Our good friend Arlin Sorensen, “The Peer Guy” and leader of Heartland Technology Solutions and the HTG Peer Groups that we and so many others belong to and receive so much value from, has some sage advice for all of us.
I speak quite a bit about “Exit Strategy” in our first book, “The Guide to a Successful Managed Services Practice”, and how the accumulation of long-term, annuity-based Managed Services Agreements increase company valuation, and illustrate a few examples on how to reach your target valuation. In Arlin’s latest post, he details 6 items we all need to address before we execute our Exit Strategies, and I agree with each and every one of them. Read Arlin’s entire article here.
These are items that must be in place in the event of our or our business partners’ deaths, disability, divorce, retirement or other scenario that leaves someone else to deal with the business affairs. Arlin’s list covers the following:
· A Will
· A Living Will and Power of Medical Attorney
· Buy/Sell Agreements
· Exit Plan
· Execution Team
Arlin goes on to say “There are many other things you may need to consider – find an expert to help you – probably a CPA, lawyer, insurance broker and banker at a minimum. Build a team and sit them down together to help you identify the things you need to do. Make plans, document them, and share them with the people you are asking to execute on your behalf. Do it now – before you need it. It is way too late after something happens. Hopefully you will never need it but if you do, it will be the best time you have ever spent!
Again, sage advice from a true IT Business Mentor. Thanks, Arlin – for all you do.