90% of the owners of closely held companies who are over 55 don't have a formal exit plan. They don't know what their personal strategy is and haven't put together a business strategy to support their needs when they exit the business.
It is a complex and somewhat emotional issue. This presentation breaks the process down into its fundamental elements and the priority of the activities an owner must undertake to have a well thought through exit plan.
2. • According to a 2008 study conducted by Atlanta based White Horse Advisors
and Vistage International, 96 percent of boomer business owners agreed that
having an exit strategy was important — but 87 percent did not have a written
plan.
29% of owners believe they have an adequate group of advisors to help them plan their exit or
transition
50% of privately held businesses in the study were over $11 million in gross sales
• Transitioning to a new role or exiting their business can be a very stressful
activity that requires a 3‐5 year window to properly plan and implement
Disagreements with partners
Lack of support from employees
Dizzying array of methods and options to exit or transition
Transition planning or exiting the business through proactive planning and
leadership can provide significantly higher enterprise value for privately held
companies and net worth for the owners
Group50 Consulting
Los Angeles, CA
(909) 949‐9083
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ACCELERATING ORGANIZATIONAL PERFORMANCE AND STRATEGIC EXECUTION
Some Thoughts
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3. What is your vision for you and your
company 3‐7 years from now?
• Carrying on your legacy
• Sell all or part, merger
• Flourishing as a stand alone
• Providing you with predictable and
sustainable returns in retirement
• Guided by you in a new role as
Chairman, advisor or functional expert
• Doing what you love to do in the
business
EFFECTIVELY ACHIEVING YOUR VISION AND STRATEGIES TO TRANSITION
Planning Your Exit Or Transition
• Something else…..
Group50 Consulting
Los Angeles, CA
(909) 949‐9083
Group50 Consulting All Rights Reserved 2014 Confidential
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4. • There are two strategies that are required for successfully planning an
exit or transition:
The strategy for you as an owner
The strategy for your company
• The strategy for you as an owner will define what will happen after
your exit or transition:
Reliable cash flows
A liquidity event
A new role doing what you love to do in the business on a part time or full time
basis
Minimizing tax consequences
• The strategy for your company needs to be designed to support your
strategy
Group50 Consulting
Los Angeles, CA
(909) 949‐9083
Succession planning
Maximizing enterprise value (EBITDA and multiple)
Preparation for a liquidity event
Sustainability
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EFFECTIVELY ACHIEVING YOUR VISION AND STRATEGIES TO TRANSITION
Planning Your Exit Or Transition Strategy
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5. Your personal exit or transition strategy needs to
focus on:
Required Now:
• The desires of you and your partners
• Buy/sell agreement(s)
• Providing flexibility to choose the type of liquidity event you want and
the timing for it
2‐ 3 years prior to an exit or transition event:
•
•
•
•
Estate planning
Taxation
Succession
Partial or full sale
Group50 Consulting
Los Angeles, CA
(909) 949‐9083
Group50 Consulting All Rights Reserved 2014 Confidential
EFFECTIVELY ACHIEVING YOUR VISION AND STRATEGIES TO TRANSITION
Planning Your Exit Or Transition Strategy
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9. An operational advisor who can:
• Help craft the long term
strategy for the owners and
the business
• Identify and work with the
experts needed to implement
your plan
• Project manage the strategic
implementation
• Prepare the organization or
the business for the transition
• Train and develop new leaders
• Bring another point of view to
the table
• Provide the operational tools
that every successful business
needs
Group50 Consulting
Los Angeles, CA
(909) 949‐9083
Estate Planning
Corporate Structure
Funding Partner(s)
Business Attorney
Sell Side M&A ‐ ESOP/MSOP
Transaction attorney ‐ Contract Attorney
Legal Advisor
Sell Side M&A
Owner
Project
Management
Financial Analysis
Dispute Resolution
Due Diligence
Corporate Governance
Wealth Management
Capitalization Expert(s)/Funding
Maximize Enterprise Value
Funding Buy/Sell Agreements
Succession Planning,
Organizational Development
Accounting ‐ Valuation ‐ Taxation Experts
Strategic Planning and Execution
Financial Advisor
Group50 Consulting All Rights Reserved 2014 Confidential
EFFECTIVELY ACHIEVING YOUR VISION AND STRATEGIES TO TRANSITION
Planning Your Exit Or Transition
Operational Advisor
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11. • Assessment
Work with you and your legal and financial advisors to finalize your vision and
strategy
2‐4 days depending on the size of your business utilizing interviews and
operational audits
Identify the gaps
• Create the roadmap
Provide the actions needed to satisfy the end game
Develop a timeline
• Define where you need additional resources to implement your
vision and strategy
• Contact Jim Gitney, CEO of Group50 at 909‐949‐9083 or email him at
jgitney@group50.com
We work with company owners to effectively define and implement
their personal and business strategies and accelerate performance
Group50 Consulting
Los Angeles, CA
(909) 949‐9083
Group50 Consulting All Rights Reserved 2014 Confidential
EFFECTIVELY ACHIEVING YOUR VISION AND STRATEGIES TO TRANSITION
Group50’s Approach
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12. We work with company owners to effectively define and implement their personal and
business strategies and accelerate performance
• A ten year old consulting company that specializes in:
Exit and Transition Planning
Strategic Execution
Maximizing Enterprise Value
• Headquartered in Los Angeles with over 20 consultants throughout the United
States
All former operating executives from world class companies such as GE, Black & Decker, Avery
Dennison, Apple Computer, Morgan Stanley, Fidelity, AT&T and others
Most have held C‐Level positions including Chairman, Board Member and Advisory Board
Consultants who are fluent in over 10 languages
• Areas of Expertise
Strategy and its execution
Operations
Continuous improvement (Six Sigma, Kaizen, PMO)
Corporate Finance
Manufacturing and Distribution
Coaching and mentoring business owners
• We provide our clients with support services as:
Consulting resources, Project and Program managers
Interim Executives
Board members and Advisors
Group50 Consulting
Los Angeles, CA
(909) 949‐9083
Group50 Consulting All Rights Reserved 2012 Confidential
ACCELERATING ORGANIZATIONAL PERFORMANCE AND STRATEGIC EXECUTION
A Bit More About Group50®
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