Planning for Life After Business: Achieving Your Freedom Point
Spring marks the peak selling season— and a time to dream about the future. For many horticulture business owners, 80–90% of their net worth is tied up in their business. Yet, according to the 2024 State of Succession and Exit Planning in the Horticulture Industry survey, 54% of owners lack a formal business valuation. To turn your retirement dreams into reality, you need to determine your Freedom Point— the moment when selling your business provides enough resources to sustain your ideal lifestyle. Understanding Your Freedom Point Your Freedom Point is unique to you. It represents the financial threshold at which selling your business generates enough cash to maintain your desired lifestyle. To determine your Freedom Point, consider these three key factors: Current Business Value – What is your business worth today? Financial Needs – How much do you need for a comfortable retirement? Value Gap – The difference between your business’s worth and what’s needed to fund your future. Start by adding up your savings, including investments and retirement funds, and estimate your expected proceeds from selling your business. The net proceeds from the sale will depend on EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization). The EBITDA multiple determines the price a prospective buyer may offer. Next, calculate your anticipated post-retirement expenses, including everyday costs and bucket-list goals, up to age 95 (gulp). Unlike your grandparents, if you live to 75, there’s a good chance you’ll reach 95. Lastly, you will need to pay 5–15% in transaction costs and advisor fees, and expect to pay Uncle Sam his share using your current tax rate. What remains after subtracting your expenses, retiring any remaining debt, transaction costs, and taxes is your Freedom Point! Sounds simple? It’s not. To quickly estimate your Freedom Point, use the complimentary online Freedom Point Calculator: CLICK HERE! It takes less than 10 minutes and provides a full, confidential report. The Importance of Early Planning Many business owners delay exit planning, but starting early provides flexibility and control. Preparing years in advance allows you to increase profitability, strengthen management, and improve operational efficiency. A rushed sale often leads to lower valuations, fewer buyer options, and missed financial opportunities. Think of your exit strategy as an evolving process rather than a last-minute decision. Strategies to Maximize Business Value The pool of potential buyers in the horticulture industry is limited. How can you make your business stand out? Achieving your Freedom Point requires preparing your business for a profitable sale. Focus on these 10 essential steps: Get a Business Valuation – Obtain an independent valuation to understand your business’s current worth. Be prepared to share at least three years of financials and tax returns. Increase Profitability – Optimize sales and cost efficiencies to enhance earnings. A clear sales growth strategy sets your business apart from others on the market. Organize Financial Records – Ensure key financial statements and tax returns are accurate, up to date, and easy to explain. Separate non-recurring expenses, such as bonuses or personal costs, to present true profitability. Improve Cash Flow – Minimize large expenses unless they are mission-critical. Buyers don’t want to make significant investments on day one of ownership. Strengthen Your Management Team – Reduce owner centricity by developing strong internal leadership. A management team capable of running the business without you makes for a smoother transition. Diversify Revenue Streams – Mitigate risk by expanding your customer base and product offerings to reduce dependency on a few large customers or products. Document Standard Operating Procedures – Well-documented processes decrease owner dependency, increase business value, and simplify the transition to a new owner. Enhance Customer Loyalty – Loyal customers are valuable assets to potential buyers. Know your Net Promoter Score (NPS)—if it’s below 9.0, fix it. Strong customer relationships add significant value. Develop a Clear Exit Strategy – Exit planning is a team effort. Involve professional advisors, your management, employees, and family to plan your transition well in advance. Address Legal and Compliance Issues – Anticipate issues surfacing during due diligence. Resolve outstanding contracts, licenses, and legal matters to avoid roadblocks during a sale. When done properly and in a timely manner, these steps help bridge the gap between your business’s current value and the amount needed to fund your future lifestyle, ensuring you achieve your Freedom Point. Your business is your legacy. Plan ahead, maximize its value, and secure the future you’ve worked so hard to build. Are You Ready? Take Our Complimentary Assessments Let’s find out— They take about 15 minutes or less, but are incredibly insightful as you begin your succession and exit planning journey. Take the assessments today, and let’s have a confidential discussion about the future. Personal Readiness PREScore™ is an 8-minute, online questionnaire that evaluates a business owner’s readiness to exit their company on a personal level. Using an exclusive algorithm, it calculates an owner’s readiness by identifying their status on four drivers of a satisfying exit. PREScore™ determines the at-risk areas and provides personalized recommendations for improvement, helping owners create a personal plan that ensures a happy exit. TAKE THE PRESCORE™ ASSESSMENT Business Readiness ExitMap® examines your and your company’s exit preparedness across four key categories: Operations, Planning, Finance, and Revenue/Profit. It consists of 22 multiple-choice questions, typically taking only 15 minutes to complete, and does not require any confidential information. A full-color, 12-page summary report will be emailed to you upon completion, and we will send you a full comprehensive report with your answers. TAKE THE EXITMAP® ASSESSMENT Financial Readiness The Freedom Score (Your Freedom Point) is a 10-minute online questionnaire that evaluates your financial readiness to fund the next phase of your life after your business. It calculates your Freedom Point, which is when the sale of your company will generate enough to fund your desired lifestyle for the rest of your life. Discover how to achieve financial independence, reduce financial risks, and live worry-free in the next chapter of your life. TAKE THE FREEDOM SCORE ASSESSMENT Let’s Talk We are
