In the realm of business, "value" and "price" are distinct concepts crucial for strategic decision-making. Fair market value represents a hypothetical worth determined by third-party professionals at a specific point in time, while price reflects the actual amount a buyer is willing to pay based on real-time negotiations and market conditions. Understanding this difference is essential for business owners, as value serves as a benchmark and price emerges from the complex dynamics of buyer-seller interactions. By recognizing these nuances, owners can better prepare their assets for sale and make informed investment decisions.

This article highlights the pivotal role of advisors in guiding business owners’ ventures and encourages them to advocate for entrepreneurs to adopt an investor-centric perspective. By encouraging business owners to view their ventures through the eyes of outside investors, advisors facilitate objectivity, long-term value creation and the identification of strengths and weaknesses. Access to capital (if desired), strategic alignment and accountability are also benefits, ultimately positioning businesses for sustained growth and resilience. Ready for Next's “See Your Business Through the Eyes of an Investor” assessment tool is a practical step for owners to gain insights into their ventures' investor appeal, underscoring the advisor's role in helping an owner succeed.

This is Sean Hutchinson’s personal chronicles the journey of receiving the CEPA designation in 2008, highlighting the challenges and triumphs faced by early adopters in the field of exit planning. Despite initial excitement, the concept of the "exit plan" faced resistance from business owners, prompting the development of innovative strategies like the Value Acceleration Methodology. Through perseverance and collaboration, the CEPA community has grown to 5000 members, marking a significant milestone in the evolution of this specialized profession.

RFN provides a comprehensive roadmap for business owners navigating the complexities of transitioning their businesses. Our Academy has programs highlighting the importance of understanding the spectrum of business transition options. Business owners are advised to evaluate options based on fit, feasibility, likelihood and to seek professional assistance. We believe in further exploration and personalized guidance, empowering owners to approach their business transition with confidence and strategic foresight.

Experts emphasize the importance of living a “heart-heathy” lifestyle – regular exercise, good diet and stress-management practices – to reduce our risk of heart disease. The same basic idea applies to a business. One of the three ways to increase the value or “health” of a company is to reduce risk. This just so happens to come with the added benefit of reducing business owner stress in the long run.

Ready for Next contributor, Julie Keyes, CEPA, has published the second edition of Poised for Exit - A Woman Entrepreneur’s Guide to Business Transition. The materials and resources have been updated to help owners even more.

Learn more about Poised for Exit with this article.

Pick any team sport and there are specific skills needed to be victorious and have positive outcomes. The same is true for any large endeavor.
Transitioning from business ownership is likely one of the largest decisions and processes you will undertake. It is important to have a team around you advocating and supporting you through the experience.

Successfully transitioning a family businesses have dismal statistics. Succession planning in families has built-in complications and yet ongoing legacy depends on it.

Timing is everything and four other tips for growing your business.

“It is a wise father that knows his own child.”

William Shakespeare, Merchant of Venice

Transition readiness is about owners leaving the business on their terms and with the highest value possible.

Lack of proper succession planning is primarily to blame for 70% of family businesses failing to transition between first- and second-generation owners.

90% of all businesses in the United States are family held. Succession planning within the family can add additional elements and legacy can have an additional level of importance.