The benefit of creating your business succession plan in advance of a sale

1. CBACAN Inc.
Creative Business Advisors
Exit Readiness Strategies
Executive Business Coaching
Enhancing the Value of Your Business

2. Exit Planning - NOT
Planning your exit from the parking lot of
Scotiabank Place after a Sens hockey game.

3. Rental Property

4. If you didn’t wake up tomorrow
What would happen to your
business?

5. Begin With the End in Mind
Start Exit

6. Every Business Owner’s Goal
To Sell the Company
Exit Ready = Maximum Value

7. Don’t Sell a Fixer Upper!!

8. 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

9. Law of Supply & Demand
• There will be a crowded marketplace
• Your business must stand out

10. Selling Your Business is
All 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

11. How Do You Get More Money
For Your Business??

12. 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.

13. 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

14. CBACAN
• Prepare an Exit Readiness Report
• Pinpoint Areas Requiring Improvement
• Establish Timelines For Improvements
• Define Monthly Deliverables
• Implement a Weekly Scorecard

15. Exit Readiness Index
Valuation Expectations
100%
Compliance Issues Personal Expectations
90%
Systems Processes and 80%
Shareholder Goals
Databases 70%
60%
50%
Personal Knowledge Payment Considerations
40%
30%
20%
Contracts 10%
Immediate Value Readiness
0%
Intellectual Property Credibility and Justification
Company Documentation Brand Issues
Management Systems and Marketing Documentation and
Forecasts Systems
Financials Employee and Management Issues

16. Valuation Indicator

17. 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

18. 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

19. Maximum Value
Profitability
+
Sustainability
+
Transferability

21. Ensure Your Business is
• Built to Last For Decades
• Ready to Sell Tomorrow

22. Remember The Fixer Upper?

23. Sell For Maximum Value

24. A Successful Exit
• Maximizes net sales proceeds
• Provides desired retirement income
• Implements estate planning strategies
• Assets are protected
• Ability to enjoy life after sale

25. This is Exit Readiness

26. Don’t Delay

27. CBACAN Inc.
Creative Business Advisors
Free
Exit Readiness Report
dsaxe@cbacan.com
613-563-1085
Enhancing the Value of Your Business