PREPARING YOURSELF AND YOUR BUSINESS FOR TRANSITION Kimberly Deas Business Transfer Specialist Murphy Business and Financial Services www.SellYourBusinessFlorida.com 1
Aug 11, 2014
PREPARING YOURSELF AND YOUR BUSINESS
FOR TRANSITION
Kimberly DeasBusiness Transfer Specialist
Murphy Business and Financial Services
www.SellYourBusinessFlorida.com 1
My Story• Ran $16M Marketing Business• Burned Out• Equity was Negative• Walked away from Multi-Million Dollar
Business• Decided business owners deserved to know• GOAL: Educate you on business value and
transfer processwww.SellYourBusinessFlorida.com
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Everyone EXITS their Business
VS.
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Business Transfer Cycle
From Rob Slee, author Private Capital Markets
U.S. Ten Year Transfer Cycle
Deal Recession Prime Selling Time Uncertainty
1980199020002010 BUYBUY
1983199320032013 SELLSELL
1988199820082018
1990200020102020
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Baby Boomer Bulge is Coming
Creating a Plan
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• What do you want to achieve with your exit?– Continuation of business– Financial Security– Asset Diversification– Reward Key Employees– Orderly Transition to Family – Fast sale (forced out)
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To Prepare:•Are you addicted to your business?•Is your business a job or an investment?•How involved are you with the day-to-day running of the business?•Do you know what you would do if you weren’t in business?•Are you ready to let go and let someone guide you through the transition?
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• What % of your total net worth is tied up in your business?
• What is your “Value Gap?”– The difference between what you need to fund your
post exit/transition lifestyle and your current savings.
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To Prepare: Meet with your financial planner NOW
Sell ZoneSell ZoneUnsellable ZONEUnsellable ZONE
To Prepare: - Review Checklist to Add Value-Get Valuation (ASAP)-Clean Up Books and Records
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• How are you going to Exit?– Gift the business to family member– PEG Recapitalization– Sell the business
• Outside buyer / • Management / Employees (ESOP)
– Liquidate the assets – Take it with you to the grave– Win the lottery and just walk away from it all
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Creating a Plan
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It’s never too early to begin this type of
planning, but it could be too late.
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Next Steps
Online Sellability Test (message me)and
Download our free report on “7 Critical Points Every Business Owner Must Know Before
Selling Their Business”
http://bit.ly/LxKnN8
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