We Help Entrepreneurs Create a Growth & Exit Plan that Maximizes Their Wealth and Exit Options

SCHEDULE CALLExit Planning Exercise

Having options is the result of creating a plan with the end in mind… here’s how to start

Schedule a Call

Get to know us and share your vision for the future of your business and life over a phone call or in-person meeting. Ask us anything you want to get comfortable with our team, experience and approach before making any decisions.  Schedule a call HERE

Business Case & Scope of Work

After reviewing some preliminary documents and information we present a clear picture of your current state and our team’s ideas to get you where you want to go. You’ll have a clear vision of what your growth and exit plan will look like and what it will take to build it.

Create a Growth & Exit Plan

Our multidisciplinary team puts all hands on deck to work with you and the necessary stakeholders. You’ll clearly able to see how every decision impacts where you want to go. Your plan is immediately executable because we refine the recommendations until reality matches your goals.

Leverage Our Growth and Exit Planning Process to Take Control Over Your Exit and Maximize Your Life’s Work

Step 1: Build a Foundation

  • Kick-off call with team
  • Conduct complete legal / business discovery / due diligence / audit
  • Setup virtual data room(s), account and profiles in The Value Advantage™ platform

Step 2: Develop and Meet Your Team

  • We leverage our multidisciplinary team during the planning process to collaborate with various backgrounds and disciplines. We eliminate conflict, encourage brainstorming and therefore optimize your plan and future possibilities.
  • You do not have to use our professionals in the implementation of your plan if you have a trusted advisor in a specific seat but in the case you have outgrown or do not have one we can help you hire the right advisor for the specific job
  • Give all parties access to the virtual data rooms and platform to smooth communication and collaboration.

Step 3: Interviews

  • Multidisciplinary team meeting(s) and interview(s) reviewing virtual data room.
  • Multidisciplinary team meeting(s) and interview(s) with necessary stakeholders such as owners, family members, employees, potential buyers, etc.

Step 4: Recommendations

  • Throughout the process, together we’ll, continually refine the data, goals and objectives in line with where you want to get.
  • We’ll draft the preliminary recommendations of your growth and exit plan and present them to you. Obtain feedback from you and stakeholders. You may like some, none or all of them.
  • Revise and analyze feedback.
  • Draft and present final growth and exit plan recommendations.

Step 5: Implementation

  • You select the final recommendations from the growth and exit plan to implement.
  • Among the many recommendations you’ll have the ability to delegate each recommendation to the correct profession in your network, self implement, or ask us and our network for help.
  • Continue using The Value Advantage™ platform to manage your company, advisors, and real time progress.

Step 6: Ongoing Execution

  • Depending on your growth objectives and exit timing you will continue to execute on the plan until your final goals are hit or you successfully exit.
  • You can choose to keep Solidity on retainer to monitor your plan, use The Value Advantage™ platform, perform quarterly calls or any other projects that align with your growth and exit plan.
  • Finally – engineer, execute and close transaction(s). Post-closing transition services and planning needs to take place.

Leverage Our Growth and Exit Planning Process to Take Control Over Your Exit and Maximize Your Life’s Work

Step 1: Build a Foundation

  • Kick-off call with team
  • Conduct complete legal / business discovery / due diligence / audit
  • Setup virtual data room(s), account and profiles in The Value Advantage™ platform

Step 2: Develop and Meet Your Team

  • We leverage our multidisciplinary team during the planning process to collaborate with various backgrounds and disciplines. We eliminate conflict, encourage brainstorming and therefore optimize your plan and future possibilities.
  • You do not have to use our professionals in the implementation of your plan if you have a trusted advisor in a specific seat but in the case you have outgrown or do not have one we can help you hire the right advisor for the specific job
  • Give all parties access to the virtual data rooms and platform to smooth communication and collaboration.

Step 3: Interviews

  • Multidisciplinary team meeting(s) and interview(s) reviewing virtual data room.
  • Multidisciplinary team meeting(s) and interview(s) with necessary stakeholders such as owners, family members, employees, potential buyers, etc.

Step 4: Recommendations

  • Throughout the process, together we’ll, continually refine the data, goals and objectives in line with where you want to get.
  • We’ll draft the preliminary recommendations of your growth and exit plan and present them to you. Obtain feedback from you and stakeholders. You may like some, none or all of them.
  • Revise and analyze feedback.
  • Draft and present final growth and exit plan recommendations.

