Exit Planning For Businesses

Exit Planning

Hi there…

So you’re interested in building a transition plan for your business?…

Are you asking yourself, “What is Exit Planning?“…

If you are like some of our other clients, then transition or exit planning is a new concept to you…

In fact, it is probably fair to say you have spent your life working in the trenches to build your empire, maybe even believing you were invincible…

Probably not as worried about how external factors could negatively impact your business…

And that’s okay…

See we believe it isn’t your responsibility to manage the exit planning process…

At Horizon Ridge Wealth Management, we feel the exit planning process begins with understanding where you started, how you got here, and where you are going…

This can include topics like…

“What would happen to your business if you weren’t here to run it?”…or…

“When is the right time to cash in some chips from my business so you can ensure your retirement isn’t at risk?”…or…

“How do I pull out money from my business if I intend to pass the company down to my family at a later date?”…or…

“How do I increase the marketability of my company to a potential buyer?”…

Whatever the concern is today, it is also probably fair to say that concern may change or compound as time ticks by…

This is why it is vital to understand each of the exit planning strategies available to you…

For those of us who believe our business has become an integral part of our family or family dynamics…

For those who believe our business and our identity have become interwoven…

And for those of us who believe our business is more than just us, but is made up of our suppliers, vendors, employees, customers, and more…

Then transition planning has probably been a distant thought…

Until now…

Chris Snider, the author of Walking To Destiny, cites a study the Exit-Planning-Institute conducted which said “…76% of business owners want to exit their business within the next 10 years, and yet 83% do not have a plan or have not communicated their plan…”

That study goes on to state…

“…of the nearly 80% who want to transition within 10 years, only 20-30% actually complete the transition…”

That means nearly 60% of businesses will die with the founder…

Let that sink in…

That means all of your blood, sweat, and missed family dinners will be valued at $0 if you cannot evaluate, design, and implement a working transition plan…

Of course this leads many clients to wonder…

What does it take to build a transition plan?…

 

Horizon Ridge Wealth Management Investment Management Application

 

While building a transition plan is vital for every successful business owner, we have come to realize that there are critical factors that need to be addressed throughout the transition process…

And this is where Horizon Ridge Wealth Management shines

We understand the intricacies of what it takes to build, run, and transition a business…

Our founders have either built, worked in, or helped maximize enterprise value within, businesses we have associated with over the years…

In fact, we use a specific and detailed process to help business owners:

  1. Maximize enterprise value through ongoing value enhancements…
  2. Design and implement a needs analysis for their business and personal life…
  3. Create a “life after plan” to help you transition from one busy life into another…

We make it our goal to take a very overwhelming process and turn it into an exciting, engaging, and productive series of events that prepare you for each opportunity that may arise…

In fact, we have made our process K.I.S.S approved

You know…

Keep It Super Simple…

While we would like to think positively with every client, we realize that in many cases there are events that can create significant disruption in a your business…

According to the Exit-Planning-Institute the top five disruptions in a client’s business (in no particular order) are disagreement, distress, divorce, disability, and death…

While each is tragic in its own right, these five events are usually outside of your control…

Therefore, the events that could disrupt the operations, finances, and ongoing survival of the company become some of the most crucial events that need to be addressed…

This is when working with a qualified professional who understands what to look for and how to manage all of the moving pieces throughout the transition process is highly valuable…

At Horizon Ridge Wealth Management we employ a Certified Exit Planning Advisor, who has passed rigorous training and testing provided by the Exit Planning Institute…

Now for anyone thinking this credential is just some initials at the end of a name…

You are sorely mistaken…

The Exit Planning Institute is one of the industry’s thought-leaders on the topic of exit planning and offers a certified exit planning designation…

We partnered with them to train our staff on how to help business owners like you prepare for, design, and implement a “growth-focused” system that strives to drive enterprise value and maximize what your company could sell for…

Stated another way, a large part of our exit planning process is rooted in value enhancement which in turn is used to maximize enterprise value to all the stakeholders so the business owner(s) can be in the best position possible to transition their business in any economic environment, for any reason…

Therefore, really valuable exit planning is focused less on the END and more on what you need to do NOW to create value within your company…

Value that a future financial or strategic buyer will gladly pay top dollar for…

While that is all well and good…

You are probably wondering what makes us different

How do we compare to other firms?…

What would convince a prospective client that we can do a better job than those who have blazed this very trail before us?…

Well many of those answers lie in the details of our process

First of all, most of our competitors do not understand the role your business will play in your future personal or business planning…

Second, many do not even understand that your business is your largest concentrated asset…

