A process. Not an Event.
Want to maximize value at exit?
The Exit Planning Process
Exit Planning is a process, not an event. Entrepreneurs that successfully cash out from their business often have one thing in common: they’ve planned for their exit.
In many cases that process starts with a valuation for your business- it’s one of the top reasons we are engaged. Smart owners seek to understand – and benchmark – present value so that they can plan a course of action forward. Afterall, how can you effectively plan for your exit (a financial event) when you don’t know the starting point (your current financial position)?
While each situation is different, the general exit planning process we follow is:
- What is the present value of the company? Completing a formal, unbiased valuation is the first step in the planning process.
- What’s the magic number? How much do I need to exit on my own terms and enjoy a fully funded retirement? We work hand in hand with financial planners to transition our work (what’s the value?) to their’s (how much do I need?).
- Fix the gap. If the present value is less than the required value, how do I get there? Quantive can point you towards the folks that can help.
- Re-measure. After you’ve spent some time fixing the problems – years in some cases – re-measure to ensure the numbers make sense.
- Exit. The point of execution. Get the M&A team in place to facilitate the exit.
It all starts with a formal, credentialed valuation. Our goal is to provide a thoroughly reasoned, well supported report that shows not only the value calculated, but also the framework and underlying assumptions that go into the development of value.