Step 5: Implementation

  • You select the final recommendations from the growth and exit plan to implement.
  • Among the many recommendations you’ll have the ability to delegate each recommendation to the correct profession in your network, self implement, or ask us and our network for help.
  • Continue using The Value Advantage™ platform to manage your company, advisors, and real time progress.

Step 6: Ongoing Execution

  • Depending on your growth objectives and exit timing you will continue to execute on the plan until your final goals are hit or you successfully exit.
  • You can choose to keep Solidity on retainer to monitor your plan, use The Value Advantage™ platform, perform quarterly calls or any other projects that align with your growth and exit plan.
  • Finally – engineer, execute and close transaction(s). Post-closing transition services and planning needs to take place.

Areas Covered In a Growth and Exit Plan

Understanding your goals, vision, timing, and objectives.

Knowing who you are, what you want from your business and why is the first place we start. In order to build any plan, understanding where you want to get and what is important to you is crucial to success.

That’s why we created our Goal & Vision Building exercise. It helps to clarify what’s most important to you so you can prioritize things other than your next revenue target 😉

Questions to ask:

  1. What does exiting mean to you? Is it a specific timeframe, reduced mental or physical energy, or complete financial cut off from the business?
  2. What amount of money do you need or want from the business?
  3. Who would you like to sell or transfer your company to? Are there any desired or “absolutely not” people you can think of?
Gather facts and feed them into the system and tools.

After getting a handle on what your vision and goals are, then it is time to get all the information into The Value Advantage™ platform.  We use the best technology so you can see your plan and progress in real time.

Your ideal vision for your company and eventual exit [whatever that means to you] will be the base scenerio.  Then as we continue the process you can assess how each decision you make will impact your future goals.

The ulimate goal is you will be able to make intelligent decisions base on information and not based on gut instinct alone!

example: Do you want to know how selling half your company in 3 years is different than selling all of it today?  Let’s run that scenerio in real time to see the financial impact!

Financials

Business valuation and financial needs analysis, current and future. Determine the value gap or surplus.

In order to find out how to continue your level of income and maintain your lifestyle [with or without the business] we need to know how much your biggest asset is worth!

Check out the video below on how we run scenerios with our clients to determine when they need to sell and for how much!

Check out our Online Video Case Study on how to look at your financials and calculate your net proceeds!

Build your financial score card:

  1. Run a normalized EBITDA, or at a minimum pre-tax earnings, for a benchmark going forward
  2. Perform a business valuation, included in our services, using best in class valuation tools and technology.
  3. Analyze what your income needs are:
    1. salary + distributions + grossed up perks
    2. back into a liquid portfolio that you would need to maintain that lifestyle without the business
  4. Determine if there is a value GAP, or surplus, between what your business is worth and what it would take to maintain your lifestyle.
  5. Begin making the plan to fill the gap OR what do to with the addional future added value and capital.
Align the business, and personal, cash flow forecasts and budgets with timing and needs.

Whether there is a value GAP, or a surplus, you need to have an intelligent plan on what to do with the additional cash flow. Will it go to adding to your personal weath or to key value drivers in the business, or BOTH?

The Value Advantage graph

Check out our Online Video Case Study on how to look at your financials and calculate your net proceeds!

Questions to ask:

  • Does the future cash flow forecast accomplish your goals for business value, timing and wealth? 
  • Do you need to make adjustments in timing or projected growth and value?

example: if you have an EBITDA of $500,000 and want to transition or sell in 5 years and need an EBITDA or $1 million… is it possible to get there or are adjustments needed?

Note: there are ways to strategically increase the value of your business and gradually transition internally based on increased cash flow and performance. It doesn’t have to be a one time event!

Identify key areas to increase the value of your company.

Building a valuable business is crucial to your plan regardless of what outcome you want. A valuable business is one that can be transferred with little risk to someone else.

  • The less risk there is to a potential buyer that clients, or revenue, will leave after they purchase your company, the more valuable it is.
  • The faster a potential buyer can scale your business with their resources, the more valuable it is.

There are more ways to calculate the value of a business than just a multiple… 

Calculate your Value Builder Score™

John Warrillow through his Value Builder System™ identified 8 Key Drivers of business value [see next step to for list of 8]. He created a scoring system from a survey that over 25,000+ business owners haven taken. Companies with a score of 80+ out of 100 got 71% more for their business than the average score of 58.

