CBACANInc.

Creative Business Advisors

Exit Planning Strategies

Executive Business Coaching

Enhancing the Value of Your Business

Exit Planning - NOT

Planning your exit from the parking lot of Scotiabank Place after a Sens hockey game.

Rental Property

If you didn’t wake up tomorrow

What would happen to your business?

Begin With the End in Mind

Start Exit

Every Business Owner’s Goal

To Sell the Company

Exit Ready = Maximum Value

Don’t Sell a Fixer Upper!!

Did You Know• Baby Boomers are reaching retirement• Successful Entrepreneurs ready to sell

• 40% of Business Owners plan to sell their business within the next 5 years

Law of Supply & Demand

• There will be a crowded marketplace

• Your business must stand out

Selling Your Business isAll About Risk!

• The higher the risk, the lower the valuation

• The lower the risk, the higher the valuation

• Risk refers to the relative risk a buyer feels if he were to invest in your company

How Do You Get More MoneyFor Your Business??

Lower the Risk Levels!

• Risk is derived from two indexes

– The relative attractiveness of your business to an end user.

– The readiness level of your systems and documentation to be open to scrutiny by a potential buyer.

What is Required?

• Prepare an Exit Plan at least 12 to 24 months prior to selling

• Develop checklist of the things to do to make your business more attractive

• Implement the correct documentation and systems you will need to have in place

• Establish a monitoring system

CBACAN

• Prepare an Exit Readiness Report

• Pinpoint Areas Requiring Improvement

• Establish Timelines For Improvements

• Define Monthly Deliverables

• Implement a Weekly Scorecard

Exit Readiness Index

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Valuation Expectations

Personal Expectations

Shareholder Goals

Payment Considerations

Immediate Value Readiness

Credibility and Justification

Brand Issues

Marketing Documentation andSystems

Employee and Management IssuesFinancials

Management Systems andForecasts

Company Documentation

Intellectual Property

Contracts

Personal Knowledge

Systems Processes andDatabases

Compliance Issues

Valuation Indicator

What Makes a Business Attractive

• Buyer looks for a return on investment

• Based on steady growth of profits

• Steady growth of revenue

• Low risk of continuing this growth

• Business is NOT reliant on the owner

• High industry growth trend

The Benefits of the Plan

• Profits Are Maximized

• Business Value Is Enhanced

• Employees are Happier

• Business Is Ready To Sell

• Target Sales Price Can Be Achieved

Maximum Value

Profitability

+

Sustainability

+

Transferability

Ensure Your Business is

• Built to Last For Decades

• Ready to Sell Tomorrow

Remember The Fixer Upper?

Sell For Maximum Value

A Successful Exit

• Maximizes net sales proceeds

• Provides desired retirement income

• Implements estate planning strategies

• Assets are protected

• Ability to enjoy life after sale

This is Exit Readiness

Don’t Delay

CBACANInc.

Creative Business Advisors

Free

Exit Readiness Reportdsaxe@cbacan.com

613-563-1085Enhancing the Value of Your Business