In other words, if we handed you a pile of money and asked you to invest it…

Would you put 70-90% of it in one company?…

Probably not…

This is where Horizon Ridge Wealth Management continues to shine

By investing substantial hours into learning about your business we can look for ways to help you reduce your high concentration in one company…your company…

Much of the planning we perform for our clients cannot be summarized in a retirement analysis…

Much of the planning we do is not captured in an asset allocation or investment report…

That is simply because…

We DO NOT believe exit planning is retirement planning…

We DO NOT believe exit planning is investment planning…

We DO NOT believe exit planning is budgeting, estate, tax, or any other traditional form of financial planning…

In fact, much of the planning work we perform for clients is so detailed that we integrate, at a minimum, four core pillars of business strategy into evaluating enterprise value…

Then we build, execute, and monitor the projects, tasks, and milestones every 90 days…

But that is only the start…

 

Horizon Ridge Wealth Management Exit Planning - How to Sell Your Business

 

To ensure we truly provide this highest calibre of advice, we conduct extensive interviews with our clients…

Wait…Interviews?…

Yes…

In order to best understand what is most important in your life we conduct a series of interviews that, depending of the nature of the planning engagement, can span different generations, multiple partners, employees, and more…

Though for most people the interviews tend to be confined in the beginning to you, a partner, your stakeholders, your family, and key employees…

Throughout these interviews we learn the most pertinent details about the highest priority concerns before we begin constructing our personal and business financial models…

Then we create models that are designed to assess, improve, and manage external threats that may derail you from reaching your destination…

Once the models are complete we begin to comb through the numbers to construct a S.W.O.T analysis…

Wait… a S.W.O.T. analysis?…

Our S.W.O.T. analysis gauges your personal and business Strengths, Weaknesses, Opportunities, and Threats…

Yes…

See it is only after understanding what you have excelled at and what your weaknesses have been up to this point, can we best understand the opportunities or threats that lay ahead…

At this stage of the process we begin to present some of our findings, which we then continuously refine, until we create a solid, move forward, action plan…

From here we break your action plan into specific topics and design projects with measurable milestones over specific time periods…

This is where we roll up our sleeves and work in the trenches with you, the business owner…

The rest of our process is kept under lock and key…

Much like the videos of the lunar landing and the Area 51 tapes…

Just kidding…

Or are we…

Now your inner monologue is probably saying something like “Well if most advisors do not understand the exit planning process because they are focused on my money and not my business, then I will just figure it out myself”…

We get it…

Your business is your “baby”…

It is the one staple in your life that has been loyal, hasn’t betrayed you, doesn’t yell at you, offers sanctuary, and a handful of other adjectives that maybe compares only to your significant other…

The point is, if you got yourself to this point it might be tempting to think you can carry the torch the rest of the way…

You might be right…

But then you might be wrong…

Think of the “ugly baby” syndrome…

As business owners we all like to believe our business is amazing…

In fact, we may believe we wouldn’t be as successful as we are if it hadn’t been for our ideas, our strategies, our determination, and a whole lot more…

But what if our view is distorted because of our rose-colored glasses?…

In other words, your business is only worth what someone else is willing to pay…

And if your competitors don’t believe your business is all that attractive then you could be in for a rude awakening one day…

Therefore, how unbiased can you be with your company’s current, or future, performance when you are so deeply entrenched in the day-to-day operations?…

Is it fair to say you might miss the forest for the trees?…

 

Horizon Ridge Wealth Management Exit Planning Application

 

Look, we agree that you have been very successful up to this point…

You are only here because you are looking at what you have built, or a loved one has poked you in the ribs, and you want to make sure your company is around for many years to come…

We are sure you would agree that a second, or third, set of eyes on your pride and joy would help you evaluate your market position, product strategy, process efficiencies, or capital expenditures in a different way…

That is why building an exit strategy starts with understanding all of the complexities in your life and then designing a logical, data driven, approach…

Only then can a QUALIFIED exit planning professional confirm what you have done so well, offer suggestions for improvement, and make sure a potential buyer doesn’t call your beautiful baby “ugly”…

Now that might sound like a lot…

You might even be thinking that you don’t need that level of sophistication or complexity…

But we would challenge you to think about all of those successful projects you managed throughout your career…

How many of them were solo acts and how many were achieved with the help of others?…

Were you deeply invested in every step of the process or did you have a central point of communication that allowed you to delegate what needed to be done to key stakeholders in the project?…

Would you have received the same high praise and accolades for the output your team accomplished on your behalf?…

How many sleepless nights would there have been knowing you were responsible for the daily minutia?…

While we have faith in you and your abilities to build a roadmap forward, there always comes a point when your time is better spent on other tasks or on higher priority items like your family or health…

