Finding The Clients Exit
Jun 08, 2009
Owners need to PLAN THEIR EXITS in order to get the most value when selling their companies. Just as they need to plan on the legal side for estate purposes and an orderly exit, introducing them to the tools of a good CFO can greatly increase their company value prior to exit.
Business owners with companies less than $30 million or so in sales often do not understand the benefits a strong CFO can bring them in areas ranging from profitability improvement to increasing cash and sales. These owners have bookkeepers and controllers, but their primary role is processing financial transactions and they don't have a CFO's skills in improving profitability, growth and company value. CPA firms offer good basic business and financial advice, but do not offer the tools of a CFO. Many owners don't need full time CFO's but they can benefit from a part-time B2B CFO®.
With company sale price normally tied to EBITDA, a $100,000 increase in EBITDA can lead to increased sale price of $400,000 to $600,000! If your owners have not employed a seasoned CFO, there is good chance they can improve profitability and company value and receive much more at time of sale.
Few business owners or consultants have thought this through - they just decide to sell and get what they can. We have developed a formal process called "Planning the Exit: Maximizing Value and your Company's Future". I believe if you read it carefully, you will agree that we can help your clients improve their profitability and give them a nice extra bonus at sales time.
For more information on "Finding the Exit" contact David Kirkup, Partner with B2B CFO® on 404 348 0326 or firstname.lastname@example.org.