How Can We Help?
How can you help an exit planner?
As an exit planner you are a professional who can assist with the creation and execution of a strategy allowing owners to exit their businesses on their terms and conditions. Exit Planning offers a way to help your clients get the most from their lives’ work, which typically means working to increase the value of the business prior to sale or other transfer.
The value of the business is generally driven by three distinct but interconnected factors: (a) the profitability and net cash flow of the business, with business valuation typically based on some multiple thereof; (b) the growth rate of the business, with sustainable higher growth rates warranting a higher valuation multiple; and (c) the strength of the documented processes and systems of the business being able to continue following the succession, which reduces the risk of reliance on the knowledge and intuition of any departing owners or leaders, thereby also warranting a higher multiple.
Texas Consilium can work with companies considering exit to improve profitability, strengthen processes and systems, and promote growth of the business. We recommend starting this process several years in advance of a planned exit. Beginning an improvement program as early as possible will give you more time to reap the benefits of improved cash flow and growth, and establish a longer history to document the improved company performance to increase the perceived value to potential successors. Higher profitability and reduced risks during transition can also attract many more potential buyers, which also adds value for the owners.
Texas Consilium gladly works with professional exit planners, business brokers, M&A professionals and others and will keep you informed of progress throughout the improvement process. If you own a business and do not have a professional exit planner, we’ll be glad to connect you.