A few weeks ago, my friend Lori and I sat down to tackle an unusual but highly relatable case study: Santa Claus’s Exit Strategy
While we took plenty of creative license and had a lot of fun imagining what Santa’s exit might look like, the scenario was packed with challenges we see every day when working with organizations.
Consider these highlights from Santa’s situation:
- Multiple companies sharing employees and resources.
- Processes without SOPs. “We’ve been doing it this way FOREVER. Why would we write it down?”
- Personal expenses on the books. (Let’s just say Mrs. Claus isn’t thrilled—happy wife, happy life!)
- Disgruntled employees. The reindeer are not on board with the next generation.
- Key staff turnover. That Cindy Lou Who is proving to be quite the headhunter.
And the list goes on.
We put this case study together to present at the final BEAN YEG (Edmonton Business Exit Advisors Network) meeting of the year. As we walked through the intricacies of Santa’s exit plan, it was a great reminder of how critical it is for business owners to have the right team of advisors in their corner.
Team Approach is the ONLY way to Exit Success
At BEAN YEG, we had insights from a variety of professionals, all essential to a successful exit strategy:
- Financial and legal experts offering structure and compliance advice.
- Family Enterprise Advisors addressing family dynamics and long-term goals.
- Financial planners and valuation experts ensuring the numbers align with future plans.
- HR professionals and consultants who understand the people side of business transitions.
- An Executive/Life/Transitions Coach focused on the personal readiness of the owner.
- A business broker ready to navigate the market and maximize value.
It’s no different for any business owner—there isn’t a single advisor who can cover all the bases for a successful exit. Each specialist plays a role in addressing the three legs of the exit-planning stool:
- Business readiness.
- Owner readiness.
- Financial readiness.
Of these, owner readiness is often overlooked as lawyers, accountants, and brokers focus on the numbers game. A year after the sale, 75% of business owners regret selling their business. This proves that ensuring the owner is mentally and emotionally prepared for the transition is just as critical as getting the business and finances in order.
Santa’s Takeaway: Start Early
For Santa, this is going to be a multi-century process. His story illustrates an important point:
It’s never too early to start planning your exit.
If you’d like to follow along with Santa’s case:
And if an exit is on your horizon in the next 5–10 years, let’s talk.
Wishing you a Merry Christmas and a prosperous new year!
