Walk Away Wealthy: The Entrepreneur's Exit-Planning Playbook
The essential guide to selling your business--and walking away with maximum wealth Nearly every entrepreneur dreams of one day selling their business for big bucks, but far too many aren't aware of exactly what it takes to do so. The sobering truth is that it's very easy for the entrepreneurs who don't know what they're doing to walk away from a sale without the financial freedom they hoped for. In fact, only about 20 percent of businesses for sale will successfully transfer to another owner!
In Walk Away Wealthy, Mark Tepper--a leading authority on wealth management and financial planning for entrepreneurs--shows you how to build a strong exit plan, an absolute requirement if you hope to get the full value from a sale. Tepper's twelve secrets debunk myths and deliver practical advice as he walks you through what most people don't know (or refuse to believe) about the process of planning their exit. And although it's best to start planning the exit as early as possible, the book also delivers advice for those who may have waited too long and feel lost in the face of a rapidly approaching sale.
Selling the business you worked so hard to build can be a confusing and intimidating proposition. Let Mark Tepper clear away the misconceptions, steer you clear of common mistakes, and help you walk away wealthy!
company. The parties agree that the seller will be credited 30 percent of that $500,000—or $150,000—on his EBITDA. Now when the deal closes, instead of getting $4 million, the seller gets $4.6 million. Shared synergy has put an extra $600,000 dollars—four times that additional $150,000—in the seller’s bank account. If he hadn’t known that he was entitled to the value of those synergies, he might have been snowballed in a sale and lost out on that extra cash. As you can see, there are many
you with a comprehensive list. Assembling all these materials may seem like a headache, but it’s an important part of a critical process that will reveal things you need to know about your business—and that will help you extract the greatest value from it when the time comes. EXIT 911 Even if you’re a year or less away from your exit date, my advice is the same: Get an open market valuation immediately. There’s not much you can do to improve the value of your company in such a short time, but
teaser or an executive summary. This doesn’t identify your company, but it identifies your industry, some details about the company, and your financials (both revenue and EBITDA). If the prospective buyer expresses interest in learning more, the IB sends a confidentiality agreement. This is one of the big differences between working with an investment banker and a business broker. Many brokers will send confidentiality agreements with the client’s name on the cover—but of course, disclosing the
that had put together a portfolio reflecting the value of all of his investments. He handed me the document, and I began looking it over. Securities? Check. Savings? Check. Real estate? Check. But something huge was missing. “This financial plan is completely inaccurate,” I told the prospect, whose eyebrows went up. I explained to him that the other firm had left something out: his business! In developing a financial strategy for his future, they had completely ignored an asset worth more than
Josh, 72–73 peer groups, 60, 228–29 personal relationships, 200, 219, 222, 226, 229 Pinnacle Equity Solutions, 180 planning for the unexpected. See unexpected events post-exit activities. See also emotional attachment to business; post-exit startups cautions about, 225 consulting, 211, 228 Exit 911, 230 goal-setting, 227 going back to work, 231 nonprofits, 118–19 personal relationship focus, 200, 219, 222, 226, 229 remaining with the company, 67, 96–97, 220, 228 risky behavior and,