By this point your inner monologue is all over the place and it sounds something like either of these…

“I have survived this long without additional help…”…or…

“Maybe it is time to see if I can do more to grow my business, protect myself and family, and maximize my company’s perceived value…”

If you are in the first camp, then we are not a good fit for you…

And that is okay… maybe you are not in the 80% that want to transition out of their business within the next 10 years…

But if you are in the first camp, then you need to seriously think about and lay out a detailed plan for how to avoid ending up like the nearly 60% of business owners that fail to exit their business…

Alternatively, if you are the second camp and want to look at how you can build enterprise value through human, structural, customer, and social capital silos, then you need to work with a company that is willing to dedicate the time, resources, and energy to understand how important your business is to the world…

This is where Horizon Ridge Wealth Management comes back into the picture…

See we have been down this road with many clients over the last decade…

We understand what it takes to build a transition plan that focuses on building enterprise value, integrates your personal and business goals, and prepares you for “life after” so you can make that smooth transition…

We work with thought leaders, titans of industry, community activists and leaders, and executives that are deeply involved in the day-to-day operations of what made them so successful…

We operate with the highest level of transparency, always putting our client’s interests above our own, and use research that comes from a plethora of independent sources…

In other words, we make it a priority to provide the highest level of service, research, advice, and feedback that is readily available to us…

We aren’t afraid of other companies copying our process, approach, or strategy…

If we can force our competitors to raise the bar and elevate the value they provide to their clients, then we have indirectly helped more people…

 

Horizon Ridge Wealth Management Financial Planning eBook

 

It should be noted that due to our high attention to detail, full transparency, and dedication to every one of our clients…

We limit all of our Wealth Managers to 75 ongoing personal and business relationships…

Furthermore, at Horizon Ridge Wealth Management we feel our Wealth Managers need to have the highest level of education and experience when working with you…

This is why many of them hold multiple designations like, but not limited to,…

The CERTIFIED FINANCIAL PLANNER™ certification…

The Certified Divorce Financial Analyst® certification…

The Chartered Special Needs Consultant™ designation…

The Certified Exit Planner Advisor® designation…

While these certifications and designations do not fully encompass all of our knowledge, they provide a peek into the scope of experience we provide…

At this point we usually hear clients asking…

“How much does it cost to engage you for exit planning?”…

Well this is one the best parts to our approach!!!

Since your strategy is tailored to you

Since your plan is built to maximize the outcome for your financial future

Since your goals are the focal point to our entire planning process…

We can’t give it away for free…

Nor would you want us to…

Have you ever heard the adage… “You get what you pay for?”…

Well cookie cutter outputs do not require much time to construct and tend to be handed out to everyone…

Your situation is definitely not like everyone else’s….right?…

But we also do not charge ungodly amounts either!

There are a number of companies that charge a few thousand dollars to over a hundred thousand dollars per engagement…

Depending on the calibre of the advisor, these plans can range from very well-constructed plans to down right tragedies…

Happily, we can say we are completely transparent in everything we do!

 

Horizon Ridge Wealth Management Exit Planning - How To Sell Your Business

 

So what do we charge?…

Well to fully understand all that goes into our planning process at a 30,000 foot view, by category, we encourage you to visit “Our Pricing” page…

On that page you will find we charge a flat fee rate that includes everything listed on the page, and more, for a fixed cost over a six month engagement…

Then we re-evaluate the engagement at the end of six months to renew or suspend the planning for a determined period of time…

In our experience, measurable outcomes cannot be seen until at least the nine to twelve month period…

Additionally, the scope and complexity of the project(s) will be a factor in the final engagement…

Some clients only need basic levels of analysis and strategies…

Whereas other clients want to roll up their sleeves and dedicate the next 12-24 months to maximizing enterprise value…

Once your Wealth Manager reaches 75 ongoing relationships they are prohibited from accepting any new client engagements…

This ensures the integrity and quality of the advice given to each and every client…

So now the only question you need to ask is…

“Do I want to start the interview process and add Horizon Ridge Wealth Management to my advisory team?”…

It goes without saying that we are always looking for dream clients to work with…

This is why we created an application process…

We know we are not a fit for everyone, and not everyone is a fit for us…

We also only work with a limited number of clients…

This makes it extremely important to ensure we find the right partners…

At Horizon Ridge Wealth Management we want to work with business owners interested in exit planning…

Especially, those who understand how the expertise and experience of highly educated financial professionals can benefit their current situation…

So now you get to decide…

What is holding you back?…

Apply NOW and discover if we are a match…

 

Apply To Become A Client...

Let's Start Building A Better Future, Today!