1. By Peter Busacca, Washington BBI
Is my business salable? By
Peter Busacca, Washington BBI
The balance beam is a great metaphor for the value of exit planning, and exit planning, at least in this context, is all about making your business enticingly salable. If you focus on the exit, you will likely get there. Focus on your toes, and what happens?
Washington BBI

2. Is selling my only exit option?
Dissolution / Liquidation
Null exit – create a cash cow and milk it from afar
COB Emeritus – shows up quarterly to bark
License the IP or technology –
IPO – “the genie in the lamp” - every tech start-up’s dream!
Or sell the business
Title
Exit options
Buyer types
Buyer’s fears
Strategic buyers
Attributes
Kissing pig
Exit plans
Value of exit planning
Thank you!
Alfred E. Neuman was the mascot for people with no plan. He would not exit plan. What about you? What are your options for exiting?
Washington BBI

3. If you want to sell, who will buy? Five types of buyers
Family Member
Employees
Competitor
Investor:
Individual?
PEG?
Strategic Buyer
Title
Exit options
Buyer types
Buyer’s fears
Strategic buyers
Attributes
Kissing pig
Exit plans
Value of exit planning
Thank you!
If you intend to sell your business, who will you sell to? There five types of buyers. Period. Which is right for you? How do you prepare your business for sale for each type? Which one will pay the most for your business? Why?
Washington BBI

4. What keeps buyers up at night?
Title
Exit options
Buyer types
Buyer’s fears
Strategic buyers
Attributes
Kissing pig
Exit plans
Value of exit planning
Thank you!
If your business is mid-sized or larger, then another, larger firm will likely buy it. If you have a small business, then another individual is likely to buy it. Anything sellers can do to proactively reduce the buyer’s worries will make your business more enticing for sale. It may even increase the price paid.
An individual buyer’s biggest fear is that they will totally mess up!
Washington BBI

5. What do buyers look for? Attributes that entice: Earnings history
Viable business model
Strong management team
Proven market
Proven processes & systems
Proven client relationships
Strategic value
Title
Exit options
Buyer types
Buyer’s fears
Strategic buyers
Attributes
Kissing pig
Exit plans
Value of exit planning
Thank you!
When buyers put your firm under the microscope, what do they look for?
Washington BBI

6. Strategic value?
Ability to plug holes in their product line or strategy
Capacity: Manufacturing or Distribution
Intellectual Property & Processes
Leadership team & employee talent
Location, location, location
Process: Manufacturing or Distribution
Product attributes
Product: complementary sales
Product: cross-sell opportunities
Purchase material discount opportunities
Secure customer base
Secure vendor relationships
Territory / Protected Markets
Title
Exit options
Buyer types
Buyer’s fears
Strategic buyers
Attributes
Kissing pig
Exit plans
Value of exit planning
Thank you!
Firms with strategic value command above-market selling prices. What do you need to do to show future buyers that your company offer proven and exceptional strategic value?
Washington BBI

7. Investors won’t kiss a pig!
What symptoms warn investors off?
Inconsistent earnings over past 5 years?
No business plan?
Poor targeting and execution?
No or poor management team?
Financials no one can trust?
Unreported cash?
Personal expenses on the firm’s P&L?
No exit or business transition plan?
Poor sales/marketing execution?
No or bad operations or systems?
No clear idea of what they are good at?
Title
Exit options
Buyer types
Buyer’s fears
Strategic buyers
Attributes
Kissing pig
Exit plans
Value of exit planning
Thank you!
Buyers don’t want to kiss pigs. Is your business enticing? If not, get help from consultants or business brokers you can trust.
Washington BBI

8. Exit planning helps owners to focus & to achieve goals
Why exit plan? Who cares?
Customers, Vendors & Investors:
Want to do work with firms that will succeed.
Lenders:
Want to believe they will be paid back.
You:
Remember the balance beam?
Eyes on the destination, you’ll succeed.
Eyes on your toes – you will fall.
Title
Exit options
Buyer types
Buyer’s fears
Strategic buyers
Attributes
Kissing pig
Exit plans
Value of exit planning
Thank you!
Ever feel like yours insides just want to scream? Exit planning can help. It is all about 1) building value over time, and 2) preparing your business to be salable to the kind of buyer your want to sell to. There are side benefits. Customers, vendors and enders want to do business with people who know where they are going. Exit planning helps owners to focus and succeed.
Exit planning helps owners to focus & to achieve goals
Washington BBI

9. Benefits of exit planning
Focus on the destination and you will achieve it.
Maximize business value and make more money.
Reduce aggravation. Execute better. Sleep better.
Reduce BSO Syndrome to manageable levels.
Make your business enticing to:
Investors
Bankers
Customers
Business buyers!
Title
Exit options
Buyer types
Buyer’s fears
Strategic buyers
Attributes
Kissing pig
Exit plans
Value of exit planning
Thank you!
Here are some of the benefits of exit planning. They all boil down to increasing value and efficiency as well as reducing aggravation and distractions.
Washington BBI

10. Thank you!
Peter Busacca, MBA Washington BBI 425/ Business transitions and transactions - the business brokers with the end-to-end solution!
Title
Exit options
Buyer types
Buyer’s fears
Strategic buyers
Attributes
Kissing pig
Exit plans
Value of exit planning
Thank you!
It has been an honor to speak with you today. Thank you for your time and attention.
Washington BBI