exit readiness presentation for accountants
DESCRIPTION
How accountants can provide a value added service to clientsTRANSCRIPT
![Page 1: Exit Readiness Presentation For Accountants](https://reader033.vdocuments.us/reader033/viewer/2022061222/54c047f24a795954368b46b1/html5/thumbnails/1.jpg)
Next Level Business Planning
Succession PlanningExit Readiness Planning
Business Sustainability
Business Coaching
![Page 2: Exit Readiness Presentation For Accountants](https://reader033.vdocuments.us/reader033/viewer/2022061222/54c047f24a795954368b46b1/html5/thumbnails/2.jpg)
About Our Principal• Graduate – Eastern Michigan University
• David Saxe is a Chartered Accountant
• Interned with Deloitte Touche
• Has been self employed since 1971
• Cable Television Industry for 28 years
• As a regulatory & financial consultant
• Helped clients buy & sell cable systems
![Page 3: Exit Readiness Presentation For Accountants](https://reader033.vdocuments.us/reader033/viewer/2022061222/54c047f24a795954368b46b1/html5/thumbnails/3.jpg)
What We Do
• Business Sustainability• Value Enhancement• Exit Planning
MAUS AccreditedWe work with you and Partneryour clients
![Page 4: Exit Readiness Presentation For Accountants](https://reader033.vdocuments.us/reader033/viewer/2022061222/54c047f24a795954368b46b1/html5/thumbnails/4.jpg)
Exit Planning - NOTPlanning your exit from the parking lot
after a Heat basketball game.
![Page 5: Exit Readiness Presentation For Accountants](https://reader033.vdocuments.us/reader033/viewer/2022061222/54c047f24a795954368b46b1/html5/thumbnails/5.jpg)
Rental Property
![Page 6: Exit Readiness Presentation For Accountants](https://reader033.vdocuments.us/reader033/viewer/2022061222/54c047f24a795954368b46b1/html5/thumbnails/6.jpg)
Exit Planning – Basic PrinciplePrice & Desirability of a Business are a
function of:
• Profitability
• Trend of those profits
• Certainty of the profits being achieved
• Longevity of those profits
• Transferability of the business
![Page 7: Exit Readiness Presentation For Accountants](https://reader033.vdocuments.us/reader033/viewer/2022061222/54c047f24a795954368b46b1/html5/thumbnails/7.jpg)
The Exit Plan• Only two ways to dispose of a business
• Voluntarily – With Control– Sale– Management buyout– Family transfer– IPO
• Involunarily – No Control– Bankruptcy– No buyers– Creditors take over– Close the doors
![Page 8: Exit Readiness Presentation For Accountants](https://reader033.vdocuments.us/reader033/viewer/2022061222/54c047f24a795954368b46b1/html5/thumbnails/8.jpg)
Unpredictable Events That CouldLead to Involuntary Loss of Business
• Compounded by the 4 “D’s”– Death– Disability– Divorce– Distress
• These Contingencies CAN be planned for!!
![Page 9: Exit Readiness Presentation For Accountants](https://reader033.vdocuments.us/reader033/viewer/2022061222/54c047f24a795954368b46b1/html5/thumbnails/9.jpg)
What is the Opportunity• Baby Boomers are reaching retirement• Successful Entrepreneurs ready to sell
• 40% of Business Owners plan to sell their business within the next 5 years
![Page 10: Exit Readiness Presentation For Accountants](https://reader033.vdocuments.us/reader033/viewer/2022061222/54c047f24a795954368b46b1/html5/thumbnails/10.jpg)
Law of Supply & Demand
• There will be a crowded marketplace
• Your client’s business must stand out
![Page 11: Exit Readiness Presentation For Accountants](https://reader033.vdocuments.us/reader033/viewer/2022061222/54c047f24a795954368b46b1/html5/thumbnails/11.jpg)
Don’t Let Your Client Sell
A Fixer Upper
![Page 12: Exit Readiness Presentation For Accountants](https://reader033.vdocuments.us/reader033/viewer/2022061222/54c047f24a795954368b46b1/html5/thumbnails/12.jpg)
The Case FOR Exit Planning• 75% of Business Owners DO NOT have
an Exit Plan
• Many Senior Family Shareholders have NOT done any Estate Planning
• It’s never too early to create the Exit Plan
• Lack of an Exit Plan is the main ingredient for disaster
• Businesses just aren’t prepared to Exit
![Page 13: Exit Readiness Presentation For Accountants](https://reader033.vdocuments.us/reader033/viewer/2022061222/54c047f24a795954368b46b1/html5/thumbnails/13.jpg)
What is Exit Planning?
• Exit Planning is an Integrated Approach
• Designed to Help address all of the…– Business - Personal– Legal - Financial– Tax - Insurance
Issues involving YOUR client’s business
![Page 14: Exit Readiness Presentation For Accountants](https://reader033.vdocuments.us/reader033/viewer/2022061222/54c047f24a795954368b46b1/html5/thumbnails/14.jpg)
Why Don’t Business Owners Have an Exit Plan?
• Confidentiality• Who can I trust
• Disclosure• Don’t want others to know I’m considering an exit
• Timing• I’m not looking to exit anytime soon
• Too Busy• I don’t have time to plan my future right now
– The relative attractiveness of your business to an end user.
– The readiness level of your systems and documentation to be open to scrutiny by a potential buyer.
