Exit Consulting Group Blog

I’m trying to rent my house this summer for a month so the family can go on an extended vacation and I just had a “ah ha” moment.  It started when there was an interested couple that called on our ad and wanted to see the house.  My wife took the call, did the pre-screening and set it all up but then was called out of town.
I felt I could handle the meeting and when they called I made sure the house was clean and the boys room was straightened up.  Once they arrived I took them[......]

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Pride, as well as chocolate, are both great as long as they are held to moderation.  Pride is a great thing to see (watch any college football game and you can see all the kids showing their pride) and even better to experience.  We all have felt some type of pride whether it is school pride while watching a game, in our country when a Navy ship comes into the bay carrying our US military men and women home from a long tour of duty or our kids and what they have become.
Pride in ourselves, our p[......]

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Every business owner has their highs and lows, good and bad days, and during those days of exhaustion every business owner has considered throwing in the towel.  Sometimes the weight of continually pushing the business up hill turns on us and the financial debt rolls back over us.  We all understand and we have all been there.  It just a matter of if we want to get back up and push again or quit.
When you consider leaving and closing your business instead of selling it there are a few choices to[......]

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I have been working with family run businesses for quite a few years now and found that there is a pattern developing in why I see businesses fail to sell.  I believe that the KISS (keep it simple stupid) theory to analysis gets the point across to the impatient and overly stressed entrepreneurs, so let me explain.  The main reason that I see businesses fail to sell usually falls into one of the categories of the bible’s 7 Deadly Sins.
Whether you are a Christian or not the bible does have some [......]

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Before agreeing to represent a new client, I ask myself two critical questions.  The First is; will my efforts to prepare the company for sale result in increased profitability, better management tools, opening new markets, retaining key employees, and other metrics by which the potential client will gain more value than the cost of my services?  Fortunately, the answer to this question is fairly easy given my experience.  If the client is willing to take my advice, then my services will more th[......]

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A fact of the finance world today is that community oriented business banks are under tremendous financial pressure with more than 40 failing in the first quarter of 2010 alone (according to the FDIC).  The reasons for this are numerous and well documented in the press; abundance of poorly performing  real estate and small business loan portfolios, enhanced regulatory requirements, failure to provide services competitive with large banks (like mobile banking, online banking, ubiquitous branch ac[......]

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Regardless of what you are selling the price and terms are key to making the transaction successful.  When buying a house the sales price brings the buyers to the table but then financing, cost allocation of repair work, fee sharing, warranties, etc. (referred to as terms) is what will either make or break the deal.  The same is true when selling a business.  The sales price starts the negotiations but the seller financing options, list of assets included in sale, fee sharing, non-compete and co[......]

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Many times a month, and it was usually on pay days, I would wonder why I went into business for myself.  As I signed everyone’s paychecks but my own and my employees left for their weekend, I wondered if it was really worth it.  Now I was never a very good employee myself as my independence and inability to do something “just because I told you too” was not the ideal employee personality trait. 
Not only was my personality a challenge but I chose to work in the accounting field (Big 8 audit firm[......]

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A NDA is a term thrown around a lot during the beginning of the business sale process.    It’s very important that you understand what it is and what it is not before you go into battle.  First, I need to qualify myself here as I’m not an attorney and this is not legal advice.  I am only giving you my opinion from a practical perspective of this legal document.  To start, attorneys understand and explain the law but it is up to the individual owners on how they use this information.  I’m more of[......]

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To maximize your business value, thus sales price, you need to understand what you’re selling.  Most small businesses are selling a job (freedom to be their own boss) instead of an opportunity (make a lot of money).  The more a buyer perceives an opportunity for growth then the higher the sales price will be.
Let’s look at the difference between a job and an opportunity.  A job is somewhere that we go to provide a monthly income through wages.  Those wages can be hourly, salary or commission bas[......]

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