When it comes to succession, owners and buyers see enterprise value completely differently.

Emily Stubbs of Visibility CFO joins Kim Cochenour to reveal what buyers actually look at first, why a good business isn't necessarily sale-ready, and the de-risking steps that protect your enterprise value.

You'll discover why solving owner dependence five years early gives you more leverage, options, and control over your exit.

• Emily Stubbs sets the stage for the conversation about succession and enterprise value by sharing more about what Visibility CFO is all about.
• Kim stresses that, when it comes to succession, owners and buyers tend to see value differently from one another.
• Owners tend to see the years of sacrifice, effort and growth, whereas buyers see risk, transferability, and cash flow quality.
• Emily touches upon what a buyer first looks at when trying to understand a company's enterprise value – this is something owners often don't see.
• Many owners have the misconception that strong revenue, or strong revenue potential, creates a strong enterprise value and a high price when you sell.
• A good business isn’t necessarily a business ready for sale. Emily explains the difference between the two.
• Emily and Kim talk about what owners should focus on to do their due diligence when it comes to aligning with a potential buyer.
• De-risking is all about identifying the issues that would cause a buyer to lower the price or slow down the process.
• Selling a business is like selling a house: you finally find yourself doing things you have been putting off for years!
• Emily and Kim look at what owners can do today to minimize the risk of surprises when starting the process of getting their firm ready for a sale.
• When it comes to “see” in Tyson Ray’s S.P.A.C.E. framework, there’s a mistake Emily sees owners make over and over again.
• Getting your financials and legal documents in order and solving owner dependence are preparation steps Emily recommends looking into five years in advance.
• Not waiting until a deal is on the table but actually preparing yourself early for succession will give you more leverage, options and control over when, how, and what you exit to.

Links Mentioned in Today’s Episode

TotalSuccession.com

TotalSuccession.com/Podcast

Tyson Ray

Tyson’s book Total Succession: 5 Steps for Financial Advisors to Exit Confidently, Be Fully Compensated, and Keep Clients’ Interests First

Kim Cochenour

Emily Stubbs

Visibility CFO

Book a 30-minute call with Emily and the Visibility CFO team