Are You Maximizing the Value of Your Business?
The goal is to maximize the business’s value, increase your income now, provide a better work-life balance, reduce stress, and create a transition plan that is always there if you should need to exit at a moment’s notice or whenever it suits you.
Therefore, I have compiled nine simple steps to help you determine what you need to accomplish to maximize the value of your business and always be “ready” to transition. Use this as a simple checklist and note which ones you have yet to accomplish.
You are “Maximizing the Value of your Business” if…
1. Your personal, financial, and business goals are aligned. This means they are defined, co-dependent, and linked.
2. You have spent time getting educated on exit options and the process to transition your business. You have discussed transitioning with your loved ones.
3. You have created an advisory team to assist and mentor you. This team may include a CPA, wealth or financial advisor, exit advisor, spouse or significant other, banker, M&A specialist, estate planning attorney, real estate attorney, business attorney, key employees, investment banker or business broker, board members and family or personal counselor.
4. You have created a contingency plan that includes buy-sell instructions and appropriate insurance, and specifies what should happen if, before you transition, something happened outside of your control that would prevent you from operating your business or unwillingly force you to transition. You have reviewed this plan with your trusted advisors including family members and/or partners, if applicable.
5. You have a completed a strategic analysis, business valuation, and personal, financial, and business assessment(s) within the last year.
6. Your transition plan is written and includes goals and objectives, clearly defined tasks and accountabilities, the definition of your transition team, the definition of your transition process, a plan leader or project manager, timelines, a budget, and your role before and after transition. Ideally, this plan has a multi-year implementation timeline.
7. You have considered and designed a life-after business plan. This plan is linked to or part of your wealth management plan which has been prepared by a professional financial advisor and if applicable, estate planning attorney, insurance specialist, tax specialist, and charitable foundation specialist.
8. You have a pre-transition value enhancement/preliminary due-diligence project underway to de-risk the business, maximize its value, minimize taxes upon transition, and improve the probability of a smooth transition to the next owner, including family, partners, or employees if applicable. Family transitions should be treated no differently than other transition options. Ideally, this plan has a multi-year implementation timeline.
9. You have a management program underway to ensure the post-transition leadership is prepared to operate the company after you exit and secured the appropriate specialists to handle your desired transition option.
If any of these steps are incomplete, the Weiss Advisors Value Acceleration Plan will walk you through the process in stages – the Discovery Stage, the Enhancement Stage, and the Decision Stage, so that before you enter Decision Stage, you will be able to answer YES to all nine of these statements.
Please do not wait until you’re ready to retire or one of the five D’s occur – now is the time to implement a value acceleration plan. If you are ready to take charge of your future, contact Weiss Advisors today for a no-obligation discovery consultation.
