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
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.
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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Watch John Brown on MSNBC
|What Business owners typically say…
"I need to strengthen my company to better withstand competitive pressure."
"I don't have a systematic way to motivate my best employees."
"I need something different so that I can attract the best employees possible."
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