BUSINESS AND TRAINING 25 children would be 14 and 12 . My hope was to sell the business in order to spend time with them before they left for college or their next journey . Second , my wife and I did several analyses and believed we needed USD10-million to do all the things we wanted to do in the future … for our kids , for our charity , for our style of living ( my wife likes to throw lots of parties … oops … I hope she ’ s not reading this ), etc .
So , we conferred with our accountant and attorney , did the math , and realised we ’ d need to sell for USD15- million dollars before taxes to take home USD10-million , considering employee gifts as well as federal and state taxes . We missed the time by a year ( we actually sold in June of 2016 ), but we ended up hitting the goal .
I believe in making my own luck . There is a process . Some put in the work and some do not .
Okay , let us say you want to go along for the ride on this . Where do you start ?
According to the Edward Lowe Foundation , there are a number of steps to the creation of an exit strategy :
First , decide on a target date for a change in your role .
Next , get feedback from your family or investors . If you have loved ones working in or out of the business , they need to be aware of what you are thinking . Plus , it makes you accountable ( always a helpful thing in accomplishing goals ).
Then , create the plan . You can sell the company to your children , to employees or to a strategic or financial buyer . You could merge with another company . For non-business owners , you could plan to get a promotion , a role in a different company , or plan to start a business .
Once complete , publish the plan . Your team members and family members should know your intentions .
One of the best things we did when we sold CMI is making sure the management team knew that our goal was to sell the company and that they would be compensated on any transaction .
Ready . Set . Go . Sign up for Joe ’ s newsletter at www . joepulizzi . com , and you ’ ll be amazed what you learn about marketing and media . PA
Okay , let us say you want to go along for the ride on this . Where do you start ?
January 2021 Volume 26 I Number 11 www . plumbingafrica . co . za