Authors: Richard E. Jackim and Peter G. Christman

ISBN: 0977602303

The following interview was conducted by:  NORM GOLDMAN:  Editor of Bookpleasures. CLICK TO VIEW  Norm Goldman's Reviews       

To read Norm's Review of The $10 Trillion Opportunity: Designing Successful Exit Strategies for Middle Market Business Owners CLICK HERE

Today, Norm Goldman is honored to have as our guest, Richard E. Jackim, co-author of The $10 Trillion Opportunity: Designing Successful Exit Strategies for Middle Market Business Owners

Good day Richard and thanks for agreeing to participate in our interview.

Norm:

Richard, could you tell our audience something about yourself, how you became interested in exit planning and what is exit planning?

Richard: 

Studies show that over 75% of business owners regret selling their businesses a year after the sale.  Why?  Owners say it’s because they didn’t accomplish their personal goals in the process.  These owners felt they could have avoided this if they were better prepared. 

During my career as an attorney and while I was president of a national business brokerage firm I saw the terrible consequences of a business owner selling his or her business without knowing how to handle the personal, business, and financial issues that come up during the sales process.  I felt compelled to share what I’ve learned with others so that they could help business owners handle this transition successfully.

Norm:

Why is it that we read and hear about financial and estate planning, particularly in the media, however, exit planning very rarely is promoted, even by such professionals as attorneys, CPA’s, and others?

Richard: 

Exit planning is a comprehensive approach that addresses all of the personal, business, financial, legal, estate, insurance and tax issues involved in successfully exiting a privately owned business. 

Professional advisors as a rule tend to focus on each of their respective disciplines but few advisors have the knowledge or expertise to coordinate an engagement that involves all of these issues.  The goal of my book is to show professional advisors can work with others in their firms and/or assemble a team of professionals from other firms to design successful exit plans for clients.

Norm:

Why is exit planning important?

Richard: 

Selling a business is probably one the most important and most stressful tasks a business owner faces.  As a result, business owners often make decisions that are more emotional and less rational than they should be.  Exit planning introduces a rational, comprehensive way to help business owners explore their personal goals, their financial requirements, the value of their business, the ways to increase that value, the exit options available to them, the tax implication of each option, and the best way to organize and track the actual exit process.  Without this information, business owners often sell at the wrong time, sell for the wrong reasons, leave money on the table, accept unacceptable terms, pay too much in taxes, and set them selves up to be disappointed.

Norm:

Should a course on exit planning be part of the curriculum of law and CPA students, and if so, how would you design such a course?

Richard: 

Exit planning is definitely an area that professional advisors should be aware of.  However, I don’t believe it is an appropriate course for a law degree or CPA designation.  To understand the nuances of exit planning, an advisor needs to have some real world experience so I think it would be best taught as a part of the professional’s continuing education requirements.

Norm:

Your book was published by the Exit Planning Institute. What is the Exit Planning Institute?

Richard: 

The Exit Planning Institute is a company that is focused on providing business owners and their advisors with the tools and resources they need to develop exit plans.  They publish articles, white papers, and give talks and workshops on the subject of exit planning.

Norm:

Why do you think this is an important book at this time? What do you hope readers will take away from it after reading it?

Richard: 

With the aging of the baby boomer generation, demographic experts predict that 1 out of every 2 businesses will undergo a change in ownership over the next 10-15 years.  That means that over 8 million businesses worth over $10 trillion will be changing hands.  I hope this book will help a few of these business owners and their advisors manage the ownership transition process more successfully than they would in the past.

Norm:

Can you explain some of your research techniques, and how you found sources for your book?

Richard: 

My partner and I have over 50 years of investment banking/business broker experience between us.  Much of our qualitative analysis is based on real clients we’ve worked with during our careers.  The more quantitative analysis in our book was pulled together from professional publications for lawyers, accountants, financial advisors, and business consultants.  We pulled that information together so that it had meaning in the context of exit planning.

Norm:

What challenges or obstacles did you encounter while writing your book? How did you overcome these challenges? 

Richard: 

Time is always the biggest challenge.  I have two small children so I worked on this book after hours, on vacations, and on airplanes.

Norm:

How has the feedback been so far?

Richard: 

I have been gratified to receive so many letters and emails from readers who provided me with unsolicited testimonials for the first edition of my book.  Their comments, suggestions, and encouragement gave me the strength to come out with the 2^nd edition.  Book sales for the 1^st edition exceeded my expectations so I am very pleased.  I’m hoping the 2^nd edition does as well.

Norm:

Any unique ways you'll be marketing your book?

Richard: 

Unfortunately, I don’t know much about book marketing; I just enjoy writing and was fortunate that the first edition of the book sold out via word of mouth and due to a few very kind reviews.  Do you have any good ideas?

Norm:

What is next for Richard E. Jackim and is there anything else you wish to add that we have not covered?

Richard: 

Now that the 2^nd edition of “The $10 Trillion Opportunity” is finished, I’ve begun work on two new projects.  One is a rewrite of “The $10 Trillion Opportunity” intended to be a how-to book for business owners rather than their advisors.  The second is a book on “How to Buy a Great Business” intended for the entrepreneurs who will be buying the businesses that the baby boomer generation will be selling over the next 10-15 years.

Thanks once again and good luck with all of your future endeavors.