Many firms focus on issues that affect them right now, such as marketing, HR, sales, cash flow, and so on. Having or formulating an exit strategy for them is unrealistic since they do not expect to sell their company anytime soon. However, you cannot avoid departing your business, and research found that over 70% of businesses had no exit strategy at all. Having an exit strategy plan as soon as necessary can benefit you and your business since you will have a clearer picture of what your business will be in the future, giving you recommendations on how to develop it today.

In today's podcasts, Kit invited Gerald Radican of Veritas Financial, and Rick Scruggs of Financial Designs and they talked about the importance of having an exit strategy in your business. The episode starts with telling background information about our guests and what are the benefits of formulating exit strategies for your business. They also share the ideal Time Frame to set to have a successful exit strategy and what are the factors to look at during the set time frame. They notably said that in every business, solutions, and processes are different from each other as they said no one solution fits all. They also share some case examples from their experience and lastly they provide some insights and lessons learned from their many years in business.

If you're interested in learning more about organic growth, growth by acquisition, or the increase of capitalization of your company, this will be interesting and useful for you.


Key Takeaways

The Benefits in Collaboration with Firms That Can Advise Exit Plans in Businesses.
The Optimum Time Frame in Selling Business and The Factors To Look at
Doing Due Diligence is Still Important in the Exit Plan Strategy
The Difference between Our Guest from The Others
Challenges and Big Lessons That The Guests Learn in This Business Journey

Quotes

Every situation is going to vary. It's going to depend on the size of company ownership, and tax status as an S-corp or C-Corp. So one size does not fit all. - Gerald

It's lonely at the top, in the sense that you have no one on your team to talk to about succession, selling the business, or planning to sell the business until the moment is right. -Kit

I would say that what differentiates us is We run a personal financial plan parallel to a business plan every time we work with business owners and we come in often to find out that no business owners ever really do a personal financial plan. - Gerald

What sets us apart from other businesses is that we want to listen first, then ask excellent questions before offering answers. - Rick

Featured on this Episode

Christopher Lisle
Growth strategy advisor for the ecosystem of investors, IBanks, and the companies they work with (middle market).
Linkedin: https://www.linkedin.com/in/kit-lisle
Websites: Acclaropartners.com / http://strategicgrowthcouncil.com/
Contact: kit@strategicgrowthcouncil.com / 703-867-7269

Gerald J Radican
Partner At Veritas Financial
Profile: vfwealth.com/team/gerald-radican
Linkedin: https://www.linkedin.com/in/gerald-j-radican
Website: https://vfwealth.com

Rick Scruggs, CLU, ChFC, C(k)P
Partner At Veritas Financial | Principal at Financial Designs
Linkedin: https://www.linkedin.com/in/rick-scruggs-clu-chfc-c-k-p%C2%AE-5257a729
Website: https://www.financialdesigns.com/

Book Mentioned in the Episode
The Checklist Manifesto By Atul Gawande
Link: http://atulgawande.com/book/the-checklist-manifesto/

Words from our Sponsors

Thanks to our sponsors Acclaro Growth Partners, a strategic consulting firm serving middle-market mergers and acquisitions. You can visit acclaropartners.com. Our other sponsor, of course, is Strategic Growth Council, not the podcast, but the Peer Advisory Council slash virtual roundtable slash mastermind group for senior execs and business owners. Contemplating what an acquisition, a sale, or just strategic growth? Strategic Growth Council collaborates with participants in the M&A ecosystem, such as private equity groups, lenders, investment banks, and relevant service providers. Visit strategicgrowthcouncil.com to learn more.

Chapters
00:00 Introduction
02:07 Rick’s Background
03:01 Gerald’s Background
05:31 The Benefits of Having an Exit Plan
07:08 Fair Market Value
10:17 Good Time Frame for Selling the Business
13:42 Factors to look at during the Set Time Frame
16:03 Due Diligence is important
17:25 Different size, Different Process
22:58 Insights from Experience and Mistakes
25:20 Case Examples
28:13 Differentiating our Guests From Others
32:24 Challenges and Big Lessons From Our Guests
40:34 How to Contact the Guests
41:54 Conclusion

This podcast was produced by Heartcast Media.