Business Strategy: The Importance of Exit Planning

# Business Exit Planning: Maximizing Business Value Now and in the Future

Welcome to our webinar on business exit planning as a strategic approach to maximizing business value in both the present and future. In this session, Frank Fantozzi, President and Founder of Planned Financial Services, shares invaluable insight into the critical role of exit planning in achieving your business goals.

**Key Takeaways:**
1. Who needs an exit plan and when to start implementing it.
2. The importance of making exit planning an integral part of your ongoing business strategy.
3. Determining the right time to transition your business.
4. Strategies for unlocking accumulated wealth.
5. Managing risks associated with the 5Ds (death, disability, divorce, disagreement, and distress) to ensure a successful transition.
6. Techniques for driving wealth creation leading to higher sales multiples.

To download the presentation slides, click [here](https://bit.ly/3WqtXeA).

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**Transcript:**

Good morning everyone! I’m Frank Fantozzi from Planned Financial Services, and today we have an exciting webinar on exit planning as a business strategy. While we may be a minute early, I couldn’t bear the silence any longer. Webinars are quite different from face-to-face presentations, and I almost felt like elevator music would have been appropriate while we waited.

In this approximately 35-minute long webinar, we will explore the essential aspects of exit planning for your business. Following the presentation, we will have a Q&A session, where you can ask any lingering questions you may have. Feel free to submit your questions throughout the presentation.

The key takeaway today is that exit planning is not just a strategy, but an integral part of your business operations. Similar to having a sales strategy, a hiring process, or a growth strategy, exit planning requires careful planning, thought, and execution. It is not enough to dream about exiting your business; you need to make it a reality.

As business owners, our primary focus is often on making money. While that is essential for sustaining our operations, there is a difference between income and adding value to our business. Today, we will explore how to add value to your business and understand that ultimately, exiting your business will be a liquidating event. You need to transform your illiquid asset into a liquid one for various purposes.

It’s crucial to understand that for most business owners, their business is their most significant investment. It usually encompasses more than 50% of their balance sheet. While our firm specializes in managing money and investments, successful business owners have the opportunity to generate a higher ROI with their business. However, given the potential risks, it becomes necessary to de-risk your business over time and secure its value.

Let’s delve into how we got here as business owners. Whether you’re a business owner yourself or a consultant working with business owners, it usually starts with a dream. Many of us want to do things our own way, free from working for someone else. We believe we can build a better business, offering a better product or service. Sometimes, we even joke that running a business gives us half-days off—12 hours of work followed by another 12 hours for ourselves.

Today, we want to emphasize that exit strategies are not just a concept but a business strategy. We will explore the key ingredients and methodology behind exit planning. With a proper understanding of the process, you can apply it effectively to your own business operations or the businesses you consult with.

Before we continue, it’s important to mention compliance. The content of this webinar is for educational purposes only. Any actions you take based on this information are entirely your own responsibility.

Warren Buffett, one of the greatest value investors, once said, “Accounting is the beginning, not the end of business valuation.” Valuation holds significant importance when it comes to exit planning. Looking solely at a business’s fixed assets on the balance sheet can be deceptive. The intangible assets are key in determining the true value of a business and what the market is willing to pay for it. Strong intangibles bring higher valuations, as tech companies without profitability yet demonstrate.

Before we delve further into this topic, let’s discuss the 5Ds. These are the contingencies you need to consider when de-risking your business: death, disability, divorce, disagreement, and distress. Planning for these scenarios is crucial for a successful transition.

Thank you for joining us today, and we look forward to providing you with valuable insights into exit planning as a business strategy. Remember, your business’s value is not solely determined by the income it generates but by the value you add to it.

*Note: This description has been edited and optimized for SEO purposes. Source: [Planned Financial Services](https://www.pfsplan.com/)*

Find out how business exit planning can help maximize business value now and when you’re ready to transition.

Frank Fantozzi, CPA, MST, PFS, CDFA, AIF®, CEPA, president and founder of Planned Financial Services, shares his insight on the critical role exit planning can play in helping to maximize business value now and when you’re ready to exit:

You’ll learn:
*Who needs a plan and when you need to start
*Why make exit planning an integral part of your ongoing business strategy
*How to determine when you and your business are ready to transition
*Strategies to successfully unlock accumulated wealth
*How to improve the probability of a successful transition on your terms by managing the risks associated with the 5Ds (death, disability, divorce, disagreement and distress)
*Ways to drive wealth creation that leads to higher sales multiples

DOWNLOAD the presentation slides: https://bit.ly/3WqtXeA

#exitplanning #businessowner