Click HERE to take the The Value Builder Survey™

Determine the top Value Drivers to focus on.

You get access The Value Builder System™ which is one of the online tools we use as part of The Value Advantage™. There are 12 modules that go in depth with exercises, training and reporting on each of the 8 Key Drivers listed below.

All the value drivers are important but we found that by choosing 3 drivers to focus on while we working the rest of the plan works the best! The lowest hanging fruit with the highest return in value is usually the best place to start 😉

John Warrillow The Value Builder System™ 8 key drivers

To see the 8 Key Driver Videos click HERE 

Exit Options

Begin building the plan to transition the business to the ideal internal or external buyer.

We begin with an overview of the HUGE spectrum of exit options that are available. Most owners think they have 2 main options…

  1. Go to market with a business broker/investement banker and sell their company to a 3rd party of some sorts
  2. Endure a long, emotionally painful, typically not as profitable, transition to a key employee or family member.

We’re here to show you all the ways you can slice and dice your eventual exit so it hits all your goals! Below is a basic picture with the wide variety of ways you can mix and match your exit.

The Value Advantage™ exit options

Develop the backup exit plan to the primary plan.

Having a goal to work toward is huge step… however having a backup plan for the unknown can be just as important. It could also save you MILLIONS!

For example: if you determined that selling your business to an insider accomplishes your financial and value based goals, and an offer comes out of the blue for a price you can’t refuse, what do you do?

Things to consider:

  • If you are selling to insiders, have a plan for a potential 3rd party sale
  • If you sold to a 3rd party vs an insider how would your corporate structure, tax strategy, and estate plan differ? Plan for both!
  • If you industry or financial situation changes, what’s the next plan that needs to be put into action?
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Business Continuity

Contingency plans for an unforeseen circumstance with the controlling group.

Things come up… life happens!

Do you want to be in business with your partners spouse or kids!?

Death, disability, retirement, termination and conflict planning is important to address for all major stakeholders that can impact the current and future viablity of the business.

Many owners have some or all of these items in place, however there are almost always huge opportunities to optimize.

Items to review and fine tune according to plan:

  • Buy/sell (shareholder) agreements
  • Business insurance and continuity plan
    • Current risks
    • Future risks

Fom our experience most insurance is sold in silos accourding to the agents commission structure. This is not inherintly bad, however it generally leaves large holes and unforeseen exposure in the bigger picture.

Note: We don’t collect any commissions from anyone which allows us a very non-biased technical opinion on how to manage this part of the plan. We work with your advisors or a relationship we have if you need one.

Review and develop key employee compensation, bonus, and retention plans.

Giving your key employee(s) cash or equity out of fear of lossing them, or blowing up a deal, is usually too generous and lacking alignment with your goals…  AND 99% of the time will come back to bit you in the a$$.

The goal is to align your present and future motivations with the key employee and your company.

Things to consider:

  • Long term motivation
  • Potential for entitlement
  • Risk of sabataging a deal or fiancially holding you hostage
  • Company cash flow
  • Employee departure risk
  • Current and future operations vs. potential aquisition scenerios

Ways to accomplish a key employee incentive plan:

  • Stock bonus plan
  • Phantom stock plan
  • Stock appreciation rights
  • Non-qualified deferred comp. plan
  • Cash bonus plan

MAKE SURE ALL MOTIVATIONS ARE IN LINE!

Tax & Estate Planning

Review and develop tax mitigation, estate planning, and corporate structure strategy

When referring to a tax and estate strategy you should be concerned with one question:

“How can I harvest the most amount of wealth from my business and paying the least amount of taxes by transfering my business to the right person on my terms WHILE providing me with the resources I want for life and my family with the right plan after I pass.”

YOUR tax strategy will vary depending on who you are planning on selling the business to.

Taxes, corporate structure, and estate planning are extremely intertwined with one another… to look at them seperately and out of context from your larger vision can cost you millions of dollars, major emotional trama and HUGE regret.

2 types of plans to consider for tax strategies:

  • Tax and estate plan for internal sale to insiders and wealth transfer to next generation
  • Tax and esate plan for 3rd party sale and then transfer or wealth to next generation

Example: If your corportate structure is setup in a certain way you could sell your business to a trust that is out of state and eventually sell it to a 3rd party and potentially mitigate all state income taxes!

