The economy, credit crunch, world global economy, and more, have severely dampened business owners’ enthusiasm for liquidity, possibly retirement and doing something else.  Business owners are paralyzed and aren’t doing anything about it.  Because of the confidentiality of the situation, they don’t know who to talk to.  They fear their employees, customers, competitors, and vendors getting wind of their succession, exit or transition from the business.

These companies better call The Christman Group today!!  Here’s why.  These business owners who are contemplating doing something in the next five years must get on track now!  In some cases, the planning and execution process to achieve all individual, business goals and objectives might take that long to accomplish.

The baby boomers will be coming into the marketplace and present a possible 10 trillion dollars worth of wealth exchange in the next 10-15 years.  More companies on the market mean more competition and fewer buyers for business owners who don’t plan for their exit.  Buyers will have more options and will gravitate to situations where the companies “have their act together” and are prepared for the next ownership generation.

The typical business owner has over 90% of their net worth tied up in their business and 80% of those are not prepared to exit their companies on their terms and conditions.  Many have given little thought or are prepared for the transfer and transition of their business to family members, employees or third parties.  In addition only 25% have started or completed an exit or estate plan.  This is a formula for disaster!

Over the next 15 years, one out of every two businesses will experience a change in ownership.  Over half of those transactions will be forced sales caused by death, disability, divorce or as a distressed sale.  Another formula for disaster
Don’t be one of those statistics!  Here are only some of the reasons you and/or your clients should call The Christman Group to begin the process of being S.E.T. for life:

• Every member is a Certified Exit Planning Advisor (CEPA).  Currently, there are only 92 internationally!!
• Since 2001 they have been pioneers and innovators in the art of Succession, Exit and Transition planning!!
• Collectively, they have over 150 years of successfully helping business owners plan and execute their transition plans!!
• Their model is unparalleled in assisting business advisors and owners in the SET process!!
• They will quickly, but thoroughly assess your situation and start you down the proper path to accomplishing your goals and objectives!!
• There are many more reasons, just do it!!!!

With the aim of becoming a resource for small and midsize business owners, a group of 44 Northeast Ohio professionals is forming the nation’s first local chapter of the Exit Planning Institute.

The Institute is a Chicago-area non-profit with a mission of assisting business owners in planning how they’ll exit their companies. The institute’s Greater Cleveland-Akron chapter is to incorporate in 30 days, according to Christopher Snider, who has led the effort to form the group.

Mr. Snider said the chapter will foster collaboration among attorneys, wealth managers, accountants, and others who will assist what many believe to be a coming tsunami of baby boomers leaving their businesses.

“I know myself that when owners come to me, they’re not prepared,” said Mr. Snider, founder and president of Aspire Management, Inc., a firm in Brunswick that provides exit planning, value enhancement, and investment banking services.” I’d say none of them were prepared when they came to me.

Mr. Snider cited a book titled “The $10 Trillion Opportunity,” which asserts that about 7 million business owners will exit their businesses over the next 10 – 15 years, creating $10 trillion in potential wealth transfer.

The local chapter aism to be an educational resource for business owners and a networking channel for advisors Mr. Snider said. Plus, he’d like the group to develop best practices that can be shared.

I told the EPI, we’ll build a model here in Cleveland, and we can take it across the country and let other Certified Exit Planning Advisors use it,” he said.

Peter Christman, who co-authored “The $10 Trillion Opportunity’ and co-founded the Exit Planning Institute in 2005, calls the Greater Cleveland-Akron chapter the “prototype.” The plan is to establish local groups in other cities, including Miami, Dallas, Atlanta and Detroit, he said.

“One out of two comapnies is going to change hands in the next 10 to 15 years, soall the advisors whether wealth managers, financial planners, CPAs – want to be exposed and get involved in exit planning,” Mr. Christman said.

In May, Mr. Snider hosted an exit planning awareness event, which about 85 people attended. It was there that the seed for the lcal chapter was planted.

On the agenda for the local group are educational events for business owners and advisors. The group also wants to conduct with partnering institutions, research on exit planning, Mr. Snider said.

For example, he’d like to survey private equity firms to see what their experience has been as it relates to companies that have had exit plans in place. did the firms pay more for such businesses? Did they find that those businesses were better because they had a plan?

Harold Maxfield Jr., a shareholder and board member with Cleveland law firm Cavitch Familo & Durkin, is setting up the legal structure of the chapter. He said he joine dfor the opportunity to network and share ideas and clients.

Mr. Maxfield said many of the people he represents possess most of their wealth in the business, which makes exit planning all the more important. However, those owners are involved in running the business daily.

