info@exitthefamilybusiness.com
978-369-4800
You may be ready to sell your business, but is your business ready to be sold?
You may be ready to sell your business, but is your business ready to be sold?
"Most family Businesses sell for far less than they should... but they don't have to"
Our Mission
Our Mission is to prepare you for the sale of your business, materially increase the value a buyer will pay, and be part of your trusted advisor team through a successful transaction.
Who WE WORK WITH
We work with the Lower Middle Market, which is typically described as having sales in the $5-$3oM range, EBITDA of $1M-$4M, and 20-75 employees.
WhAT WE DO
The decision to sell a family business is never easy. Selling for the right price can be even harder. Our priority is spending the time to prepare you for sale, which in turn increases the amount a buyer is likely to pay for your business by 30, 40, or even possibly 50% (possibly), then representing you to the proper potential buyers for the proper valuation you deserve.
So WHY US?
The majority of our work at “Exit” is centered around increasing the value of your business before you sell, as experience tells us the majority of you are simply not properly positioned for a sale. This is what makes us unique.
While most successful business owners in the Lower Middle Market have built a Wonderful Business, it is one that was built for Lifestyle, not built for Sale…
There is a big difference. Our focus is not on "selling you", but rather on significantly improving your valuation, then selling you.
M&A firms typically focus on selling you. They are not in the business of "enhancing valuations". They spend virtually no time getting your value to where it should be before going to market. That's a huge mistake.
Ask us what we believe we can do for you...
Value Enhancement:
The 7 Pillars
The 7 Pillars of Value Creation are a tool we use to discover your current Multiple of Value formation that determines the value of all businesses and can help you improve them all.
The Process of Selling
a Business
Selling your life's work can be stressful. Getting it wrong can cost you your retirement. We offer the key to a successful sale and help you sell at your business' maximum value.
Exiting a Family Business
Whether you are selling your family business or transferring it to the next generation, our process will ensure you enjoy a successful, stress-free transition.
Business Valuation
Your business' true value to a buyer will not be what you think it should be. Our Exit Valuation Survey can show you exactly how to increase your business' value to a buyer.
Typical M&A Firm vs. Exit
Comparison Table
(Hypothetical Example)
Our fee for Value Enhancement is a performance-based fee. Our fee for the Sale of the Business is significantly discounted to reflect our Enhancement Fee. Simple. We deliver, you win. We don't deliver on the enhancement of value, you still get a selling commission far less than that from a typical M&A firm. We are in this together.
Take a look at the table below. We've compared the sale of an $8,000,000 Gross Revenue business handled with a typical M&A firm against Exit The Family Business' Process (our Value Creation program and M&A reduced fee schedule).
SALES PROCESS
Typical M&A FIRM
EXIT
GROSS REVENUE
$8,000,000
$8,000,000
EBITDA
$1,000,000
$1,200,000
MULTIPLE
3.4 X
5.0 X
VALUE INCREASE
(As a result of Multiple & EBITDA enhancement)
N/A
$2,600,000
SALES PRICE (EBITDA x Multiple)
$3,400,000
$6,000,000
PERFORMANCE BASED VALUE BUILDING FEE
NA
$490,000
COMMISSION
6 - 8%
3 - 4%
INITIAL FEE
$10,000 - $50,000
$10,000
MONTHLY RETAINER
(CREDITED AT SALE)
?
$3,000 -$5,000
NET PROCEEDS
$3,152,000
$5,300,000
Working with the Exit Team and implementing our 7 Pillars of Value Creation process created an increase of $2,148,000 on the sale price. That's over $2 MILLION that the business owner would have left on the table, benefiting the buyer. You do not want to be "that" guy.
M&A Firm vs. Us
Comparison Table
Our commission is half that of an M&A firm at just 3% and our success fee is based SOLELY on the Value we create for you. So what do these numbers mean for you? Look at the table below.
We've compared the sale of an $8,000,000 Gross Revenue business handled with a Broker/M&A firm, as opposed to Exit The Family Business' Cinderella Project.
Working with the Exit Team and implementing The Cinderella Project gives an increase of $2,792,000 on your sale price. That's nearly $3 MILLION that the business owner would have missed out on, but someone else would pocket. Make sure that isn't you.