This can potentially take a couple years to put in place to pass the IRS guidelines and you DO NOT want to do this in some cases depending on who you sell to!

Establishing your financial needs, timeing and priorities for an internal transfer or 3rd party sale will dictate how the tax and estate plan are arcitected.

Correctly executed and a great plan could save you 75% in taxes. Failure in execution could leave you broke, in jail, or really, really, upset with your advisors.

Build out both 3rd party sale and family transfer tax strategies

As mentioned throughout our process having a plan to sell to a 3rd party and insiders simutaniously is the smart thing to do. You can never predict the future and certain strategies become obsolete or even illegal once an offer is on the table!

3rd party sale considerations:

Family sale / transfer considerations:

Who it’s for

Entrepreneurs Looking to Grow Love Having a Growth & Exit Plan

Right now, your likely juggling the pressure of payroll, banking, sales, and employee drama, alone, on a island. You interact with employees, professionals and family everyday but still feel “alone” because no one gets what you are going through.

Sound familiar? Fortunately there is a solution: It’s called a Growth & Exit Plan. We’ll make sure that as you grow your business you do it with the end in mind (regardless if that end is 20+ years out) and put you with an advisor that is on the same page, speaking the same language and aligned with the same goals; build a valuable company that can thrive without you and have the options to sell when you want, to who you want, for how much you want.

Owners Looking to Transition Love a Growth & Exit Plan

As a business owner, finding the right successor, or buyer, within your timeframe at the price you want is the ultimate goal. Especially if you can control the process and the future of your legacy.

This is where a Growth & Exit Plan becomes your best friend. Not only can we give you the resources to identify your ideal exit, we can also help you weigh the decisions to help you avoid any surprise mistakes common in a transition.

Entrepreneurs Looking to Grow Love Having a Growth & Exit Plan

Is your goal to maximize your net proceeds and sale price? Do you know what buyer and sale structure would accomplish that? Have you ever been victim of saying “yes” to everything that comes across your plate without a clear goal on how all your hard work will pay off? It sucks doesn’t it? Not only are you going to burnout, you also risk misaligning yourself from the owner and the business.

And that’s why having a Growth & Exit Plan is the perfect place to start. By surrounding yourself with people that have been where you are, or in the same place, you’ll be able to increase your experience and build relationships that are crucial to your success.

Who it’s for

Entrepreneurs Looking to Grow

There’s nothing worse that managing the weight of running a business alone and without a plan that has the end in mind. Why grow and for what reason? So let us fix that for you.

Owners Looking to do an Internal Transition

Give yourself the information, tools and advice you need to maximize your internal transfer dollars and control. Make sure you transition “your baby” to the right person, at the right time, for the right price.

Owners Looking to Sell to a 3rd Party

Whether you know a potential buyer or not you need to know how to maximize your dollar and happiness during the exit. Give yourself the right environment to maximize your opportunity and increase your chances of success.

What Our Customers Say

"We've got more information and a better plan with people we trust in a Peer Group... because of The Value Advantage™"

Jim Fritz, Chief Executive Officer of The Wedding Shoppe

"We've surrounded ourselves with the best and brightest people and it's changed our business!"

Loren Horsager, President & Founder of Mobile Composer

What Makes Us Different

We Actually Do This Stuff

Our Growth and Exit Planning process and platform is unique because they’re developed in-house by entrepreneurs that have sold companies before!

We’re not just consultants or “Advisors”. We’re in the trenches DOERS who despise theory and believe the best way to learn something is to roll up your sleeves and get your hands a little dirty. This unique perspective is why our individual engagements are just flat out better than any other advisors in the market. That may some like bragging… but we believe that “its not bragging if it’s the truth.” 😉

Real Time Updates

The business and industry landscape changes constantly, and what worked yesterday may not work tomorrow. That’s why it’s critical that you surround yourself with the people and technology that move at the speed of innovation.

Since every Growth and Exit Planning team member is experienced, connected to other specialists (and continuous learners themselves) we can keep up with the market trends and technical details… so you can stay ahead of your competition.

Our Focus is Building Valuable Business Owners

It’s common for consultants to walk in with a blake sheet of paper to talk about “whats wrong” in your business. And for ordinary businesses, ordinary consultants are sufficient.

