Arizona Business Center
Consulting Group
Exit Coach
Arizona Business Center Launches

The ABC Exit CoachTM

Phoenix, Arizona, March 6, 2008

After two years of development and testing with Arizona business owners, the Arizona Business Center is offering its ABC Exit CoachTM to owners of privately held businesses who want to manage their own sale.

In announcing the new consulting service, ABC Managing Director, Robert Roth, Ph.D. stated “New technologies are making it increasingly easy for experienced business owners to sell their own businesses. The ABC Exit CoachTM provides them with the highly personalized knowledge and tools that they need.”

By utilizing the ABC Exit CoachTM to manage their own transaction, an owner can save hundreds of thousands of dollars on a smaller transaction and possibly more than one million dollars on a larger one.

The following is an example of typical brokerage fees versus the consulting fees that are typically involved in ABC Exit CoachingTM 


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

 

At a Selling Price of $1,000,000, a typical brokerage fee or commission could be about 10%, or $100,000. A typical ABC Exit Coach fee would  be about $25,000, a savings of $75,000. At a Selling Price of $10,000,000, a typical brokerage fee or commission could be about 7%, or $700,000. A typical ABC Exit Coach fee would  be about $75,000, a savings of $625,000.

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

Dr. Roth personally delivers ABC Exit CoachingTM services. The process generally includes the following steps:

  • Decide that it is time to sell (commit to doing that).

  • Decide how to sell (or otherwise liquidate your investment).

  • 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.

About the Arizona Business Center

The Arizona Business Center Consulting Group (www.AzBizCenter.com) consults in small business planning and management through its proprietary ABC ProfitPathTM model. It also provides ABC Exit Strategy SimulationTM and ABC Exit CoachTM services to business owners who seek to maximize the value of their business and to harvest the full measure of that value through an optimal sale.

For More Information Contact:

Robert Roth, Ph.D.
Managing Director
Arizona Business Center Consulting Group
rroth @ AzBizCenter.com
480.287.6009

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Key Words

Small, business, Arizona, exit, strategy, coach, selling, sell, consultant, advisor, Robert Roth, Ph.D., ABC, simulation