Exit Planning

If you want to

receive maximum
value for your business,

let the Robert Reid Group help.

If you want to

receive maximum
value for your business,

let the Robert Reid Group help.

Most M & A professionals account for a small company discount in their valuation determinations. The perception is that very small companies are riskier than larger businesses. Generally, it is understood that larger businesses are more substantial and stable organizations because they

  • operate and grow independent of owners,
  • are more transparent, and
  • are better able to weather economic fluctuations.

Because of this risk perception, Business Values of smaller and lower middle-market companies are sensitive to many areas where improvement can be made.

Lowering risk
can generate
higher valuations
and higher offers.

Improving business value exit planning

8 Business-development and Value-building Pivot Points

Financial Performance

Top Line Revenue and Bottom Line Profit and the Quality of Reporting
What is the size of your revenue along with your past and future profitability?

Growth Potential

Future stream of profits
What is the future potential of your business and what are the sources and likelihood of future revenue?

Switzerland Structure

Level of dependence on any one customer, supplier, employee
How reliant are you upon any one employee, customer, or supplier; and how diverse are your customer base and your supply chain?

Valuation Teeter-Totter

Direct relationship of how cash moves through the company and its value
What is the future potential of your business and what are the sources and likelihood of future revenue?

Recurring Revenue

Probability of future revenue
Where will your sales come from in the future?

Monopoly of Control

Control over product or service pricing
How unique and different are your products in the marketplace and what differentiates your business from its competitors?

Customer Satisfaction

Satisfaction and loyalty of your customer
How satisfied are your customers and how likely are they to recommend you and repurchase from you?

Hub and Spoke

Ability for the business to thrive independent of the owner
How dependent is your company on your personally and do managers and employees operate independently of you?

Whether you want to sell soon or just want help building more value for your company, improving specific areas of your business will help you position it to receive the highest value when you are ready to sell.

Give me six hours to chop down a tree and I will spend the first four sharpening the axe.

– Abraham Lincoln

Preparation is the key to receiving the best results in the sale of your business.

Detailed Exit Planning prior to selling your business can provide:

More options to exit

More offers and a higher value

Better deal terms and structure

Easier negotiation of sale price and terms

Maximization of business value prior to sale