As a business owner, you likely have a substantial portion of your personal net worth tied up in your business. So, when do you start thinking about a cash-rich exit?  I’m back for another solo episode on I’m a Millionaire! So Now What?”, to discuss five fundamental questions that every business owner needs to answer to have a cash-rich exit in the next 3, 5 or 10 years:

 

1. How is your business set up?

Whether you’re in startup mode, a sole proprietorship, or a corporation, you need to think about how the structure of your business will impact your exit down the line. Are you selling an asset or shares in a business?  It’s important from a tax perspective to know how your business is set up – and whether you’ve outgrown the structure you started with. I can help.

 

2. What is your business worth?

Do you know the value of your business? Would you be able to attract a buyer that looks at your future cash flow? How do you calculate the value of your business?  Is it higher due to the strategic possibility of an acquire? I can help you sort out the baselines. Reach out to me for more information or to discuss the 8 drivers of business value (you can also listen to the podcast Introducing Value Builder).

 

3. What happens if there's an unexpected tragedy?

A tragedy can affect you as a person or your business, it could be something that happens to a key employee or management team, your partner or even a family member. How will you manage? Do you have wills and Power of Attorney set up or buy/sell agreements with your partners? What about dealing with taxes? To find out how to mitigate against unexpected tragedy, you need to listen to the episode (or get in touch with me directly). 

 

4. What does your exit look like?

Have you considered how you’re going to exit? If your personal net worth is tied to the value of your business, how do we unlock that value and put it on your personal balance sheet? What options are available to you and how can you optimize these from a tax perspective? How do you find acquirers? I can support you before, during and after your exit at O’Connell-Campbell Wealth Management at RBC Dominion Securities.

 

5. What happens after you exit?

This is a more personal, reflective question to get you thinking about what life looks like after an exit. So many of us have wrapped our identity and our life in our businesses. Myself included! If I stopped managing investment portfolios and providing estate planning advice, or releasing podcasts :-), what would I do? Maybe you think of exiting as retirement, or a way of finding more freedom and time. Do you take up a hobby, create another business, become a mentor?

 

As you know, my goal is to support cash-rich exits. My Big Hairy Audacious Goal is to double the number of cash-rich exits in Canada. Have your say in the upcoming Double to Sell Program in November or reach out to me directly.

 

I'd love to chat with you and share the eight drivers of business value to support that cash-rich exit scenario.

 

If you have something to share with the Self-made Nation, including your own successful cash-rich exit, do reach out and connect with me. Whether you’re at the helm of a thriving business or startup, looking to exit, or simply want to recommend yourself or someone else as a guest, I’d love to hear your story!