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Atlantic Canada's Business Transition Specialist

SINCE 1998

Exit Preparation

All business owners know that they will one day exit their business and that it is imperative that they plan an exit strategy that will enable them to leave on their own terms and at a time of their choice. Despite this, only about 10% of owners of small and medium size businesses have a written exit plan. The reasons for this are many but the most commonly stated are the owner’s lack of time and not knowing where to start.

Fortunately, CBI has developed an exit preparation process that will relieve business owners of both of these concerns.

In the CBI Exit Prep process, the experienced CBI Team will work with you to:

  • Develop an understanding of your personal, family and financial needs and goals.
  • Review the exit options available and select the most advantageous option for you.
  • Determine the present value of your business.
  • Complete a pre-exit due diligence process to ensure that the business is ready for transition when you are ready to leave.

The Process:

  • Understand your needs and goals. Whether or not an exit plan works often has nothing to do with finances, taxes or corporate structure. The plan that succeeds does so because it addresses the special personal, family and financial needs of the owner.
  • Select the best exit option. Entrepreneurs were not granted immortality; you will exit your business. There are many ways in which this can be done but unfortunately, most business owners don’t make exit preparation a priority until a crisis occurs or until someone else is in control of the process.  When that happens many of the options will no longer be available. The CBI Team will work with you to choose the exit strategy that best accomplishes your goals.
  • Determine the present value of your business. Effective exit planning cannot be done without including a valuation or market price analysis. CBI’s experience in the market place, from managing and observing thousands of transactions, puts us in a unique position to interpret the forces of supply and demand and to recommend price and terms that are realistic and achievable.
  • Owner’s Due Diligence. Due diligence is the process by which a buyer or other successor is given access to detailed information about all aspects of the business in order to verify information supplied by the owner and to identify potential risks and problems. This process consists of detailed investigation into the operational, financial, legal and strategic components of the business. The CBI Team will assist the owner and his/her professional advisors in identifying potential problems so that they can be rectified  before  they are discovered by a potential successor and result in a failed transaction.

The Result:

Participation in CBI’s Exit Prep Process will result in the maximizing of the value of the business, increased likelihood of a successful transition and the achievement of the owner’s personal and financial goals.

The ROI:

Participation in CBI’s Exit Prep is a cost effective method of preparing the way for a successful ownership transition of your business on your terms when you want to do it. The cost will vary depending on the size and complexity of the business and it will provide an excellent ROI when you consider the increased value realized and retained on exit.