Exit and Succession Planning is simply good Business Strategy

The primary purpose of this web site is to empower small business owners by informing them about the Exit and Succession Planning process and the importance of having an Exit or Succession Plan to unlock the wealth trapped in their businesses, harvest those riches, and enter the best phase of their life - retirement.

Are you one of the 33% of Family business owner-managers relying on the sale or succession of your business to fund your retirement and do not have an exit plan so that you risk leaving hard earned value on the table?

Baby Boomer and older Owners represent 50% of all business owners meaning that the supply of businesses for sale is going to outstrip demand leading to lower prices paid or businesses that don't sell. Are you prepared for that?

It is not a matter of IF you exit or transition from your business but a matter of WHEN and HOW. Do you have a plan to control the WHEN and HOW to maximise the value of your business?

Do you know the value of your business? Do you understand the process and all options available when exiting or transitioning out of your business?

Exit planning is simply good business strategy integrated with your personal and financial goals. Do you have an exit plan? If not you need to attend to your exit strategy now not a few months before you exit as that will be too late and you will most likey leave hard earned value on the table.

We have solutions to these questions that can offer:
1) more financial certainty and;
2) more Value from the Exit and Succession process.

Would you like to see what those solutions look like?


With regards to real estate sales the industry often refers to the threee most important factors of Location, Location, Location. When we talk about business sales the three most important factors are Value, Value, Value. The drivers of Value are Profit, Timing and Risk.

Profit is a driver of Value

  1. Profit refers to recast EBITDA not the Net Profit that your accountant calculates for income tax purposes.
  2. EBITDA is Earnings Before Income Tax Depreciation and Amortisation.
  3. Recast is a term used when all expenses incurred by the owners of the business and one off abnormal items are added back to EBITDA.

Timing is a driver of Value

  1. Market Timing refers to factors such as the strength of the economy, availability of finance and capital gains tax.
  2. Business Life Cycle Timing refers to factors such as growth stage, historical trends and future prospects.
  3. Personal Timing refers to factors such as owner's energy level, owner's age, owner's personal involvement, owner's passion about the business and owner's health.

Risk is a driver of Value

  1. Risk refers to the relative risk that a buyer feels if he were to invest in your company.
  2. The higher the risk the lower the valuation.
  3. The lower the risk the higher the valuation.
  4. Risk is derived from three indexes:
    1. Business Attractiveness refers to the relative attractiveness of your business to a buyer.
    2. Business Readiness refers to the readiness level of your systems and documentation to be opened to scrutiny by a potential buyer.
    3. Personal Readiness refers to the readiness level of the owners i.e. planned or forced exit.

Attractiveness + Readiness = Reduced Risk and Higher Value

What Makes A Business More Attractive?

What constitutes Business Readiness?

This 7-minute quiz is designed to provide you a snapshot of your business and highlight the strengths and weaknesses to help you to focus on adding REAL VALUE.

Business Attractiveness quiz banner

Both the score and the report we provide are FREE of charge and completely confidential. The results are based on research across hundreds of businesses from around the world and what adds REAL VALUE to your company.

How Are Businesses Valued?

The common ways a business is valued are as follows:

We focus on CFME as it is the simplest method to understand and is the most common method used for valuing small businesses. The two components are 1) Recast EBITDA and 2) the Multiple. The good news is that you can definitely control and improve EBITDA and to a certain extent you can control the multiple applied. The multiple tends to be a range of say 2-4 so you can work on your business to move it from a multiple of 2 to a 3 or a 4.
So let's have a deeper dive by way of an example.

Company A had no exit plan and decided to sell only 6 months before wanting to retire and had too little time to present the business in it's best light. It had a recast EBITDA of $100k and a multiple of 2 (the industry range was 2-4).
Company B had decided 2 years before retirement to plan for the sale of the business. By working with a Certified Exit Planning Advisor (CEPA) they increased their recast EBITDA from $100k to $120k and worked on their attractiveness so that they had a multiple of 3.
Company C has been running his business for over 5 years with the end in mind and put a comprhensive plan in place with the help of a Certified Exit Planning Advisor (CEPA) so his recast EBITDA is $130k and his multiple is 4.

Company A Value - $100,000 x 2 = $200,000
Company B Value - $120,000 x 3 = $360,000
Company C Value - $130,000 x 4 = $520,000

I am confident that 100% of business owners would choose the Company C result.

The difference between the $200,000 and the $520,000 in the above example is called the VALUE GAP and this is what you could leave on the table if you have no Exit Plan.

The worked example above is the basis of the methodology referred to as Value Acceleration™.

So What Does A Certified Exit Planning Advisor Do?

The Exit Planning Institute (EPI) refer to a Certifed Exit Planning Advisor (CEPA) as the Value Advisor. The Value Advisor takes the business owner through the Value Acceleration Methodology. They oversee the development and implementation of the business owners Master Plan and act as the ‘quarterback’ or project manager of the advisory team, bringing in fellow professional advisors throughout the process as required.
Through this interactive, team-play process the Value Advisor helps the other advisors to become more engaged and resolve issues. The Value Advisor not only becomes a critical advisor for the business owner, but also a major referral source for other various professional advisors as they identify many different service opportunities throughout the process to address the business owner’s needs.
As a Certified Exit Planning Advisor (CEPA) I follow the Exit Planning Institutes' (EPIs') Value Acceleration Methodology™. Quoting directly from the EPIs' website (http://www.exit-planning-institute.org/about/value-acceleration-methodology/):

The Methodology creates a Master Plan for the business owner which integrates business, personal, and financial goals into their exit strategy. This process consists of three major components, referred to as the “three legs of the stool”: 1) Maximizing (sic) Business Value 2) Personal Financial Planning, and 3) Life After Business Planning. The process teaches that exit strategy is business strategy. It is about building, harvesting, and preserving family wealth for generations to come; and integrating best-in-class business practices into daily operations. The Methodology focuses on enterprise value.

CLICK HERE for more information about the Value Acceleration process.

My Offer to You:

Register your details by clicking the button below and you will receive an electronic copy of WALKING TO DESTINY: 11 Actions an Owner MUST Take to Rapidly Grow Value & Unlock Wealth written by Christopher M. Snider the creator of the Value Acceleration Methodology™ and CEO/President of the Exit Planning Institute.
This is a MUST read book For Business Owners by a Business Owner. Walking to Destiny is not only your essential resource to understand what makes your business attractive and ready for transition; it is a business owner’s handbook to know HOW TO rapidly grow value and ultimately unlock the personal wealth trapped in your most significant financial asset: Your Business.

Feel free to call 0419 002 742 today for an obligation free chat with our Senior Adviser Jonathan Lucas.

Nothing to lose ..... everything to gain.

Certified Exit Planning and Business Advisor