Mike Benedict, a seasoned business transition advisor at BOK Financial with 26 years as a wealth advisor, shares expert insights on preparing business owners for successful exits. He highlights the importance of a quality earnings review to stage businesses like homes for sale. Discussing realistic valuations, he stresses the need for strong financials and a solid management team to attract buyers. Tax strategies also play a critical role, minimizing capital gains to enhance sales proceeds. This conversation is a must-listen for anyone considering an ownership transition!
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volunteer_activism ADVICE
Pre-Transaction Earnings Review
Conduct a pre-transaction quality of earnings review to prepare your business for scrutiny by buyers.
Hire a CPA to uncover cash flow realities and avoid surprises during sale negotiations.
insights INSIGHT
Realistic Business Valuation
Valuate a business using recast financials and market comps, avoiding outlier offers that skew value.
A median multiplier approach helps set realistic expectations and aligns exit value with retirement needs.
volunteer_activism ADVICE
Create a Sell-Ready Business Early
Build a sell-ready business with strong margins and a deep management team early, not just five years before exit.
This assures flexibility to sell when market or personal events dictate, maximizing value and timing.
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Host Cary Sinnett and business transition advisor Mike Benedict discuss how to prepare business owners for one of their largest lifetime transactions—exiting their business. The conversation covers key aspects of pre-transaction preparation, valuation methods, building a sell-ready business, and leveraging tax strategies to maximize outcomes.
Key Insights
Pre-Transaction Preparation: Use a thorough quality of earnings review—similar to staging a home—to highlight strengths and avoid surprises during due diligence.
Integrated Planning: Blend exit strategies with overall financial and estate planning to manage tax implications and valuation challenges seamlessly.
Realistic Valuation: Rely on recast financials and market comparable to determine a fair, median value that avoids skew from outlier offers.
Sell-Ready Business: Aim for a business that operates independently, with strong margins and a robust management team, to attract quality buyers.
Strategic Tax Optimization: Apply targeted tax strategies and leverage specific IRS elections to minimize capital gains and enhance the net proceeds from a sale.
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