Proof 1
The Books
Nothing else can be proven until the numbers can be trusted. A buyer prices only the cash flow their accountant can verify.
Read The BooksAn Adelphoï Labs program
Everyone Exits Eventually
Every owner exits. The only questions are when, how, and who decides.
If you do not decide, something else will decide for you. This program helps you be the one who decides.
What we mean by exit
An exit is any point at which the business no longer needs the owner. That can be a sale. It can be a handoff to family or to your team. Or you can keep the business while someone else runs it.
All three need the same thing: a business that works without you, and proof that it does. A buyer pays for what you can prove, not for what you feel.
Why this matters
Most owners picture a sale years from now. But a buyer, a lender, a partner or a family member will judge the business on what it can show on the day they look. Getting ready is the same work no matter which exit you end up taking.
Seven things that start an exit
Five of them you do not choose. People call them the Five D's: death, disability, divorce, disagreement and distress. The other two are an offer you did not ask for, and your own decision. Only the last one waits for you to be ready.
Not your choice
Death
If you died tomorrow, someone else would decide what happens to the business, usually in a hurry.
Not your choice
Disability
An illness or injury can take you out of the business for months. It either runs without you or it loses value fast.
Not your choice
Divorce
A divorce can force a valuation, or a sale, on a timeline you did not choose.
Not your choice
Disagreement
A falling-out with a partner or a family member can push one of you out.
Not your choice
Distress
A bad year, a lost referral source or a cash crunch can force a sale at the worst possible time.
Someone else's choice
The unsolicited offer
Someone calls and wants to buy. If you cannot show what the business is worth, you are negotiating blind.
Your choice
Your own decision
The best case. You pick the time and the terms, because the business is ready.
The path: five stages
Each stage answers one question you would ask yourself. You move to the next stage when you pass its gate. A gate is a score plus a few conditions, not a date on the calendar.
The eight proofs
A buyer checks eight things. For each one, you either have documents that show it, or you have a story. Each card says why a buyer cares.
Proof 2
The Margin
Revenue is not value; margin is. If your job-level margin cannot be reproduced from your records, the buyer will re-cut it lower.
Read The MarginProof 3
The Team
A buyer is purchasing the people who do the work. A team that can show its goals and results earns a higher multiple.
Read The TeamProof 4
The Month
If the business needs you every day, the buyer is buying a job, and pays accordingly. A month away is the test.
Read The MonthProof 5
The Relationships
Referral relationships that live with one person leave with that person. A buyer pays for relationships the company holds.
Read The RelationshipsProof 6
The Paper
Licenses, the franchise agreement and the lease are what make the business legally transferable. Gaps here stop a closing.
Read The PaperProof 7
The Pipeline
A buyer is paying for next year's revenue, not last year's. They need to see where it will come from without you.
Read The PipelineProof 8
The Plan
Sellers who do not know what they need, or what they will do next, back out late or accept bad terms. Your plan protects the deal and you.
Read The PlanTools
Three working tools are on the way. Each one turns a part of this program into something you can fill in for your own business.
Eight Proofs Scorecard
Score each proof the way a buyer would: on what you can show, not on how it feels. The result points to where to start.
Open Eight Proofs ScorecardNet Proceeds Calculator
The price on an offer is not what you keep. Work from the offer down to the cash that reaches you after debt, fees, taxes and anything held back.
Open Net Proceeds CalculatorResale Strategy
Think through who could buy your franchise, the approvals and fees a transfer involves, and the order to do things in.
Open Resale StrategyDraft wording, final text to come
How this works with Paul Davis
Everyone Exits Eventually is built for Paul Davis Restoration franchise owners. It is independent of the franchisor unless stated otherwise.