As the flood of “Baby Boomers” begin to contemplate retirement, almost 7,200,000 businesses will be up for sale between now and 2029. Unfortunately only about 20% will successfully sell their business. Those business owners who are proactive and take steps to improve the market readiness of their business will be the winners in the race to a successful exit. Recently released by B2B CFO, The Exit Strategy Handbook accompanied by the B2B CFO Dashboard software is as the subtitle states “The BEST guide for selling your business”.
This guide provides the business owner with a systematic 10 step approach to begin preparing their business for a successful exit. A brief statement of the steps is a follows:
- Step 1 – Acquire the necessary tools.
- Step 2 – Follow the B2B CFO process of gathering The Success Team™ and identify the various exit options.
- Step 3 – Determine the beginning “realistic” value for the company.
- Step 4 – Begin the process of adding value to the company.
- Step 5 – Begin the B2B CFO The Advanced Due Diligence Process™
- Step 6 – Complete enough of The Advanced Due Diligence Process™ to become attractive to buyers.
- Step 7 – Calculate the projected net cash available and have the Wealth Manager calculate possible future earnings.
- Step 8 – Work with an M&A Firm/Investment Banker to reach out to potential buyers and attract offers.
- Step 9 – Evaluate offers and determine the best after-tax liquidity among the offers.
- Sept 10 – Close the sale and begin the next chapter of your life.
Each of these steps are discussed in detail in B2B CFO’s Exit Strategy Handbook. The book also contains a series of checklists for ensuring that each step of the process is complete and that nothing of importance is overlooked.
The Exit Strategy Handbook and the Dashboard are available for those that wish to go it alone. However, B2B CFO Partners are available in many locations and can assist business owners to facilitate the development of an Exit Strategy to the extent desired.