What’s the Asking Price?
June 30, 2025
Touchstone Advisors Welcomes Rishy Mehrotra as M&A Advisor for Greater Philadelphia Region
July 24, 2025Business owners often ask: What is exit planning? And how does it differ from value planning or even value building?
Exit Planning
Exit planning is a comprehensive, strategic process that prepares a business owner to transition out of their company. Whether through a sale, internal succession, or wind-down depends on your personal, financial, and professional goals.
Value Planning
Value planning, on the other hand, focuses on identifying and enhancing the key drivers of business value over time. This process is beneficial regardless of whether or when the owner intends to exit. The objective is to build a business that is stronger, more efficient, more transferable, and ultimately more attractive to potential buyers or successors.
Once value planning establishes the blueprint, value building becomes the execution phase, implementing improvements that increase the company’s worth.
Start With a Baseline
If you’re considering an eventual exit, one of your first steps should be determining whether your current business value is sufficient to fund your retirement. This is where collaboration with a wealth manager becomes essential. With our Exit Advantage℠ program, we start with a baseline business valuation. This valuation helps guide conversations with your wealth management advisor to determine whether the net proceeds from a sale after taxes will be adequate to support your post-sale lifestyle.
If the business isn’t yet worth enough to meet your retirement needs, then targeted improvements will be necessary. Regardless of your timeline or personal financial gap, it’s almost always in your best interest to maximize business value prior to a transition.
Evaluate Key Operational Areas
There are numerous operational areas that can drive business value. As an M&A advisory firm, our role is to assess these areas and provide strategic recommendations for enhancement. For clients who enroll in our Exit Advantage℠ program, we provide assessments for up to 10 different operational areas to determine what needs improvement and to what extent. This approach helps prioritize your efforts.
The Goal
Ultimately, the business owner and advisory team must share a common objective: not just to secure the highest possible sale price today, but to work strategically over time to maximize long-term value. As an owner, the time you invest before a sale, whether that’s months or years, can have a significant impact on your financial outcome and legacy
Our goal at Touchstone is to Maximize the Value of Our Client’s Life’s Work.
For more information about Touchstone’s Exit Advantage℠ program please contact us. We are happy to have a 100% confidential conversation about your individual situation.
Steven Pappas, M&A MI
Partner, Managing Director
Touchstone Advisors
860-669-2246
spappas@touchstoneadvisors.com
