• Author Chris Hadjiyianni
  • Year Date 2017
  • Location Waterloo
  • Category Business

This white paper is dedicated to the owner seeking to exit his or her business in style. Acquiring other businesses is a tool that business owners use when growing their own businesses. The operative word is growing, since the purpose of growing your business through acquisition is to increase the value of your existing business.

Recall the first three Steps of The BEI Seven Step Exit Planning Process™:

  1. Set Exit Objectives.
  2. Determine the value of your business.
  3. Increase the value of the business.

This white paper will help you accomplish Step Three.

Growing your business by acquisition can be an effective technique to achieve Step Three. A primary Exit Objective held by almost all business owners is to leave the business when they want and with sufficient cash to provide financial independence for the rest of their lives. In fact, when they leave is usually determined by the point at which they can leave with assured financial security. For most owners, meeting retirement objectives is a function of having sufficient value within the business to permit their departures.

For owners who experience a disparity between when they want to leave and when they are able to leave, an effective shortcut is to grow value by acquiring an additional buyer before becoming a seller. Although paradoxical on its face, the end result of becoming a buyer now may allow you to become a seller sooner rather than later.