“It’s difficult for them to focus on the next step,” he said.

The answer to that question may delight or disappoint you.

Having helped business owners sell more than 400 companies worth more than $2 billion over the last 30+  years, we have found that there is often a value gap between what an owner hopes to net when selling a business and its market value, i.e., the price prospective buyers are willing to pay.

In our experience, buyers look at 54 different factors as business value enhancers or detractors. In addition to economic conditions and the mergers-and-acquisitions (M&A) marketplace, buyers consider:

• Personal factors, such as owner motivation;
• Business Operations factors, including management team quality;
• Industry/Market factors, i.e., market position;
• Legal/Regulatory factors, such as trademarks; and
• Financial factors, including quality of business records.

Accordingly, we recommend that you obtain an objective business valuation early in your exit planning process. Doing so will give you the opportunity to adjust your expectations or invest more time and resources to enhance your business’s value.

For assistance in developing and implementing a successful business exit plan, contact us today.

After investing years of time, talent and treasure in building your business, do you view the prospect of selling your business (your baby) with a certain amount of dread?  If you do, you’re not alone. In fact, one hallmark of the Baby Boom generation is the degree to which its members personally identify with their work.

That said, a business exit plan is like a two-sided coin. On one side, selling your business will close an intense (maybe even all-consuming) chapter of your life. On the other, exiting your business gives you the opportunity to start fresh and pursue interests and dreams you may have deferred for years.

At the Christman Group, we believe that no business exit strategy is complete unless it includes a personal life plan. In fact, we are unique in our approach to exit planning because we encourage clients to examine their health, family situations and personal readiness (attitudes, beliefs and interests) to begin anew… and to plan accordingly.  Personal goals and strategies are the foundation for our entire exit planning activity.

So what dreams have you shelved as a business owner? Now’s your chance to dust them off and make sure they become part of your life’s next chapter… your new beginning!

Written by Peter Christman, the Original Exit Planning Coach, as well as co-founder of the Christman Group and the Exit Planning Institute, and Richard Jackim, a well-respected attorney, noted investment banker and co-founder of the Exit Planning Institute, the Ten Trillion Dollar Opportunity is an excellent how-to-guide for designing successful business exit strategies.

The book presents a comprehensive framework that owners of privately held businesses and exit-planning professionals will value. It discusses the importance of:

• Assembling a team of trusted advisors, including an attorney, accountant, financial planner, insurance advisor, investment banker and other professionals;
• Careful thinking and planning, addressing the legacy you want to leave and your goals for the future;
• Recognizing and minimizing any value gap, that may exist between what you hope to net on sale and what potential buyers may be prepared to offer; and
• Developing a viable exit strategy that not only reflects your goals but also takes your broader business plan, financial plan, estate plan, tax plan and insurance plan into consideration.

Order your copy of The Ten Trillion Dollar Opportunity today. Here’s how. https://www.exit-planning-institute.org/index.php?content=products&cat=Books

Successful business owners get (and stay) that way by making the right moves, i.e.:

• Finding profitable market niches;
• Offering unique products or services;
• Satisfying customers;
• Utilizing best management practices; and
• Growing the top line.

At the Christman Group, we recommend another smart move: Develop your business exit strategy. It’s the best way to ensure that you’re really set for life if and when the time comes for you to take the leap to sell your business.

A well-considered business exit strategy can help ensure that you:

• Take steps now to maximize your business market value;
• Minimize taxes due when you transfer or sell your business;
• Get out of the transaction what you need (and expect) for your future; and
• Are better prepared for the next phase of your life… your new beginning!

Curious to know how SET for life you really are? Take this free, no-obligation quiz to find out. Click Here to start your quiz!

In one recent survey, 225 of 300 business owners 75 percent — said they regretted selling their businesses. Why? Most blamed a lack of preparation and planning for one of the biggest steps in their lives.

Here are seven common mistakes to avoid, if and when it comes time to sell your business:

1. Not planning ahead, or setting goals for the next phase of your life.
2. Failing to organize financial records and document key processes.
3. Not maximizing the business value, from the market’s perspective, i.e., investing time and resources to increase earnings, ramp up growth and address risks buyers perceive.
4. Selling your business at the wrong time, for you, your family and/or the enterprise.
5. Ineffective marketing, such as poor quality sales materials or advertisements.
6. Handling negotiations poorly, i.e., getting emotional or being inflexible.
7. Trying to do the deal yourself, instead of assembling a team of trusted advisors to help you develop and implement your business exit plan.

The Christman Group has the experience and expertise to help you develop a savvy business exit plan. Contact us today.