SHERPA Framework
Process To Maximize Value and Transition On Your Terms
STRATEGY
Define personal and financial goals for exiting the business
HEALTH CHECK
Understand current state of business opportunities and readiness risks
ENHANCE VALUE
Make the business more attractive to potential buyers
READINESS
Prepare for business transition and align efforts
PLANNING
Work with advisors and professionals to develop a detailed exit plan
ACTION
Stay accountable to the strategic transition process to achieve your vision
The S-H-E-R-P-A framework helps business owners navigate the complex process of transitioning or exiting their business by focusing on strategy, health assessment, value enhancement, readiness, planning, and action.
This structured approach ensures that all critical aspects are addressed, leading to a successful and smooth transition on your terms and timeline.
S – Strategy
Develop Clear Exit Strategy: Define personal and financial goals for exiting the business.
Assess personal readiness
Develop future vision
Consider desired timeline and financial outcomes
H - Health Check
Assessing the Health of the Business: Understand current state of business opportunities and readiness risks.
Evaluate business financial health, including profitability, cash flow, and debt levels
Review operational efficiency, market position, and competitive landscape
Perform SWOT analysis (Strengths, Weaknesses, Opportunities, Threats)
Minimize transferability risks of business assets and value drivers
E – Enhance Value
Enhancing Business Value: Focus on drivers to make the business more attractive to potential buyers.
Identify areas for improvement to increase business value before a sale or transition
Implement strategies to boost profitability, such as optimizing operations, expanding markets, or introducing new products/services
Strengthen management teams and operational processes to make the business more attractive to potential buyers
Improve customer satisfaction and loyalty to ensure stable revenue streams
R – Readiness
Personal and Business Readiness: Preparing for the transition and aligning efforts.
Ensure all financial records are accurate, up-to-date, and organized.
Develop detailed business documentation, including process manuals, contracts, and intellectual property records
Train and prepare key employees for the transition to ensure continuity
Address any potential issues that could arise during due diligence
P – Planning
Detailed Exit Planning: Work with advisors and professionals to develop a detailed exit plan.
Consider the tax implications of the sale or transfer of the business
Establish a timeline and key milestones for the transition process
Identify potential buyers or successors (family members, employees, external buyers)
Plan for contingencies and alternative strategies if initial plans don’t materialize
Develop a communication plan for informing employees, customers, and other stakeholders about the transition
A - Action and Accountability
Execute Your Strategic Transition Plan: Stay accountable to the process to achieve your vision.
Consider family or management succession
Engage with potential buyers or successors to reverse engineer your exit
Prepare for due diligence and proactively address issues that arise
Ensure a smooth handover to the new owner, providing support and guidance as needed during the transition period
You Can’t Do Exit Planning When You’re Exiting
We’ve taken our proven 6-step SHERPA Framework and made it into a self-paced online course supported by a peer-to-peer community and group advisory services.
Endgame Entrepreneurship™
Online Masterclass and Community
Improve the value of your business today and avoid exit regrets of tomorrow!
Learn how to maximize enterprise value and transition ownership of your business on your terms.
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