The Benefits of Improving Transparency in Hiring
Like all other aspects of business, hiring and recruitment continue to evolve faster and faster. Implementing AI, such as in the hiring process, will increase the efficiency of the process itself. There are hiring changes that are not technologically based occurring that, when properly applied, are proving to have a positive impact on attracting talent, increasing the retention of new hires, and helping companies become a preferred place for careers. At the top of this evolution in hiring is one simple yet too often ignored approach – transparency! What are the Benefits of a Transparent Recruitment Process? Companies that provide candidates with a fully transparent interview process find that over time, they attract better quality talent, increase offer acceptance rates, get new hires up to productivity faster, improve long-term retention rates, and create a stronger employer brand in their community and industry. All the benefits of transparency and authenticity are intertwined. Top talent candidates who experience transparency in the interview process from the beginning are more likely to stay engaged throughout the entire process. Due to the transparency of compensation and trust developed with candidates, offer acceptance increased. Candidates can make decisions on their compensation offer well ahead of the actual offer letter and are more likely to be flexible on their compensation expectations due to developing a trusting relationship. Once on board and with a thorough training plan, the new hires reach productivity levels faster and often exceed them. Perhaps most importantly, long-term retention rates increase, especially when coupled with a Training & Development program that was shared with them during interviews. Over time, professionals in a company’s community or within the industry hear of the positive culture, strengthening the overall employer brand. How to Implement Hiring Transparency: Transparency Begins Before the Interview Develop job descriptions that accurately reflect the role’s responsibilities and, more importantly, define metrics of success in the role. Job descriptions with a vast number of responsibilities will leave candidates wondering just what the role’s real priorities are, and they may not even bother to apply. Keep responsibilities reasonable and in a prioritized manner. Defining three specific and realistic key performance indicator (KPI) metrics is incredibly helpful to a candidate’s understanding of the role’s mission. It is a core component to increasing productivity once on board. What is a realistic KPI? An effective way to set a realistic KPI is to ask yourself: if the candidate does not achieve the KPI in one year, will I have to fire them? This may sound harsh, but it does result in companies setting KPIs that are realistic, thus influencing positive long-term retention. Help Candidates Prepare to be Their Best Communicate interview timelines, including all the interview steps. Doing so prevents candidates from leaving the process out of frustration. Change is constant, and these timelines can often get derailed due to other business priorities and scheduling conflicts, but communicating any changes immediately develops the candidate’s trust. Provide candidates with company information, an accurate overview of the culture, the names and titles of the interviewers, the type of interview questions the company asks, whether a behavioral assessment tool is utilized, and whether they will be required to present to the hiring committee. Candidates are equally responsible for a successful hiring process. However, providing details does not mean doing the candidate’s job of conducting thorough follow-up research on these details! A Conversation, Not an Inquisition Once candidate conversations begin, transparency is increased by having just that – a conversation. Included in this is realizing that no company is perfect, thus, be prepared to be authentic and share with candidates where the company is challenged and what about the role will not be a bed of roses for any candidate. Be prepared to share the onboarding process and exactly how your company invests in further professional training in their teams. Scripted questions lead to sterile conversation and scripted answers by candidates. We learn so much more about a candidate’s behaviors during a conversation rather than a scripted dialogue, as they are more at ease and able to be themselves as opposed to someone they think you want them to be. Timely & Quality Follow-up Providing quality feedback within 48 hours to a candidate in a timely manner may be the best transparency a company can practice. High-quality candidates will stay engaged with the hiring process to the offer end. Top talent that doesn’t receive thorough, timely feedback will exit the process to focus on other job opportunities. Thorough feedback includes sharing how many candidates are in process. This is a critical transparency step. Please do not tell candidates the age-old HR line that we are interviewing several other candidates and will get back to you, especially if you are not. Be transparent – is it one? Is it 5? Or are there no more candidates? Sharing quality feedback to candidates being turned down will help candidates grow professionally and leave a positive impression of your company with them for the future. This is an important way to build a positive company brand image in the community and industry. Transparency in Compensation and Benefits Gone are the days when compensation decisions were made based on salary history; 22 states plus 23 localities and counting have passed legislation banning employers from asking candidates for this information or basing hiring on the candidate’s current compensation. Hiring managers: please do not ask this question any longer. Transparency of compensation and benefits begins with their inclusion in the job description and extends through the final offer. This requires companies to invest time and resources to identify fair and accurate compensation for the role, industry, and geographic location. When setting the compensation range, be clear on what the absolute max is and what the absolute minimum is. Many great candidates are now passing over job descriptions that do not share this. Discuss the compensation range from the first interview and share benefit details. You are building trust and increasing efficiency by eliminating candidates who are over your
Who Wants to Be a Leader?
