The fundamental goal of exit planning is to strategically grow the value of a business owner’s most important investment. Under Regal’s Value Acceleration methodology, opportunities for growing business value are based upon three criteria that assess not only a business’s attractiveness, but also the owner’s personal and financial readiness to exit.
At its core, value acceleration is a continuous pursuit of strategic business value. It starts with the triggering event, a crucial first step that not only informs the owner of their current business value, but perhaps more importantly, educates the owner on their opportunities to achieve optimal strategic value so that they can realize a successful exit. The triggering event also provides a prioritized action plan that becomes the roadmap for increasing strategic business value.
The main objective of value acceleration is to increase intellectual capital, because 80% of business value is based on intellectual capital. This is a very crucial point because as intellectual capital becomes significant, the business is substantially less reliant on the owner for its success. If you pause to think about it, the correlation between high intellectual capital and successful exits is obvious because, ideally, a buyer is purchasing the business’s internal knowledge, systems, customer base, and market reputation—the elements that will live on. It does not want to buy the owner’s personal value to and knowledge of the business, because that value component is walking out the door!
At Regal Wealth Advisors, we believe that sound exit planning is a crucial feature of our overall financial planning and wealth management services. We offer the skills and knowledge of two Certified Exit Planning Advisors, Mike Zimmerman, President and Founder, and John Packer, Small Business Director. Mike and John are a uniquely equipped team with decades of combined experience in wealth management and small business consulting.
We invite you to contact our office at 717-838-3178 and schedule an appointment to learn more about how our exit planning process—a process that is built upon the Exit Planning Institute’s proven value acceleration program--can be one of your most important business strategies.
By John W. Packer, CPA, CEPA, MBA
 Value Acceleration has been developed by the Exit Planning Institute, the body that awards Certified Exit Planning Advisor (CEPA) designations. Mike Zimmerman and John Packer are CEPAs.