The Urgent Need for Exit Planning

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According to the Exit Planning Institute, in the next five years $9 trillion will change hands as business owners exit their privately-owned businesses.

Exit planning refers to the process of determining the best route for selling or transferring a business to successors while also ensuring the business owner’s comfortable retirement.

Creating an exit plan should precede the business owner’s exit by at least 5 to 10 years and requires several advisors, including a Certified Business Exit Consultant (CBEC) ® to “quarterback” the process, an Attorney, Certified Public Accountant (CPA,) Certified Financial Planner (CFP,) ® Chartered Life Underwriter (CLU,) ® Certified Management Consultant (CMC,) ® and others to help the business owner visualize their best succession and exit strategies.

96% of business owners agree that having both an exit and succession plan are important for the future, yet 87% have neither. For this reason, about every business owner can benefit from talking with an experienced Certified Business Exit Consultant (CBEC.) ®

Most business owners are not adequately informed, do not thoughtfully plan for their exit, and, consequentially, leave a lot of money on the table, as illustrated by these additional statistics:

  • The average business loses 27% of its’ value when it sells, in large part, because it does not have a plan;
  • 20% to 30% of businesses that go to market sell, leaving up to 80% of business owners without solid options for realizing the highest possible value of their business or ensuring continuity of the business into the next generation; and
  • Only 5% of business owners are happy with the net proceeds from the sale of their business; moreover, 76% have profound regrets one year after exiting their business.

Not only does the business owner suffer when a business owner fails to plan, but so do family members, customers, employees, and other stakeholders.

An owner who is informed and ready to sell their business, on the other hand, increases the odds that the business will survive a transition to new owners and allow the business owner to retire comfortably and without regret.

 

James J. Talerico, Jr., CMC ® CBEC ® and CEO of Greater Prairie Business Consulting, Inc., has one of few “performance-based” firms in the US offering exit and succession planning services for privately owned businesses of any type and can collaborate with business owners and their professionals and/or help them build an outstanding team of exit advisors.

Jim Talerico’s comprehensive exit planning consultation includes:

  • An opening conference to quickly get the exit planning consultant up to speed about the business, followed by a review of the business owner’s legal, accounting, and personal financial documents;
  • Several owner surveys to ascertain the business owner’s “mental readiness,” “personal financial readiness,” and “the business’ readiness” for the owner’s exit;
  • An “estimation of value” * of what the business could be worth. [* A formal business appraisal would be extra.];
  • A calculation of the owner’s ability to comfortably retire after the sale of the business, or to identify the business owner’s “value gap,” followed by a discussion of practical solutions;
  • A detailed explanation of the five – (5) different exit options – including the positives and negatives of each option and the associated tax consequences;
  • A customized exit plan that outlines short-, intermediate- and long-term recommendations for facilitating the transaction and improving the business; and
  • One-(1) year free support to help coordinate the experts, facilitate the owner’s exit, and provide general advice regarding their exit transaction;

Jim’s firm signs a confidentiality agreement with each client, ask for no money up front, and guarantees the business owner will be satisfied with his services:

“We are confident about offering this “performance guarantee” … unrivaled in the industry … because, unlike most exit planners, we work with business owners every day.”

Often Jim’s exit planning assessment can identify ways a client can be more profitable, so his clients have nothing to lose and much to gain from working with Greater Prairie Business Consulting, Inc.

If you go to www.greaterprairiebusinessconsulting.com you can view a video summary of  the firm’s comprehensive exit planning assessment, take their free assessments to learn about your mental, financial, and business’ readiness for exit, and download the firm’s exit planning brochures.

If you do not have enough money to retire, Greater Prairie Business Consulting, Inc. can employ proven growth strategies to maximize business’ revenues, profits, and shareholder value.

It is never too early to learn about ways to make your business more valuable, transferrable, attractive, and ready for exit. Talking to a Certified Business Exit Consultant (CBEC) ® like Jim can be the best business call you ever made.

 

 

James J. Talerico, Jr. is an award-winning author, speaker, and a nationally recognized small to mid-sized (SMB) business expert.