Do you have a specific career vision of becoming a company leader in the horticulture industry someday? Are you working on adding professional skill sets to enable you to take on C-level or leadership-level roles? As a company, have you invested in a definitive training and development program aimed at developing your next leaders? There is a leadership void in the horticultural industry that will critically need more leaders now and progressively into the future. The number of retirements occurring in the green industry is staggering. Did you know there are over 100 owners of green industry companies retiring soon who have no clear leader to succeed them? Per the USDA, in 2024, the average age of all agricultural producers is 58.1 years, and those over age 65 constitute 40% of the total. As an industry, we endured a period with historically low numbers of students and professionals interested in pursuing a green industry career. This period has created a talent gap in the upcoming generations, especially Gen X. The small number of professionals in this group are talented and knowledgeable. Still, it is merely a matter of supply and demand. There are not enough leaders to take over, and not enough professionals have been provided leadership training. Throughout every sector, demographic, and role in the green industry, there are fewer individuals who have a specific desire and career focus to lead a company. Compare this to the financial or software sectors, where a high volume of professionals have an early passion and focus on driving their careers to the top leadership roles in their industry. It is surprising how small the number of professionals in our industry is who are adequately prepared or willing to be a leader in their company. A dynamic affecting this is the sheer number of family-held companies where leadership has traditionally been passed to second or third generations. While this is admirable, it has also tempered the career aspirations of those not part of the family. We are now at a tipping point where there are fewer generations to pass leadership roles to, causing new and challenging exit planning options for the current leaders. A Mutual Effort Question: How do we address this predicament? Answer: From the mutual effort of individuals and companies. Encourage students and early career professionals to dream big and envision being a company leader. Leadership is not for everyone, provided all the responsibilities and challenges that come with it. However, we need more professionals who genuinely want to take on significant leadership roles with a company. Ask yourself— Have you allowed yourself to dream about this type of role? To have more leaders, we need more professionals who desire to take on a role of this level. With that desire comes the awareness that one must embrace continual learning with curiosity and accept certain sacrifices required to drive one’s career to a top leadership level. This could include putting in longer hours, the ability to relocate, and volunteering to take on new tasks or help in other departments when they are shorthanded. Professionals open to relocating for roles will indeed advance their careers faster! Academically, technical knowledge of plant science-related academia is essential. Yet infusing business knowledge is equally, if not more, important in developing future leaders. We have many excellent educational institutions producing knowledgeable students. Increasing the focus of these academic programs on developing leadership with curricula geared to business and management will provide a business base and inspire more students to do so. For example, we rightly celebrate our grower interns, but we should also celebrate those doing horticulture industry internships in sales, marketing, accounting, or human resources. Have a Plan If you want to lead a company, division, or department someday, identify within yourself the knowledge and skill sets needed to get there. Proactively take charge of gaining the knowledge and experience you lack rather than relying on others. There is just as much onus on companies to be a part of increased leadership development. This does require an investment in both money and time to be successful. Begin to balance your team’s professional development budget with your automation budget. No matter how automized, it still takes strong professionals leading from the front for a company to realize success. Many assessment tools, such as CliftonStrengths, DISC, and Myers-Briggs, are available to help a company identify individuals with future leadership behaviors. These tools will help craft a career plan to infuse them with the skill sets needed to be strong leaders. Does your company have career development planning that includes rotating top talent through different departments or functions? Companies that rotate talent through various departments produce the strongest leadership pipeline. At the very least, does the company invest in continual education or training programs focused on improving communication, soft skills, sales, marketing, financial, operations, or supply chain knowledge? Encourage and support these professionals to become active within the industry via associations, seminars, or other educational and networking events. Don’t be afraid of losing this talent to industry exposure. Several leadership programs have been developed specifically for our industry, such as Dr. Charlie Hall’s Texas A&M EAGL program and the HRI Leadership Academy. Professionals