SESSION ONE

Question 1

99% of owners agree that…

Answer 1

having a transition strategy is important for both personal future and business future

Question 2

3 gates of value acceleration method (VAM)

Answer 2

Discover - Prepare - Decide

Question 3

63% of owners …
49% of owners …
70%+ of businesses…
30% of businesses…
12% of businesses…

Answer 3

-plan to transition over next 10 years
-have no written transition plan
-that are put on the market do not sell
-that are family-owned transition to the second generation
-that are family-owned transition to the third generation

Question 4

Two types of CEPAs

Answer 4

Engagers/Collaborators & Value Advisors

Question 5

What is Exit Planning?

Answer 5

Exit Planning combines the plan, concept, effort, and process into a clear, simple strategy to build a business that is transferable through strong human, structural, customer, and social capital. The future of you, your family, and your business is addressed by focusing on creating value today.

Question 6

5-4-3-2-1

Answer 6

5 Stages of the Value Maturity Index
4 Intangible Capitals (the 4Cs)
3 Legs of the stool
2 concurrent paths of relentless execution
1 goal = value

Question 7

5 Stages of the Value Maturity Index

Answer 7

Identify / Protect / Build / Harvest / Manage

Question 8

4 Cs

Answer 8

Human / Structural / Customer / Social

Question 9

3 Legs of Stool

Answer 9

Maximizes Transferable Business Value
Ensures Owner is Financial Prepared
Ensures There is a plan for “what’s next”

Question 10

2 Concurrent Paths of Relentless Execution

Answer 10

Business & Personal
Working ON the business vs. IN the business
90 day sprints

Question 11

1 Goal

Answer 11

Value

Question 12

Relentless Execution

Answer 12

Vision / Accountability / Alignment / Rhythm

Question 13

Strategic Value = Simple Math

Answer 13

R/EBITDA or R/SALES x Multiple = Value

Question 14

Human Capital

Answer 14

Talent/Competency
Experience/Tenure
Management Skills
Professional/Technical Training
Customer/Market Knowledge

Question 15

Value Acceleration definition

Answer 15

A proven process that focuses on value growth and aligning business, personal, and financial goals. Grounded in ACTION

Question 16

What is a deliverable?

Answer 16

An outcome produced by an action. A report, meeting, workshop, event that represents the conclusion of an assignment or step; represents what is being paid for… leads to next steps.

Question 17

Key parts of a balance sheet

Answer 17

> Account Titling (Estate Topics) - trust, family, asset protection
Liquidity Needs (cash flow topics) - cash reserves, surviving spouse and benes, estate tax
Liability Details (capital project funding topics) - behavioral reaction to debt, interest deductibility
Investment planning (growth vs. preservation) - risk & return, entity, income taxes

Question 18

Buy-Sell Agreements

Answer 18

provides for the stability and continuity of a closely held business and is a crucial part of a business owner’s overall succession and estate plan. Protects against death, disability, an outside purchaser offer, termination of employment, divorce.