Quadrant 2

The result of the GROW or GO survey designates that the owner and company are in Quadrant 2, indicating that the company has done many of the things that make a company attractive to potential buyers, but that the owner is not yet full ready and committed to exiting. This could indicate any of the following:

  • The owner does not intend to exit in the short-term.
  • The owner does plan on exiting over the next several years, but is not fully ready to exit the company.

Questions and Answers on Quadrant 2

How To Determine If The Owner is Ready and Committed To Exiting?

As the result of being in Quadrant 2, the owner has indicated by their answers that they are not ready to exit. This could be due to a variety of factors.

The owner should develop their on End Game Plan, either on their own or with the help of an advisors. One website has been developed to help owners develop their End Game Plan.

The Importance of Estate and Financial Plan

Once an owner begins the process of considering exiting from the business, it is important that the owner develops both a personal financial plan and an estate plan.

Benefits of Estate Planning

Estate Planning is about control, tax efficiency, protection, and peace of mind — especially for business owners and families with significant assets.

With an estate plan you can:

  • Decide exactly who received what
  • Protect assets for future distribution to beneficiaries
  • Minimize any estate taxes that might be due
  • Create conditional distributions

What Issues Might Preventing The Owner From Being Ready to Exit?

  • Strong owner affiliation with company and employees.
  • The sale of the business would not generate enough net cash flow to fund the planned post-exit lifestyle.
  • No real vision on what the owner would do after exiting the business.
  • Lack of push or pull factors that would drive the owner to leave.

Benefits of Personal Financial Planning

Personal financial planning will help the owner determine how much net cash flow might be generated by the sale of the business and whether or not this amount is adequate to fund their planned lifestyle..

Viewing The Company As An Asset That Needs To Be Grown

Once an owner has built the business, it is easy for the owner to view their role as running the business.

However in exit planning it is important to view the company as an assets and begin to make decisions that will increase the value of the business.