Managing Value & Leaving a Legacy
For those Business owners nearing exit, a big important life event, we are observing more and more knowledge of the demographics and circumstances around it. Barely a week goes by when a business owner does not approach us to say:
“I have about 18 months or 2 years before I would like to retire:
how can I best utilise my time and resources?”
What this represents is a much greater awareness among business owners of the need to prepare, not pray, for a successful exit. There are some high-value projects we came to so routinely recommend they formed our 21 steps program for exit readiness. We organised these 21 steps into 5 stages, all around maximising the value of the business.
Following on from the Extracting Value, the fifth and final stage in this series is about managing the value of your business in order to achieve a successful exit.
Stage 5: Manage Value
- Step 19 By this time, your asset picture has completely changed. Instead of being dominated by one large investment (your business), you should instead have a large amount of cash to invest. It’s crucial to do this well.
- Step 20 – 21 By this time, you may be in retirement or semi-retirement, and different kinds of risks arise to your net wealth. Plans for care and ensuring your financial legacy goes to the right people (e.g. not a child’s acrimonious ex-spouse!) to name but a couple. You’ve worked hard to get where you are, you must protect it.