Exit Planning for your Business
Even if the day you want to retire is still 10 years out, you want to start planning for that transition today. Many businesses never plan for the day the owner decides to retire until that year is upon them. Even more have no contingency plan in the event of an unexpected transition, due to life changes, health, or death.
What is a CEPA?
A Certified Exit Planning Advisor (CEPA) is part of an elite group of business advisors that specialize in value acceleration methodology that positions your company in a place that it is ready for sale, if and when that time comes. Much like the staging of a home for sale, your Certified Exit Planning Advisor will strengthen the business, personal, and financial aspects of your company, improving its stand-alone value and creating a true asset for sale when the time arises.
Why Exit Planning?
What if you listed your home for sale tomorrow? Would it be ready? Most likely it would need a list of things from paint touchups to major work. Could you move out and everything run smoothly in your house without you, would the groceries be stocked and the trash taken out?
While this may seem a little far fetched, apply it to your business. If you never stepped foot in your office again, would it continue to run smoothly? Would it run at all?
Exit Planning is all about planning for the future. If you are building your company from the ground up, you are usually an integral part of that company. When you retire, who will take your place? Will your company continue to run and pay you dividends over your retirement? Do you aspire to sell it or pass it down to family? All of these scenarios need planning to come to fruition. As a perk, the better you position your business for sale, the better return you get both now in current operations and then, when it is time to move on. This is what is called Value Acceleration.
The Value Acceleration Process is a business process improvement to help raise the value of your business. In this case, for sale. But the intended consequence of value acceleration methodology is to take your good product (your company) and improve it to make it more appealing, or valuable, to a potential buyer. The result of this improvement is that the business runs better and has more current cash flow as well. So not only will your business be worth more in the future, it is also generating more income now. Win-Win.
Is your Company Accruing Value?
Take this short questionnaire to see where your company is on the road to business value.