerage services and related consulting pertaining to business sales, mergers, acquisitions and business valuation. Exit The Family Business the downloadable guide and any accompanying assets or affiliates are provided for informational and educational purposes only. It is not intended to provide tax, accounting or legal advice, nor is it an offer or solicitation to buy or sell, an endorsement or sponsorship of any company, security or fund. Certain owners, officers or affiliates may be associated with investment firms and may make referrals from time to time for such services, but this does not constitute investment advice, nor should it be construed as Exit The Family Business being in that business. We always suggest you seek professional advice. Past results are not a guarantee of future results.