It's time to face the truth. If you don't plan your exit correctly, you could end up working behind your desk, literally until you die. Your journey to a successful sale and increasing the value of your business by 30-50% starts with taking our Exit Valuation Survey. This tells us exactly where you are now, the exact performance of your business, and what you need to do to improve the valuation.
You will see your business from the perspective of a Buyer. And while that value may differ from what you have in mind, it is that Buyer's value that matters. Our job is to close that gap.
You'll get your results immediately, plus you can access your Valuation Risk Snapshot and can speak to our analyst team on a complimentary call to discuss your results, increasing value and exit options.
Our Resources
Whether you have questions regarding business valuation, the timing to transition out of your business or how to sell your business, we have a wealth of information available. To gain the knowledge of how to sell your company for its maximum value, access life-changing content including the innovative Exit Valuation Survey, the Amazon best-seller 'Exit The Family Business: How to transform your business built for lifestyle to one built for sale' Book and the other Exit Assets.
The Exit Book
'How to transform your business built for lifestyle to one built for sale' is an Amazon best-seller & provides a systematic process to maximize the value of your business by optimizing each of the 7 key high-leverage areas of your business.
Exit Valuation Survey
The free 10-minute Exit Valuation Survey reveals exactly how your business scores in the 7 Pillars of Value Creation, the breakdown of valuation and its performance. More importantly, it tells us how to improve in each area to increase value.
The Exit Library
This library of case studies and articles contains expert advice to put your business on track.
Discover the secret to increasing value, how to get a successful sale, the difference between built for lifestyle vs. built for sale, and much more.
Why Us?
Why Us?
With a two-prong engagement, you get Value Enhancement and the opportunity to be sold to the most opportunistic Buyer. Most reputable firms (in our opinion) don't want to or aren't equipped to, deal with Value Creation. We've painstakingly developed the perfect process for selling your business at its maximum value, and have a wealth of information available to answer the essential questions determining business valuation, selling a business, and transition. We combine the best aspects of a traditional M&A firm with our revolutionary Exit Planning Services to ensure you get the best value for your life's work. Everyone will exit their business at some point, whether due to choice. health or circumstance - our job is to keep you in control of your exit - where proper timing and positioning are everything.
Trusted - We work to fiduciary standards, putting you first. We help you with every step so you can rely on us as part of your team.
Experience - We draw on over 75 years of combined experience to provide the must-have knowledge across your exit strategy. We have been in your shoes. We understand how much this matters to you and your family.
Unbeatable Value - We don't charge the same way an M&A firm would. Our fee depends solely on the successful sale of your business for FULL value.
Testimonials
There is nothing more important to us than protecting our client's retirement and legacy. Baby Boomer business owners are at risk of having to sell their business for far below its true worth in the current market or working until they're 80, simply because they don't know how to successfully transition out of their business and prepare it for sale. It means M&A firms or buyers can get your business at a steal, and 12 months later, profit millions from your lifetimes work. We set out to put a stop to that, and the feedback from our clients have made it all worthwhile.
T. F. - Danvers, MA
When I first met with Rick, Steve, and the Exit Team, my 35-year-old machine shop was worth a mid $3Million number. 12 months later, I have offers for $5.5-6Million. These guys were a godsend to my family!
Tony Y. - BOSTON, MA
This process works! When Rick began working with my company, we were entertaining mid/high single million-dollar offers from competitors who did not have the cash up-front. After following the 7 Pillar System, and bringing in the Exit Team & legal colleagues, we successfully sold the company within 9 months for a “mid-teen million dollar” cash figure, where EBITDA was increased and the multiple was 1.5-2 points higher.
As Featured
© 2022 ETFB. All Rights Reserved
*The Lower Middle Market is comprised of businesses worth $5-$30 million, typically having EBITDA of $1 million - $4 million.
The 7 Pillars of Value Creation is our name for our work as Business brokerage services and related consulting pertaining to business sales, mergers, acquisitions and business valuation. Exit The Family Business the downloadable guide and any accompanying assets or affiliates are provided for informational and educational purposes only. It is not intended to provide tax, accounting or legal advice, nor is it an offer or solicitation to buy or sell, an endorsement or sponsorship of any company, security or fund. Certain owners, officers or affiliates may be associated with investment firms and may make referrals from time to time for such services, but this does not constitute investment advice, nor should it be construed as Exit The Family Business being in that business. We always suggest you seek professional advice. Past results are not a guarantee of future results.