But building a valuable business with lots of exit options is different.

When it comes to the best business value building and exit planning advice, you deserve the best. Solidity’s only goal is value building and exit planning, and that’s why our advice is flat out better than the competition.

Leverage the Best Advice and Technology Together

What really sets our Growth and Exit Planning apart (and what makes it unlike any other advice in the world) is that we bring the best multidisciplinary team together using The Value Advantage™ software platform.

You’ll be able to make decisions based in accurate numbers, and even more importantly, you’ll be able to see the big picture of how those decisions impact your future goals. And thanks to our simple, flat rate pricing, you can get the best advice without conflicted biases.

The result? A united, integrated plan aligned with your goals, with people speaking the same language and working together so you can create the legacy you want!

A Process, Team and Technology Built by Entrepreneurs Who Have Exited a Business

Committing to a plan is one thing, but if you want to create the legacy you envision with people you trust and “get you”, there is nothing better.

And that’s why we truly get to know our customers like friends and family. We need to understand what’s truly important to you and what you want out of life. When you make the hard decisions you’ll know the financial pros and cons, but you’ll also be able to bounce it off people that understand money can come secondary.

What Makes Us Different

We Actually Do This Stuff

Our Growth and Exit Planning process and platform is unique because they’re developed in-house by entrepreneurs that have sold companies before!

We’re not just consultants or “Advisors”. We’re in the trenches DOERS who despise theory and believe the best way to learn something is to roll up your sleeves and get your hands a little dirty. This unique perspective is why our individual engagements are just flat out better than any other advisors in the market. That may some like bragging… but we believe that “its not bragging if it’s the truth.” 😉

Real Time Updates

The business and industry landscape changes constantly, and what worked yesterday may not work tomorrow. That’s why it’s critical that you surround yourself with the people and technology that move at the speed of innovation.

Since every Growth and Exit Planning team member is experienced, connected to other specialists (and continuous learners themselves) we can keep up with the market trends and technical details… so you can stay ahead of your competition.

Our Focus is Building Valuable Business Owners

It’s common for consultants to walk in with a blake sheet of paper to talk about “whats wrong” in your business. And for ordinary businesses, ordinary consultants are sufficient.

But building a valuable business with lots of exit options is different.

When it comes to the best business value building and exit planning advice, you deserve the best. Solidity’s only goal is value building and exit planning, and that’s why our advice is flat out better than the competition.

Leverage the Best Advice and Technology Together

What really sets our Growth and Exit Planning apart (and what makes it unlike any other advice in the world) is that we bring the best multidisciplinary team together using The Value Advantage™ software platform.

You’ll be able to make decisions based in accurate numbers, and even more importantly, you’ll be able to see the big picture of how those decisions impact your future goals. And thanks to our simple, flat rate pricing, you can get the best advice without conflicted biases.

The result? A united, integrated plan aligned with your goals, with people speaking the same language and working together so you can create the legacy you want!

A Process, Team and Technology Built by Entrepreneurs Who Have Exited a Business

Committing to a plan is one thing, but if you want to create the legacy you envision with people you trust and “get you”, there is nothing better.

And that’s why we truly get to know our customers like friends and family. We need to understand what’s truly important to you and what you want out of life. When  you make the hard decisions you’ll know the financial pros and cons, but you’ll also be able to bounce it off people that understand money can come secondary.

A Message From Our President

Ryan Tansom
President, Solidity Financial

Be honest…how would you describe your life as an entrepreneur?

Stressful? Out-of-balance? Lonely? Non-existent? Under appreciated?

Well if you said anything other than, “the best life can be,” you’ve come to the right place. Assuming your still working like a dog trying to hit payroll and plan your next move… and have few, if any, places to turn for advice.

You’re busy. And try to plan for the future. But do you really get the clarity you need?

Continue reading...

Do you want to build a valuable business that can thrive without you so you have control and options over your exit?

This is the exact question we wanted to answer YES to before we sold our family business, Imaging Path… however, that was not the case.

That is why we created The Value Advantage™. You’ll have all the information to build a valuable business that gives you tons of options when you decide to exit.

And best of all.. you’ll have people that have the experience and stories to give you advice along the way!

So if you like the idea of transforming your ordinary (or non-existent) plan into a strategic value building plan with exit options, then call us today! 

Build a Better Business with The Value Advantage™

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