Maximizing and Protecting Business Value

Step 1 - Identify Owner Objectives

Each Component of the Exit Plan relies on the owner’s objectives with respect to that Component and also propels the business owner closer to achieving his or her overall Exit Planning objectives (to the extent that they are known). Owner objectives in this Component may include reaching a target business value, protecting valuable business assets, developing an independent and strong management team and motivating and retaining key employees.

Step 2 - Identify Business and Professional Financial Resources

In addition to identifying what a business owner wants, it is equally important to determine what owners have — the current value of the business and its current and projected cash flow. The owner and his or her advisors use current business value and projected cash flow to choose the planning tools best suited to move the business owner closer to his or her objectives. Without an initial determination of what the owner has, the business owner cannot measure his or her progress toward the stated objectives.

Component

The elements that build the value of a business or preserve the value the owner has worked so hard to create are called Value Drivers. In this Component, owners and their advisors identify which Value Drivers are important to meeting the owners’ objectives and steps to protect the tangible and intangible value of their businesses.

Implementation and Follow Through

The business owner and his or her advisors work together to design and finalize the Recommendations that will drive the owner toward reaching his or her objectives. Once Recommendation details and decisions are complete, an organized and systematic implementation of each Recommendation follows. Finally, attention is directed to the next Component that will fit into the owner’s comprehensive Exit Plan.

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