This whitepaper discusses how to evaluate your time frame when it comes to exit strategy and succession planning. For more information please contact the author, Bob Gellman at bgellman@cbiz.com or visit www.cbiz.com

1. Exit Strategy and Succession Planning
How To Evaluate Your Time Frame
By Robert Gellman

2. In the fall of 2006, they agreed it was time to retire. The
key to their retirement plan would be their ability to sell the
business for the sort of values they were hearing it was
worth. Unfortunately, while this seemed like a very good
time to sell, the housing construction boom was at an end.
It became clear that the business was not going to sell at
their target price due to the rapidly declining market.
Much to their disappointment, John and LuAnn had no
choice but to put their plans on hold and weather the
economic storm.
Now is the time to incorporate
exit strategy into your business
decisions. Evaluating your exit
timing has as much to do with
the business environment as it
does with your personal sense
of timing.
Consider the story of John and LuAnn, successful owners
of a production housing construction firm. In 2005 they
experienced their most successful year in the company’s
history. While they believed their success afforded the
many luxuries, the one luxury they didn’t have was the free
time to enjoy the things they loved most.
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Exit Strategy and Succession Planning

3. As a final measure, John and LuAnn have integrated their
forecasts into their business plan. Now they pursue their
planning objectives with an eye toward the timeframes in
which they know their objectives need to be
accomplished.
To evaluate their next window of opportunity, John and
LuAnne have developed a plan to monitor the economic
cycles their business is exposed to. They now prepare a
quarterly economic dashboard that portrays national,
regional and local trends as well as internal business
metrics. Their economic scorecard includes trend lines
that allow them to anticipate the direction and timing of the
upcoming economic climate. The key to their analysis is
the identification of leading economic indicators that allow
them to forecast trends. They also decided that the
interest rate yield curve is particularly useful as their
business is highly dependent on the current and longer-
term interest rate environment.
The bright side to this story is
that now John and LuAnn know
that the best time to sell their
business will be as economic
conditions are solidly in an
uptrend. Given their experience,
they also know that they need to
leave plenty of time in the
business cycle to allow for
unpredictable events, post-
transaction earn out possibilities
and plenty of blue sky for the
buyer to relish.
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Exit Strategy and Succession Planning

4. © Copyright 2009 CBIZ, Inc. All Rights Reserved.
Bob Gellman has advised business owners in matters involving wealth creation
and asset protection for over 20 years. As a shareholder of two companies and
Chief Operating Officer of the firm’s wealth management practice, Bob’s
experience includes his participation in his firm’s succession strategy as it
merged with CBIZ, Inc. in 2005. Bob’s experiences led him to author the book,
The Seven Keys to Unlocking the Door to Your Dreams: Exit Strategies for
Business Owners, which establishes the foundation for his workshop of the
same name. Bob continues his practice with CBIZ MHM, LLC as a CPA,
Director of Tax Services and AICPA Personal Financial Specialist.
About the Author
So, now; How prepared are you to
anticipate the time frames most
important you, your family and your
business? Consider these questions:
- Which business and economic cycles is your business exposed to?
- What are the leading indicators you could monitor to foresee those
cycles impacting your company?
- Where is your industry and company relative to the overall
business cycle and other cycles that it is exposed to?
- How long until your next window of opportunity to maximize the
value of your company in a sale or ownership transition?
Bob Gellman
CBIZ MHM, LL.
(858)795-2110
bgellman@cbiz.com
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Exit Strategy and Succession Planning