For Every Business Owner
Who Deserves The Ultimate Pay Day
ATTENTION BUSINESS OWNERS:
Do You Have An Exit Strategy?
Would You Like To Sell Your Business One Day?
How Much Is Your Business Worth and …
Will Someone Buy It?
For Business Owners who want to maximise the sale value of their
business, retire with more cash in the bank… and enjoy more
lifestyle choices… the time to act is now!
What’s My Business Worth?
One of the most common questions new clients at The Exit Strategy Group ask our consultants is “How much is my business worth to sell?”
It’s not a question that can be answered simply. There are many factors that need to be taken into account when determining the value of a business. It’s not enough to ask simply what the business is worth and expect a number to be plucked from the sky.
Calculating the true worth of a business requires an in-depth investigation of many factors that will influence the total present value.
Key factors to consider include total sales volume, profit and lost statistics over at least five years (if the business has been trading for that long), trends in sales and profits, external factors that could influence the value, competitive analysis, competitor comparison, total value of assets, value of intellectual property, ongoing litigation proceedings (either for or against the business), and far more criteria points.
This is why it’s always best to consult with expert business valuers such as those you will find at The Exit Strategy Group. Our team are very experienced in valuing businesses of all kinds, and the methods employed generate the most accurate valuations you will ever see.
Attempting to work out your business value on your own may save you a few dollars but it could end up costing you many thousands if you do a less than perfect job of the calculation.
Why an accurate value is so important
The business valuation is an essential component in setting a sale price for the business. If your valuation is higher than what a buyer will credibly believe the business to be worth, the buyer is unlikely to be enthusiastic about buying your business. Selling will be delayed, if you eventually do sell at your inflated price, you will have lost a lot of time and coped with a lot of stress while you were waiting.
When the price you set is too low, you’ll be getting a poor return on all the hard work, money and time you invested into the business that you built. That’s unfair to you and something you can avoid happening.
In both cases, there is an undesirable outcome. The too high valuation can result in delays and frustrations, while the too low valuation can leave you inadequately rewarded.
The easy solution
The easy and obvious solution is to leave it to the experts to prepare your accurate business valuation. When you do this, you can be confident that the value is as near to the true value as it is possible to get, and this will give you much more confidence when setting your selling price.
Knowing that you have set a realistic price, you should expect to achieve a timelier sale while also maximising the income you receive from the sale.
The price is not the price
When you sell your business, you don’t get to keep all the money from the sale. The first thing that will take a bite out of the money you receive is the agency fee charged by the selling agent (you could sell without an agent, but it is likely to take longer and expose you to more risk).
After this, which is not likely to be an unreasonable sum, you will then have to pay Capital Gains Tax (CGT) on the sale of the business. This most likely will be an unreasonable sum, but it is what it is.
Finally, you’ll also eventually pay income tax on the money you receive from the sale. In total you may end up paying a lot in taxes and fees, so even when you sell your business for what it’s worth, you don’t actually get what it’s worth.
A good selling agent can help you with this by using his or her knowledge of the market to help you obtain a better price than the valuation. The key thing is not to be greedy or, as mentioned earlier, it will be harder to sell and will take longer.
The price that is set should be just a bit higher than the accurate value, but not so high that it deters somebody from making the purchase. This is a skill that agents develop over the course of their careers, enabling them to know what price to set according to the dynamics of the market.
They can’t do that before you provide them with an accurate business valuation, however. Which is why it’s essential to get your business valuation sorted out well in advance of when you plan to sell the business.
The Exit Strategy Group can assist in working out how to calculate what your business is worth, how to value your business, business succession planning, how to sell a small business and transition planning.
In this breakthrough book, you will discover there’s more to a profitable
exit strategy than just selling your business…with answer to these and
many more myths believed by countless business owners :
Myth #1: I don’t need an exit strategy until I’m ready to sell my business
Myth #2: I can’t afford to dedicate the time involved with exit planning
Myth #3: The wealth of my business is defined by how much I earn
Myth #4: If I have a growth strategy, why do I need an exit strategy?
Kerry Boulton, CEO and Founder of The Exit Strategy Group and NEXUS Business
Coaching, is Australia’s most respected exit strategy advisor. With over 20 years in
business as an entrepreneur, transformative coach and consultant, sought-after
speaker and talented facilitator, Kerry wrote The Uncensored TRUTH About Exit
Strategies to help as many business owners as she can to monetise the wealth that’s lying in their businesses.
The Uncensored TRUTH About Exit Strategies details how to build a strong and
successful exit plan, which is an absolute must if you want to get full value from
any sale. Kerry exposes and debunks many myths and gives you practical advice. She
walks you through what most people don’t know – or refuse to believe – about the
process of planning their exit.
Kerry believes exit planning is a process, not a destination. She helps you overcome
challenges you’re likely to face as a business owner and most important, the steps to
ensure you find financial freedom and do not become just another statistic.
The Cold Hard Facts You NEED to Know If You Want To Sell Your Business Someday
81% of Australian business owners plan to retire in the next 10 years
53% of them have no exit strategy
22% will shut shop*
How To Increase The Value of Your Business By Up To 71%* In Just 24 Months …and Have the Biggest Pay Day of Your Life
*Based on actual client results to date
Are you ready for the huge wave of business sales looming on the horizon and a lot of potential competition? Buyers will be picking and choosing only the best. Email info@TheExitStrategyGroup.com.au and ask for your FREE Value Builder Report.
AND…when you order your FREE copy of my book, The Uncensored Truth About Exit Strategies” you’ll find out …
…there’s a lot more to your Exit Strategy
than a succession plan or just selling your business…
You’ve worked hard for years building your business. You know how much value you’ve created and it’s worth plenty to someone who can take it to the next level.
The question is – how do you even start thinking about your exit plan when you aren’t anywhere near ready to exit or sell your business?
The gap between the idea of selling – or creating any sort of succession plan – and actually getting the deal on the table on your terms and at the time you want – can be very wide and very deep.
The fact is…only 20% of business owners who say they plan to sell their business ever make it their ultimate pay day.
That’s a very sobering statistic. Will you be in the 20% who do?
Many business owners simply don’t know what they need to know to prepare for succession, transition of ownership and exit. Exit strategies are not just about making money, Business owners often have other goals such as establishing a legacy, ensuring the business remains in their family, or continuing to have a say in what happens in the business.
…No matter what exit strategy you choose – you can guarantee your best outcome by simply this: PLANNING IN ADVANCE. There are immediate benefits to getting started preparing your exit strategy. You don’t have to wait for the exit date before claiming more of your wealth!
Exit strategies are something every investor looks for… The questions are the same – no matter what the size of the business. How am I going to get my money out?And how much are you going to get as the owner?
Having an exit strategy worked out in advance helps ensure you like the answers to those questions and gives you some control over your business’s future.