Knowing when to act and when not to act is a key component in all important decisions. Likewise, knowing when to keep your business and when to sell it can make a significant difference in the success of your exit and your future financial security. Take the following test and review your answers with a Certified Exit Planning Advisor to ensure your timing is perfect!
1: Have you had your company valued by an independent, knowledgeable party?
Yes (1) No (2)
2: Have you and your financial advisor determined how much money you would need to invest to support your current lifestyle if you retired?
Yes (1) No (2)
3: Are you able to take a vacation and not call the office for a week or more at a time?
Yes (1) No (2)
4: What is the primary source of new business for your company (please select only one)?
- Your efforts and relationships (5)
- Referrals and word of mouth (5)
- Advertising and/or direct mail (2)
- Your marketing and sales team (1)
- eCommerce activities (2)
5: What has been the trend for your revenues and profits over the last five years?
- Increasing (1)
- Decreasing (5)
- Flat (3)
6: Do you have a specific plan regarding what you would like to do after you sold your business (playing more golf doesn’t count)?
Yes (1) No (3)
7: Do your top 5 customers account for more than 30% of your revenues?
Yes (6) No (1)
8: Have you identified which exit option is the most appropriate for you?
Yes (1) No (2)
9: Do you know how much you would net from the sale of your business (after taxes and transaction fees)
Yes (1) No (2)
10: Do you have job descriptions for each of your key employees?
Yes (1) No (2)
11: Have you documented your marketing, sales, operations, finance, and administration processes?
Yes (1) No (2)
12: How is your health?
Excellent (3) Typical Aches and Pains (2) Some Major Issues (1)
13: How is your energy level?
I’m still passionate (3) I feel like a caretaker (1) I’m burned out
14: Have you set a date for when you would like to retire?
Yes (1) No (2)
15: What is the outlook for your industry?
Growing (1) Shrinking (3) Mature (2)
Source: Adapted from Exit Planning Institute
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