Arizona Business Center
Consulting Group
ABC Exit Coach

The ABC Exit CoachTM


When it comes time to sell their business, some owners (particularly less experienced ones), require the extensive services that a good business broker can provide. Those services are expensive in terms of fees and commission; but if an owner needs them . . . then they need them and that’s that.

On the other hand, more experienced business owners are often quite capable of selling their business themselves. Working with their team (attorney, accountant and a consultant or advisor), they take responsibility for their own transaction and they save the substantial brokerage commissions that would otherwise be involved.

The Arizona Business Center offers a consulting service that we call the ABC Exit CoachTM to support those experienced owners.


How Much Can an Owner Save?


Utilizing the ABC Exit CoachTM and managing their own transaction, an owner can save hundreds of thousands of dollars on a smaller transaction and possibly one million or more on a larger one. Here are a few example based on typical brokerage fees versus typical ABC Exit CoachTM consulting fees:



Selling Price
of the Business		  $1,000,000  $10,000,000  $20,000,000
Typical Brokerage Commission            10%                7%              5%

 

     $100,000      $700,000   $1,000,000
Typical ABC Exit Coach Fee       $25,000        $75,000      $125,000
Typical Owner Savings       $75,000      $625,000      $875,000



This comparison is based on typical fees. Naturally, actual costs will vary based on the size and complexity of the sales process and transaction and other factors.


How the ABC Exit CoachTM Works


Dr. Roth personally provides our ABC Exit CoachTM services. He tailors the process to the unique needs of each client. It generally includes (but is not limited to) the following steps:

  • Decide that it is time to sell (commit to doing that).
  • Decide how to sell (or otherwise recover your equity).
  • Value your business (based on a real valuation performed by an expert) and set your price and terms.
  • Rethink your tax strategy (to show profit rather than shelter it).
  • Think about confidentiality and the degree to which it needs to be maintained.
  • Trade out some process improvement team members for new team players who are expert in preparing, packaging and selling your business.
  • Get the books and other important records in order.
  • Get the business in order – paint up, fix up and train up.
  • Get your sales presentation package assembled, polished and ready to go.
  • Assure that your management can carry on and give them the incentive to want to do that.
  • Coordinate your financial planning for the business sale with your personal financial plans.
  • Identify the full universe of high-potential buyers and start building relationships with them.
  • Identify the full universe of high-potential intermediaries, who can introduce buyers, and start building relationships with them.
  • Receive offers.
  • Negotiate.
  • Accept an offer and help the prospective buyer through their due diligence process (and possibly renegotiate as part of that process).
  • Get your deal done.
  • Thank the team (preferably tangibly) that made your sale happen.


For more information on the ABC Exit CoachTM contact us.

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