In the mid 90’s I became a CPIM® (Certified in Production & Inventory Management), now have added CEPA® (Certified
Exit Planning Advisor). I am passionate about helping business owners drive value and exit on their terms with maximum value. To that end, I put in the effort to gain additional knowledge the CEPA designation from the Exit Planning Institute.
I’d like to share why this has become a passion for me. As you may know, I have a goal of finding a manufacturing business to buy in the Spokane / Coeur d’Alene area. Through the process of evaluating multiple businesses, I became aware of how unprepared many are to sell. Digging a little deeper into the research confirmed what I was seeing; and it is shocking! Here are a few numbers:
80% of business owners who want to sell fail to do so.
Of the 20% who do sell, 75% are not happy about the sale a year later.
Unprepared businesses leave 50% or more potential value on the table.
These are sad numbers. It’s my mission to flip them for any who wish to engage. The focus is on those things that will make the business sellable, maximize value to the owner and allow them to be part of the 5% who sell and are happy that they did. It takes a team of people to do that.
Those who know me know that in my heart, I am a business operator. I drive value in the teams and operations of businesses. I’m not a CPA, financial planner, or an attorney but in partnership with these key advisors, I do add a factor that multiplies value for business owners and these key advisors both now and at time of sale. Here are potential impacts to advisors:
Business Brokers – success fees come only at completion of a sale and are based on the sale amount. Let’s improve the odds of a sale and the price, both of which benefit you and the client.
CPA’s and Attorneys – a business that cannot sell eventually will simply cease to exist as a client.
Financial Planners – a successful sale at maximum value makes for more assets under management. Add a good process that helps an owner be satisfied with the sale and you will have a rich and happy client.
Please talk to me about clients of yours who may be looking for an exit in the next 5 to 10 years. I am always happy to do introductory meetings. I’ll be reaching out directly to many of you who I know. If we have not met, let’s change that – I look forward to it.
Lowell