If you are a business owner, your business is probably the most valuable asset you own. This relates to the years of sweat equity and strategic vision you’ve invested in an endeavor that has enabled you to live a dream. Yet to truly live a dream, you have to sustain it. This portion of the Financial Confidence Continuum Process allows you to remain the main decision maker for your company and conclusively determine where you go from here. In addition, it puts you in a position to make informed and calculated decisions about your future. There will be no rush to judgment on our watch. Our business continuity analysis is critical to the assessment and has four critical components:
*Business valuation services are provided by a 3rd party vendor.
Many business owners are perplexed by the challenge of exiting their company. For most it represents the lion’s share of their wealth, but it is illiquid and the exit process can be intimidating. With the help of WealthPilot Financial, and our experience working with business owners on this challenge, we are confident that we can help assist you with making this process as smooth as possible.
Nick earned the Certified Business Exit Consultant™ designation through Pinnacle Equity Solutions, the premier source for training advisors in this specialty.
Pinnacle Equity Solutions is the market leader in providing education, consulting and support to help middle-market companies design and execute comprehensive exit plans that allow owners to transition their businesses to the next owner, whether they are family, management teams, or outside buyers. Best known for our proven 6-step, exit planning process, Pinnacle focuses on helping owners get a clear picture of their personal goals with a customized solution to address a business’s perpetuation and ongoing success regarding the next level of ownership.
Pinnacle’s vision is that all middle-market business owners have a well-developed exit plan to assist them with the largest financial and emotional transaction of their lives. Our mission is to educate owners and their advisors, empowering this emerging marketplace with the information and support that it needs to handle this massive flow of Baby Boomer wealth that is positioned to change hands in the next few decades. Our values of education, excellence, integrity and helping others is what unites our network of Members and Certified Business Exit Consultants™, making Pinnacle’s experienced team ready to assist you with your unique needs.
Whether you plan to sell your company outright, transfer to management, or pass to children, you need a roadmap to help you get there. While Exit Planning can feel overwhelming, our 6 Step Process is valuable in formulating a game plan and making progress towards your goals.
What would you like to achieve with your exit? When? For many owners, it isn’t simply one thing. Often, it is financial security or diversification. It could be a desire to involve children or to reward key employees. Perhaps it’s to achieve the freedom to enter the next chapter of life. Whatever it is for you, it’s important that you spell out your goals.
Do you know what it would take to be financially independent outside of your company? A thorough analysis will determine the financial resources necessary to sustain your lifestyle after exit. The results define the Value Gap between your projected assets and what’s needed to meet your goals. Additionally, you must assess your mental readiness for exit. What will you do after exit? How do you feel about being identified as someone other than the owner of your firm? The mental game is often more challenging than owners think.
Business owners typically fall into four categories based on their financial/mental readiness. Your exit options become clearer once you recognize your owner type, and the corresponding transfer methods. Who do you resemble?
If you are like most owners, you know very little about ESOPs, Private Equity Recaps, Management Buyouts, Gifting Strategies or the myriad ways to structure a Third Party Sale. An education is helpful, even if to merely discard the options that won’t apply. Given your goals and financial needs, the most likely exit paths begin to take shape in this step.
It’s not what you make, it’s what you keep! You must run the numbers for each of the applicable exit options. You’ll learn about the range of values associated with private companies, the impact of taxes and fees on any transaction, and the cash flow results for both you and the business throughout the exit. You’ll want to know this well before executing the plan.
You’ve chosen your option, made your plan, and now it’s time to execute. Assemble your team, plan for contingencies, and take action. You’ll learn how to help protect your wealth from estate taxes, and provide for plan completion in the event of an untimely death or disability. This final step provides the written action plan for you and your advisory team to use as the roadmap for making your goals a reality.
Many owners do not possess the financial and mental readiness to transfer their business at the present time and are mainly interested in improving the financials of their business. We provide a series of tools that can enhance the performance of their businesses and provide for greater proceeds at the time of eventual sale: