Let’s Talk Exit Strategy: How an Anticipatory Accountant Impacts the Value of Your Business
As a Fractional CFO and Anticipatory Accountant, I work with many business owners over long periods of time…from the time they are just getting off the ground until they are ready to step away from their business.
Business owners choose to leave their businesses behind for lots of reasons. Sometimes they are ready to pursue a different passion (and we start again)! Other times they are ready to step away from working altogether. Whatever the reason, these business owners need an exit strategy and a solid one. Simply walking away with a fond farewell isn’t going to cut it.
Selling is often the ideal way to part ways with your business. And a crucial step in the business sales process is the appraisal. This is when a value is assigned to the business and it plays heavily into the offers a business owner receives from potential buyers.
Naturally, every business owner wants to get the absolute maximum sales price possible for their business. They have spent great effort, time, and energy building it and want to walk away with a value that reflects everything they’ve put into it.
The key to unlocking the highest possible valuation of your business is to have accurate, polished financials that demonstrate the value of your business in a clear way coupled with a competent Anticipatory Accountant who can tell your business’s financial story to potential buyers in a compelling way.
And here’s a secret that so many business owners miss that costs them dearly down the line.
Whether you are thinking about divesting your business in the near term or it’s a distant thought for many, many years down the line, the sooner you get your financials in order and seek the advice of a fractional CFO, who can guide your business advantageously into the future, the better off you and your business will be in the end.
An Anticipatory Accountant provides strategic direction that goes well beyond audit and tax functions. They don’t just focus on where you are. They get to know your entire business, they are curious about what you want for yourself, and they are fully invested in YOU.
Business growth carries significant risk. You need a partner in your corner who can help you avoid mistakes, keep you from growing too quickly, and help you ensure that the operational side of your business is ready to handle all the sales that your growth efforts are going to bring. An Anticipatory Accountant is that partner. A fractional CFO services like KBS CFO offers anticipatory accounting services.
Here’s what an Anticipatory Accountant brings to the table that will help you set up the most advantageous exit strategy and get you the highest possible value when it’s time to sell your business.
Proactive Financial Analysis: An Anticipatory Accountant is proactive in every way. They know where your business’s financial performance has been from every angle, past, present, and future. They take that information to identify areas to increase value. They also spot potential trouble areas, particularly from a buyer’s perspective, so those issues can be addressed before they become an objection.
Strategic Financial Planning: More than keeping books, Anticipatory Accountants are able to provide strategic financial planning advice that brings the business greater profitability, optimal cash flow, and streamlined operations. This sets your business up to look as appealing and valuable as possible to potential buyers.
Valuation Enhancement Strategies: The anticipatory accountant identifies specific strategies to boost the business’s valuation. They spot ways to boost revenue, optimize inventory management, and cut expenses. On top of that, your business will have accurate, transparent, and highly organized financials. All of this leads to greater confidence in the minds of potential buyers.
Tax Optimization: Taxes are always a part of the equation when it comes to accounting. As part of an exit strategy, an Anticipatory Accountant considers incorporating important trusted advisors, such as the tax advisor, striving to make the tax implications of the sale understood and aligned with the business owner’s objectives.
Business Transition Strategy: Potential buyers are more motivated by a smooth transition than one that will be fraught with friction. Keeping the new owner’s needs in mind, an Anticipatory Accountant puts all of the documents, systems, and people in order, making for a very seamless transition from buyer to new owner.
Evaluation of Offers: When the offers start rolling in, your Anticipatory Accountant will be instrumental in helping you make sense of them. They have the knowledge and skill set to not only explain each offer fully to you as the seller, but also to negotiate the terms with the business owner’s best interests at heart.
Even if you cannot imagine a day when you would want to sell your business, it makes good business sense to have the support and guidance of a strategic financial partner on your team. And if opportunity knocks, your business will be ready to garner the highest possible valuation and get you a payout that aligns with the lifetime of work you put into building a successful, highly valued business. KBS CFO has a keen interest in the future of your business and is deeply committed to helping you achieve your vision every step of the way. If you’re ready to work with people who are invested in your company long term, let’s talk!