Along with death and taxes, the owner of a privately held business also must deal with the inevitability of exiting their business – and have a comprehensive plan in place before it occurs. Author Koos Kruger has 25 years of experience as an Exit Planner and, in Business Exit Companion, does a credible job in presenting the facets of Exit Planning in a cohesive manner.
In this volume, Kruger details the need for an exit plan; the professionals needed to create a plan; the process of setting a dollar value on a business, and the improvements that make a business more attractive to potential investors. His presentation is perfect for his audience. In each chapter he summarizes the chapter’s scope, creates a bulleted list of key questions and issues, and then ends the chapter with a table for review and quick reference.
In Chapter 1, “What You Need to Know”, Kruger emphasizes that an exit plan must be created at the beginning of a business and maintained through its lifetime, noting that many factors may cause a business founder to depart. The second chapter, “Gather the Resources You Need,” does an excellent job of explaining the professionals needed to create an exit plan and presents specific questions to evaluate their competency. In subsequent chapters, Kruger outlines the mindset of potential investors. He also emphasizes long-term planning, including clearing debts and setting small but reasonable growth milestones, and “documenting the things people can’t see,” such as proprietary research and formulas, customer acquisition and product strategies. He also places a heavy emphasis of knowledge transfer and mentoring to the current management team.
Kruger’s writing is clear and crisp, and the information he presents is valuable. The author clearly knows his audience and their needs. His book is recommended reading for owners of small- to medium-sized businesses, particularly those companies heavily dependent on their founders.
Also available as an ebook.