After one year of beta testing with privately owned Arizona businesses, the state-of-art ABC Exit Strategy SimulationTM is now available nationwide.
In announcing conclusion of beta testing and the national launch, ABC Managing Director, Robert Roth, Ph.D. stated “Just about every small business owner knows that having a good exit strategy is critical if they hope to eventually sell their business for a satisfying price. Nonetheless, very few owners know how to craft an optimal exit strategy or how to pursue it. We developed the ABC Exit Strategy SimulationTM as a fast and inexpensive solution and our beta testers have been excited over the results.”
The simulation involves a series of probing discussions and a financial analysis that runs “what if” scenarios for each of those discussions.
Simulation discussions center on three topics:
1. What is my business worth today?
2. What do I want my business to be worth at a specific future point in time?
3. How am I going to make my business worth what I want it to be worth?
• What are the business processes that I need to improve?
• Exactly how will I improve each of those processes?
• How much time will be required to make these process improvements?
• How much money will be required to make these process improvements?
• How much will each process improvement contribute to revenue and profit growth?
• How much will each process improvement increase the potential selling price of my business at the end of each of the next five years?
As each of these questions is explored, the simulation weighs the impact of possible alternative decisions on the likely future value of the business. As the business owner identifies the best combination of process improvement alternatives the simulation provides them with a very specific exit strategy that includes:
1. One exit goal – how much the business will be worth (and by what date).
2. A short list of business process improvements that will be made in order to attain the exit goal.
3. A budget for each process improvement, including capital investment, cost of goods, operating expenses and incremental revenue anticipated.
4. A simple step-by-step action to make the exit strategy happen.
Dr. Roth developed the ABC Exit Strategy SimulationTM and he personally guides business owners through it. The process generally requires two to three days. Simulation results are delivered immediately upon conclusion of the process and the average cost for a complete exit strategy simulation is $6,000, plus travel expenses.
