4 reasons how a transition plan could DOUBLE the value of your business

Here are 4 reasons why every?#businessowner ?needs a transition plan, regardless of when they plan to transition:

1. Two-thirds of businesses are owned by baby boomers and most plan to exit in the next 10 years. Only 20% of businesses that go up for sale will actually sell. The better prepared you are, the greater your odds are that you will be one of those 20% that sell.

2. 50% of all businesses sold happen because of some "unexpected event" (death, disability, divorce, disagreement with business partners, distress in the business). You need to be prepared for the "unexpected."

3. Without a "roadmap", it is impossible for owners to know if they decisions they are making are actually helping or hurting the business or increasing or decreasing the value. One example - is a business owner who "graciously" gave his daughter a 25% ownership interest in the "crown jewel" facility of his business years before he tried to sell and was unable to do so when he wanted to sell because to do so required over 75% shareholder approval (on the sale of real estate) and the daughter refused to sell. He did not realize the consequences of his decision until it was too late.

4. Often, the actions needed to be taken to increase the value of the business to the desired target take years to fully implement or create the benefits that compound take over. Planning five years in advance may seem like a long time, but time goes by quickly (5 years only = 60 months). Less time to prepare = Less Value.

Post from: Kevin Pendergest, CEPA?- Certified Exit Planning Advisor, Helping Companies Solve Problems, Grow, Increase Profits & Value | Helping Business Owners Transition.