Arizona Business Center
Consulting Group
ABC Exit Strategy Simulation

The ABC Exit Strategy SimulationTM

Most business owners know that having an exit strategy is important. Yet, very few do have one. For many, the problem is that the subject of "Exit Strategy" is shrouded in mystery and consultants who promise to unshroud the mystery often take alot of  time  doing it and cost big bucks.

This situation is unfortunate because an exit strategy is really pretty simple stuff. An exit strategy is no more than a business strategy that is focused on just one goal . . . making your business worth what you want it to be worth at a specific future point in time. Your exit plan should be your business plan. And, your business plan should be your exit plan.

Not having an exit strategy or plan is a problem because without one the probability of eventually selling your business at a satisfying price is less than one-in-ten (less than 10%). 

At the Arizona Business Center we facilitate a simple, inexpensive and very effective exit planning process, We call it the ABC Exit Strategy SimulationTM.

How the Simulation Works

The simulation involves a series of probing discussions, stimulating brainstorming and financial simulation of the possible outcomes of alternative business process improvement scenarios. Topics covered include:

  1. What is my business worth today?

  2. What do I want my business to be worth at a specific future point in time (when I will want to sell)?

  3. Exactly how am I going to make my business worth what I want it to be worth?

Diving deep into topic #3 we examine critical questions such as:

·         What are the specific business processes that I need to improve?

·         Exactly how will I improve each process and to what extent?

·         How much time will I invest in improving each process?

·         How much money will I invest in improving each process?

·         What impact will each process improvement have on our cost of goods and operating expenses?

·         How much additional revenue is each process improvement likely to produce?

·         How will each contribution of additional revenue impact the future value of the business?

As each of these topics is explored, the simulation program weighs the impact that alternative decisions may have on the ultimate value of the business.

The End Result

The end product of the simulation is a clear exit strategy that includes:

  1. One exit goal - what the business will be worth at a specific future point in time.

  2. A very short list of process improvements that will be made in order to attain the exit goal.

  3. A budget forecast for investment, costs and expenses and incremental revenue for each process improvement.

  4. A simple step-by-step action plan that will make the exit strategy the driver of day-to-day decisions.

Dr. Roth personally conducts the simulation on-site with business owners and team members and advisors that they desire to include. The process generally requires two to three days and simulation results are delivered electronically immediately upon completion of the process.

For more information on the ABC Exit Strategy SimulationTM contact us.

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