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Inside the Exit: Best of 2021 

Submitted by Lisa Fannin on Mon, 12/27/2021 - 9:01am

As we prepare for what is to come in the new year, it is interesting to look back and see what topics got the attention of advisors. In this week’s blog, we highlight some of the most popular content we published in the last year.  

Sales to Co-Owners or Key Employees: The Disadvantages  

Although an inside sale might seem like the right decision for a business with a strong management team in place who already understand how the business operates, be sure to weigh all your options. When considering what exit path might be right for your business owner clients, be sure to consider the owner’s financial security, timeline, tax consequences, goals, and potential successors.

In this blog series, we discuss the disadvantages and advantages of a third-party sale and an inside sale. This blog in particular highlights the specific disadvantages of the sale to co-owners or key employees. Another blog in this series that caught a lot of attention was the first blog in the series: Transfers of Ownership to Children: The Advantages.

As you start or continue working with clients in 2022, be sure to think about the pros and cons of different business transfer types for their situation. You might find that the owner’s initial plans aren’t the best option.


Money Isn’t Everything for Business Owners

It is important to help your business owner clients set values-based goals to help ensure their values stay intact well after they part with the business. Values-based goals cover important issues including family harmony, charitable intentions, and community involvement. Be sure your owner clients are handing off their company to the right buyer by defining clear values-based goals before you go to market.  

In this blog, we outline what values-based goals are, why they are important, and how to establish them with your clients. If you aren’t taking this approach with client already, set a goal for yourself in 2022 to start investigating values-based goals with your business owner clients to get them on the right exit path. 


Involve and Lead Expert Advisors

Compiling the right Exit Planning Team of advisors is a critical step to a successful exit. We all have areas of expertise where we feel the most confident. A good advisor will admit when their knowledge may fall short in certain areas and know how to bring on the right resources to complete the team in order to create the most comprehensive Exit Plan.  

In this blog post, we walk through the list of advisors you should have on your roster to invite in when you need their expertise. Having a relationship with different advisors helps you gain credibility, referrals, and knowledge in different areas of the Exit Planning industry. Start making a list of advisors in your network that you could bring onto a team for your clients and build a plan for outreach in 2022.


Can You Slay Your Client’s Deal Killer?  

Have you ever taken your owner client's business to market only for the deal to go up in flames because of a minor oversight? It happens and in this blog series, we uncover the Deal Killers any seasoned advisor is bound to run into and how to avoid them.   

In this particular blog, we uncover one of the most common Deal Killers that many of our BEI Members run into, which is an owner’s focus on sale price rather than net sale proceeds. Learn how to spot the signs that you might run into one of these deadly killers. Stay committed to slaying Deal Killers before they slay your client's deal and potentially their entire future.  


Make Planning Simple for Owners 

In this blog, we look into a scenario where a business owner is simply too busy to start planning for the inevitable exit from their business and what their trusted advisor did to help them prepare for the future. 

Business owners will most likely not give you the time of day until they can be reassured you can solve the problems that are keeping them up at night. Listen to your clients and prospects, understand where they are struggling, and help them solve one problem at a time. This will pave the way for them to have enough time to start planning for their future. Before the new year begins, review your process and how you plan with clients. Are there ways to make it easier for them to get engaged with the work? 


If there are any other specific topics you would like us to cover in 2022, send us a suggestion.  

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