![Page 15: Exit Readiness Presentation For Accountants](https://reader033.vdocuments.us/reader033/viewer/2022061222/54c047f24a795954368b46b1/html5/thumbnails/15.jpg)
Why is there no Urgency
• Lack of Awareness
• Need for Education
• They are Intangible Benefits
• Confidential/Private Subject
![Page 16: Exit Readiness Presentation For Accountants](https://reader033.vdocuments.us/reader033/viewer/2022061222/54c047f24a795954368b46b1/html5/thumbnails/16.jpg)
How Do We Inspire Clients to Change?
• Educational Seminars
• Breakfast Series
• Team up With an Exit Planning Firm
• Direct Communication with Client
• Offer an Exit Readiness Assessment
![Page 17: Exit Readiness Presentation For Accountants](https://reader033.vdocuments.us/reader033/viewer/2022061222/54c047f24a795954368b46b1/html5/thumbnails/17.jpg)
How Ready Is Your Client?The First Step
Business Health Check
Exit Readiness Assessment
![Page 18: Exit Readiness Presentation For Accountants](https://reader033.vdocuments.us/reader033/viewer/2022061222/54c047f24a795954368b46b1/html5/thumbnails/18.jpg)
Exit Readiness IndexPinpoints the Weak Areas
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Valuation Expectations
Personal Expectations
Shareholder Goals
Payment Considerations
Immediate Value Readiness
Credibility and Justification
Brand Issues
Marketing Documentation andSystems
Employee and Management IssuesFinancials
Management Systems andForecasts
Company Documentation
Intellectual Property
Contracts
Personal Knowledge
Systems Processes andDatabases
Compliance Issues
![Page 19: Exit Readiness Presentation For Accountants](https://reader033.vdocuments.us/reader033/viewer/2022061222/54c047f24a795954368b46b1/html5/thumbnails/19.jpg)
Questions That Need to be Answered
![Page 20: Exit Readiness Presentation For Accountants](https://reader033.vdocuments.us/reader033/viewer/2022061222/54c047f24a795954368b46b1/html5/thumbnails/20.jpg)
Questions That Need to be Answered
![Page 21: Exit Readiness Presentation For Accountants](https://reader033.vdocuments.us/reader033/viewer/2022061222/54c047f24a795954368b46b1/html5/thumbnails/21.jpg)
Building The Team
![Page 22: Exit Readiness Presentation For Accountants](https://reader033.vdocuments.us/reader033/viewer/2022061222/54c047f24a795954368b46b1/html5/thumbnails/22.jpg)
The Importance of the Accounting Firm
• The Accountant is the most trusted advisor
• You know your clients best
• Your objective is to best serve your client
![Page 23: Exit Readiness Presentation For Accountants](https://reader033.vdocuments.us/reader033/viewer/2022061222/54c047f24a795954368b46b1/html5/thumbnails/23.jpg)
Benefits of the Exit Plan
• Profits Will be Improved
• Business Value Is Maximized
• More Leisure time for the owner
• Business Is Ready To Sell at any time
• Confident Target Sales Price Can Be Achieved
![Page 24: Exit Readiness Presentation For Accountants](https://reader033.vdocuments.us/reader033/viewer/2022061222/54c047f24a795954368b46b1/html5/thumbnails/24.jpg)
Maximum Value
Profitability
+
Sustainability
+
Transferability
![Page 25: Exit Readiness Presentation For Accountants](https://reader033.vdocuments.us/reader033/viewer/2022061222/54c047f24a795954368b46b1/html5/thumbnails/25.jpg)
The Objective
A business that is READY for sale is
A business that the SELLER WOULD BUY
![Page 26: Exit Readiness Presentation For Accountants](https://reader033.vdocuments.us/reader033/viewer/2022061222/54c047f24a795954368b46b1/html5/thumbnails/26.jpg)
Ensure Your Client’s Business is:
• Built to Last For Decades
• Ready to Sell Tomorrow
![Page 27: Exit Readiness Presentation For Accountants](https://reader033.vdocuments.us/reader033/viewer/2022061222/54c047f24a795954368b46b1/html5/thumbnails/27.jpg)
Remember The Fixer Upper?
![Page 28: Exit Readiness Presentation For Accountants](https://reader033.vdocuments.us/reader033/viewer/2022061222/54c047f24a795954368b46b1/html5/thumbnails/28.jpg)
Sell For Maximum Value
![Page 29: Exit Readiness Presentation For Accountants](https://reader033.vdocuments.us/reader033/viewer/2022061222/54c047f24a795954368b46b1/html5/thumbnails/29.jpg)
A Successful Exit
• Maximizes net sales proceeds
• Provides desired retirement income
• Implements estate planning strategies
• Assets and family are protected
• Ability to enjoy life after sale
![Page 30: Exit Readiness Presentation For Accountants](https://reader033.vdocuments.us/reader033/viewer/2022061222/54c047f24a795954368b46b1/html5/thumbnails/30.jpg)
This man has an Exit Plan
![Page 31: Exit Readiness Presentation For Accountants](https://reader033.vdocuments.us/reader033/viewer/2022061222/54c047f24a795954368b46b1/html5/thumbnails/31.jpg)
Don’t Delay
![Page 32: Exit Readiness Presentation For Accountants](https://reader033.vdocuments.us/reader033/viewer/2022061222/54c047f24a795954368b46b1/html5/thumbnails/32.jpg)
Next Level Business Planning
Your Exit Planning Specialist
www.nextlevelbusinessplanning.com