The TRUTH behind the most common reactions of business owners who are thinking about exiting…
i can exit just fine without help…I think
This is the opinion of the business owner who is really good at what they do and spent a lifetime building a business from nothing into a strong asset. “I built this business and I can figure out how to exit by myself.” While that is certainly possible, it is likely not in your best interest. The truth is - You can read several books, watch YouTube videos, talk with other business owners who have done it, trust your own gut and make it all happen. But why would you do all of that when you can engage an expert who can do all the heavy lifting for you so you can exit your business successfully with the maximum profit? The old adage, “You don’t know what you don’t know” is never more true than in the exiting journey. A trusted CEPA Advisor is equipped to be your partner and will likely pay for themselves 5x-10x.
I don’t know where to start, So I choose to do nothing
This is often the most common response to the exit planning discussion. Most owners are overwhelmed or intimidated by the perceived exit planning journey, so they take the “bury your head in the sand” approach to exiting, pretending it’s not looming. The truth is - Just because the owner attempts to ignore it does not mean it isn’t coming. By partnering with a trusted Certified Exit Planning Advisor (CEPA) you can be prepared, whenever the exit occurs versus having to scramble in the final months to make it happen, often leaving significant amounts of money on the table.
Planning for my exit will disrupt my business too much
The owner who believes business operations will slow, employees and leadership teams will become distracted and profits will go down at the worst time, embarking on the exiting journey does not feel worth it. From their perspective, the con’s outweigh the pro’s and so they determine to keep their eye on the growth of the business rather than the exit. The truth is - Exit planning is just really good business planning. The business will actually grow and become more profitable DURING the exit journey, if done properly. That is why a trusted CEPA advisor is so important to partner with. They know how to get the business there.
If my employees hear that I’m planning to exit, they will leave
“If my employees or leadership team catch wind that I am starting to talk about exiting, they will leave for greener pastures and my business will be sunk. The risk it too great.” While this fear is understandable, it is unwarranted. The truth is - Every employee and leadership team member knows that the owner will exit someday. That is not a surprise to them. However, when they learn the owner is planning for a smooth handoff to the next owner so they can retain their jobs for many years to come, that will typically energize them to want to be a part of the exit journey. A trusted CEPA advisor will be your best source for understanding how to navigate these waters.
I’ll worry about “exiting” when it gets closer
The owner who believes their exit is still 5, 7, or even 10 years away and therefore sees no need to start planning now, is at the greatest risk for failure. The statistics bear this out. 70% of businesses that are put on the market either NEVER sell or sell for far less than they could have with proper exit planning. The truth is - Exit planning begins the day the owner starts the business. The specific planning for an exit should realistically begin a minimum of 2 years prior to the exit, probably more. A trusted CEPA advisor understands how to guide the owner through this journey and increase the value of the business as the day of exiting arrives, insuring the value is there and the owner achieves their goals.
I’m never going to exit
“I plan to do this business until the day I die. I love it every day and can’t imagine not doing it someday.” While this is commendable, The truth is - EVERY owner WILL exit their business. The key is to exit on your terms, not someone else’s. 50% of business owner exits are involuntary. There are many reasons why an owner must leave their business and if not prepared, this could create a major problem for the owner, their family, and employees. By partnering with an trusted CEPA Advisor the business owner can be prepared, whenever the exit occurs.
I’m passing the business to my family or employee(s), so I don’t need to worry about exit planning
The owner who thinks exit planning has no relevance to him/her because they are “passing it on to their kids (or employee(s)),” misunderstands the importance of the exiting journey. “I have a built-in buyer, so why would I go through all of that distraction only to sell to the person who is already here?” While that sounds like a logical question, the reality is, there is so much more to it. The truth is - There is MORE planning that goes into an exit for the next generation or employees than there is if it is just going on to the open market. A trusted CEPA advisor understands the importance of tax strategies, estate planning and business structure that should be in place to insure the next generation receives a healthy business and the seller gets what they have earned.
