Linda Jensen, Principal and Owner of Heart Financial Group, Interviewed on the Influential Entrepreneurs Podcast Discussing Exit Planning

March 26, 2024 at 08:58 AM EDT

Linda Jensen discusses the importance of exit planning for business owners.

Listen to the interview on the Business Innovators Radio Network: https://businessinnovatorsradio.com/interview-with-linda-jensen-principal-and-owner-of-heart-financial-group-discussing-exit-planning/

Exit planning is a critical aspect for business owners seeking to enhance the profitability and valuation of their business. Often, business owners overlook creating an exit plan due to their focus on day-to-day operations. However, a well-thought-out exit plan can significantly impact the financial success of a business.

Linda Jensen emphasizes that engaging in exit planning allows business owners to safeguard revenue and de-risk their business. This initial step in the exit planning process lays the groundwork for increasing profitability and valuation. By identifying and mitigating risks such as supply chain vulnerabilities or customer concentration issues, business owners can enhance the overall value of their business.

Moreover, accurately valuing the business is crucial. Many business owners tend to overestimate the value of their business, leading to challenges during the selling process. Working with professionals to accurately value the business and compare it to industry standards enables owners to gain a realistic understanding of their business’s worth and take steps to increase its value.

Linda explained: “There are two basic categories. One is inside, which would be multigenerational, where you want to be able to sell to your children. Or there could be a management buyout, sell to existing partners, or even sell it to your employees. The other type would be outside, where you’re going to sell to a third party, maybe private equity. And so for intergenerational, lots of times people, about 50% of business owners want to do that. But in reality, only about 30% can have that transition go on to their children or their grandkids.”

The episode also delves into the various exit planning options available to business owners, such as selling to family members, employees, or third parties like private equity firms. Each option comes with its own set of pros and cons, requiring business owners to carefully consider which route aligns best with their goals and objectives.

In conclusion, Linda underscores the significance of exit planning for business owners. By crafting a well-thought-out exit plan, owners can not only increase the profitability and valuation of their business but also ensure a smooth transition when the time comes to exit the business. Planning and taking proactive steps to enhance the value of the business can lead to a more successful and lucrative exit for business owners.

Video Link: https://www.youtube.com/embed/D7fruh0FnWc

About Linda Jensen

Linda has been self-employed for her entire life. A successful financial advisor since 1994, she has enjoyed all aspects of entrepreneurship, especially problem-solving, sizing up dilemmas, and working through complexities with creative solutions. She is a lifelong learner. In addition, she has a passion for establishing a good rapport with business owners and clients helping them access a wide range of resources. “Business owners are in a lonely place,” says Linda. “I want to develop a relationship with the business owner, offer counseling and serve as a referral service.” Linda began her career in 1994 with Prudential Preferred Financial Services; for three years Linda was an agency leader in Tacoma, Washington.

Since starting her firm in 1997, Linda has enjoyed working with individuals and business owners helping them achieve their financial dreams and goals. She is an expert in all aspects of retirement planning.

Linda has lectured widely on financial topics to both the general public and business professionals. She is passionate about helping business owners leverage corporate cash to create benefits for the owner(s), key employee(s) and to identify estate-planning solutions.

Linda calls the Pacific Northwest home. She married her college sweetheart. She and her husband Brad have two children and five grandchildren. Linda loves learning, reading, hiking, sewing, and cooking.

Learn More: https://www.heartfinancialgroup.com/ | https://www.LowerYourTaxesToday.com

Investment advisory services are offered through WealthWatch Advisors, an SEC registered investment advisor. Wealth Watch Advisors and Heart Financial Group are independent of one another. Please note that the registration with the SEC does not guarantee the success of investment advice.

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Linda Jensen, Principal and Owner of Heart Financial Group, Interviewed on the Influential Entrepreneurs Podcast Discussing Exit Planning

Investment advisory services are offered through WealthWatch Advisors, an SEC registered investment advisor. Wealth Watch Advisors and Heart Financial Group are independent of one another. Please note that the registration with the SEC does not guarantee the success of investment advice.

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