2. Maximizing business value
• For mid-sized and small businesses, the business
will never have much value if:
• The company cannot run for an extended time without
the direct involvement of the owner
• Profits are not sufficient to fund the purchase of the
business and a reasonable salary for the new owner
• This paradox is shown on the next slide
2
3. Too low on either aspect yields a low sales price and a
poor exit strategy
You
3
4. What’s the solution?
• Get the business profitable and running well without
the owner. This yields two options:
• Sell the company for a maximized value
• Continue to run the business as the CEO Emeritus
4
5. What is a CEO Emeritus?
• Does the work she wants to do
• Doesn’t do any work she does not want to do
• Draws an excellent paycheck
• May sell the business or simply continue collecting
“royalties”
• More importantly, the CEO Emeritus can always
sell the business for an excellent price at a later
time
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6. Becoming a CEO Emeritus
• You may have an opportunity to help clients
move towards CEO Emeritus status
• If the client is not currently a CEO Emeritus,
much work needs to be done including:
• The owner is not doing Emeritus work. The current
work is part of the problem.
• The owner needs to delegate this work and do the work
of the CEO Emeritus
• Most likely, this Emeritus work is not being done at all,
or being done far too infrequently
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7. The CEO Emeritus Work (The 16 Hats)
1. Super-closer 9. Chief Model Officer
2. True CFO 10. Model Implementer
11. Key Relationship
3. Visionary Holder
4. Chief 12. Decider
Strategist/Planner 13. Marketing
5. Mentor Mastermind
14. Frontman
6. Chief I.P. Officer
15. High-level Floater
7. Cheerleader 16. Technology
8. Standard Bearer Mastermind
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8. How to get there?
• Most businesses will have two issues – they need
to increase profits and do it while the owner is less
involved day-to-day.
• Use the chart on the following slide to determine
where to start and move up the chart vertically or
horizontally.
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