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Good Exit Planning Reduces Stressors

Preparing a company for exit requires more than company readiness

In kicking off a new year, most owners are rightfully giving thought to their business and what they want to achieve to build company worth. Too often forgotten is the readiness of the owner(s).

Here are great questions to ask yourself now, using time as a friend to ensure that you (co-owners) are  ready for a potential exit one day:

  • Am I truly going to want to disconnect from my company one day? Often times, owners talk a good game about selling one day, but because they are so connected to their baby and they don’t envision doing anything else, they actually don’t prepare well for an exit because deep down they fear it versus embrace it.
  • When company sale time comes, do I know what I want to do next with my life – my calendar today is full with events and meetings related to my business. Am I thinking clearly about what I want my calendar to look like the minute these meetings and events disappear?
  • Am I aligned with my spouse/partner/family in terms of what post company ownership life looks like? Too often an owner sells, starts changing their routine and assumes their family is ready to change their routines as well…most often this is a bad assumption. Talk now with family members around what a company sale might mean to them given how it’s going to change your life/routine.
  • Is your family clear as to your wishes for the company should you become incapacitated and not able to lead your team prior to an organized exit event? We all want to assume that exiting from our company one day means going out via a euphoric sale to a third party. But have you documented your wishes and plans for the business should something occur prior to selling that forces your family to step in and figure out what to do with your company? An owners sudden and unexpected inability to continue leading their business is not only stressful to a spouse/partner/family on one level but it then becomes enormously stressful for them to determine what to do with the business because you didn’t leave any plans for how to handle such an unexpected, but potential, event. In these situations, the stressor also then translates to your employees because they learn of the sudden uncertainty with the company and their employment.
  • Is your financial plan being put in place to help you ensure that you will make enough net proceeds from selling your company one day to pay off any business debts (acquirer’s won’t assume them) and have you built your plan for what cash flows you’ll need and want once the company is no longer paying you or distributing funds to you? Owners can get comfortable over the years paying themselves a good salary and taking distributions as they need to cover life expenses. Once that pipeline is gone, is your plan set as to where those funds will come from?
  • Have you thought through the gross amount you will want to receive one day from a third party for your business and what net amount that will actually deliver to you? Conducting a Gross to Net Proceeds Payout Analysis should be done well in advance of attempting to sell. Many owners are often unpleasantly surprised when they see what the Net payout is from a Gross amount that sounded attractive to them.

Start this new year by stepping back and asking key questions like these. The longer you wait, kicking the can down the road on these questions, the more stressful your life and the life of those around you will become when you’re actually faced with having to address them.

Use Greenpoint Testing to Achieve Your Desired Exit Valuation

It only takes 106 questions, scanning 10 essential business functions, to stress test your readiness for a successful exit.

However, these questions require thoughtful commitment to achieve your desired exit valuation.

During this up to hour-long online testing, you'll see questions such as the following.

Sample Question 02

After internalizing each question, select among three answer options – Agree, Unsure and Don’t Agree – choosing the answer which best describes you and your business.

Then, complete the Greenpoint questionnaire to unlock your personalized report, which will reveal any gaps in your planning, pointing to the action steps needed to maximize your desired exit valuation.

Format: Digital

Delivery method: Email

Report included: Your Greenpoint results

Stethoscope Frees You to Work On Your Business, Beyond In It

120 questions, scanning 10 essential business functions, free you to work ON your business, rather than solely IN your business.

With each question requiring thoughtful commitment to identify opportunities to further your success.

During this up to hour-long digital Q&A, you'll see questions such as the following:

Sample Question 02

After internalizing each question, select among three answer options – Agree, Unsure and Don’t Agree – choosing the answer which best describes you and your business.

Complete the Stethoscope questionnaire to unlock your personalized report, which will expose gaps [if any] in your planning, and tips for future growth, resulting in action steps needed to maximize your thinking as a business leader.

Format: Digital

Delivery method: Email

Report included: Your Stethoscope results

Be Ready for The Probe of Due Diligence

109 questions, scanning 10 essential due diligence disciplines, to prepare for a roadblock free Probe of your business in anticipation of sale.

And to potentially increase the value of your business by your professional transparency.

With each question requiring thoughtful commitment to identify opportunities to further your success.

During this up to hour-long digital Q&A, you'll see questions such as the following:

Sample Question 02

After internalizing each question, select among three answer options – Agree, Unsure and Don’t Agree – choosing the answer which best describes you and your business.

Complete the Probe Diagnostic Tool questionnaire to unlock your personalized report, which will expose gaps [if any] in your planning for a due diligence Probe, resulting in action steps needed to maximize your readiness when diligence is due.

Format: Digital

Delivery method: Email

Report included: Your Probe results