With more than thirty- (30) years of diversified business experience, Jim has a solid track record and an A+ BBB rating helping thousands of business owners across the US and in Canada tackle tough business problems to improve the performance of their organizations.

His client success stories have been highlighted in the Wall St. JournalDallas Business JournalChicago Daily Herald, and on MSNBC’s Your Business. He was named “Texas Business Consulting CEO of the Year,” by CEO Today Magazine, identified as a “Top 10 Management Consulting Entrepreneur to Watch in 2023” by Entrepreneur Magazine, was listed among the “10 Most Visionary Companies to Watch in 2023” by Inc. Magazine, and has also been ranked among the “Top Small Business Consultants” followed on Twitter.

For more than half a decade, Jim was a regular guest on “The Price of Business,” a nationally syndicated radio program on Bloomberg Talk Radio and has also appeared as a subject matter expert on many FOX Radio interviews. He is a regular contributor to several blog sites and has frequently been quoted in publications like the New York Times, Dallas Morning News, Philadelphia Inquirer, The Entrepreneur’s Review, and on INC.com, in addition to numerous, other industry publications, radio broadcasts, business books, and Internet media.

Jim received a Gold “Stevie Award” for “Thought Leader of the Year,” a Gold “Stevie Award” for “Media Hero of the Year During Covid” and a Bronze “Stevie Award” for “Best Entrepreneur” in the Category of “Business and Professional Services” at the American Business Awards ® in New York City. The competition received more than 3,700 nominations and is the premier accolade for business excellence in the US honoring organizations of all sizes and industries. Jim also received an “Outstanding Leadership Award” at the Money 2.0 Conference for his contributions to the financial services industry.

Jim is the author of “8 Steps to Becoming An ETHICS FOCUSED ORGANIZATION,”™ a small business certification program that utilizes a unique eight – (8) step approach for strengthening ethics in any organization. The certification program won the Better Business Bureau’s “Torch Award for Ethics” for the North – Central Texas Region, the Better Business Bureau’s “International Torch Award for Ethics”, and a Gold “Stevie Award” for “Ethics in Sales” at the International Sales & Customer Service Stevie Awards ®. Participants who complete this certification program are eligible to receive eight – (8) continuing education units from the University of Texas’ Division of Enterprise Development.

His public speaking experience includes The Better Business Bureau (BBB) North – Central Texas Chapter, The International Association of Better Business Bureaus (IABBB,) The Institute of Management Consultants (IMC USA,) The Collin County Small Business Development Center (SBDC,) Success North Dallas, First Friday’s Book Synopsis – Dallas, Texas, American Subcontractors Association (ASA) – Houston, Texas Chapter, and several local Chambers of Commerce (COC.)

He is also a Certified Management Consultant (CMC) ® and an active member of the Institute of Management Consultants. The Certified Management Consultant ® mark is awarded by the Institute of Management Consultants USA (IMC USA) and represents evidence of the highest standards of consulting, a commitment to continuous development, and an adherence to the ethical canons of the profession. Less than 1% of all consultants in the world are Certified Management Consultants (CMC) ®. [Click Here for IMCUSA’s Code of Ethics.]

Jim currently serves as the IMC Dallas – Fort Worth Chapter President and has actively participated on different IMC USA national committees.

He, moreover, completed his ISO 20700 Self-Declaration Checklist Training from the International Council of Management Consulting Institutes (ICMCI.) [Click Here for Greater Prairie Business Consulting, Inc.’s ISO 20700 Self-Declaration Check List Template.]

He received his Certified Business Exit Consultant (CBEC) ® designation from The International Exit Planning Association (IEPA) to help entrepreneurs, small business owners, family businesses, and middle market companies maximize their business exit. [Click Here for IEPA’s Code of Ethics.]

Jim has, furthermore, served as a strategic advisory board member to several “for-profit” and “non-profit” organizations, Judge for Texas Consilium’s Business Excellence Awards, Judge & Judging Chair for the International Sales & Customer Service Stevie Awards ®, and has volunteered his time to numerous humanitarian causes.

Jim has a B.A. in English & World Literature from Rutgers University, a B.S. in Business Administration from Thomas A. Edison University, and he is in the process of completing his M.B.A. from the University of Texas – Arlington.

 

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