who know their company invests fully in their employee’s growth are much less likely to leave. Employees feeling stifled in their development will leap at the opportunity for growth elsewhere. Investing in the Future No company has an endless budget, but a company can apply strategies that do not require a monetary investment, such as transparency in your business and delegation of responsibilities. Openness with your employees about all facets of the business directly correlates to increasing their professional growth. For example, companies applying the “Great Game of Business” approach to transparency have more engaged, business savvy, and motivated employees concerning their career progression. Pairing high-potential employees with positive mentors will also benefit the mentors themselves by increasing organizational talent strength. Encourage delegating responsibilities and not micro-managing those who are assigned tasks. This must
BEST Receives the Certified Value Builder™ Designation
BEST invests in current and future business owner clients with the addition of a Certified Value Builder™ (CVB) Designation BEST keeps getting better – BEST Human Capital & Advisory Group proudly announces that Managing Partner Chris Cimaglio, CEPA, has earned and received the respected Certified Value Builder™ (CVB) designation from The Value Builder System™. Chris now joins an international community of trained business advisors, which incorporates the world’s leading thinkers in building value in companies for their owners and stakeholders. Chris earned his designation as a Certified Value Builder™ to support our clients’ transition goals and maximize the value of their businesses. According to The Exit Planning Institute, 76% of business owners plan to exit their business in the next ten years, and many will turn to an advisor for help. For the last four years, BEST has become very involved in the succession and exit planning process to better prepare its clients for the eventual leadership transition of their business. It was a natural extension of their Executive Search services. Many owners came to BEST looking for successors to lower their company’s dependence on themselves and assist with leadership and family succession. Other engagements arose from BEST’s HR Advisory services. BEST has now integrated The Value Builder System™ into its strategic advisory services for small and midsize business owners and CEOs. The Value Builder System™ incorporates several diagnostic tools, including the Value Builder Score, an evaluation system driven by an algorithm that evaluates a business on the eight core values acquirers consider when buying companies. The Value Builder Score provides a comprehensive assessment of the “Sellability” of your business, whether you want to sell next year or to know that you’re building a valuable asset for the future. As CEPAs and Certified Value Builders, our team is qualified to interpret your Value Builder Score. Those businesses that achieve a Value Builder Score of 90 or greater are worth double the average-performing company. In our Succession & Exit Planning Advisory at BEST, our mission is to dramatically increase your business’s value, anticipating a future sale or inevitable ownership transition. After completing a Value Builder Assessment, a confidential report measures the owner’s readiness. The report provides a process for the organization to achieve full value before selling a business. The “Sellability” of your company is not determined by the owner, your revenue, or your impressive list of customers. The buyer determines it. The Value Builder Score is based on eight factors that make a company attractive to buyers and maximize what a buyer is willing to offer. Sound like something you want to know? Then let’s get started. The single largest transaction and transition of your life deserves special attention. At BEST Human Capital and Advisory Group, we are committed to helping our business-owning clients succeed in their business and personal lives. Unfortunately, we see clients working so hard in their companies, and too many owners delaying their happiness and financial savings. Many do not have family interested in the business, which brings the question of succession planning when there is no succession? Many owners arrive at the end of their careers and find out the company is not positioned nor ready to successfully transfer to a new owner. As a result, these owners missed the opportunity to grow transferable value. On the flip side, BEST has also experienced working with owners who try to handle the business transition by themselves, which usually leaves money on the table and leads to regret.
Taking the BEST Exit and Succession Planning to a New Level for You
BEST invests in current and future business owner clients with the addition of a CEPA Designation BEST keeps getting better – BEST Human Capital & Advisory Group is proud to announce that Chris Cimaglio, a Managing Partner, recently earned the Certified Exit Planning Advisor (CEPA) designation after completing the Exit Planning Institute’s (EPI) intensive executive MBA-style program. For the last four years, BEST has become very involved in the succession and exit planning process to better prepare their clients for the eventual leadership transition of their business. It was a natural extension of their Executive Search services as many owners came to BEST looking for successors and to lower their company’s dependence on them and assist with leadership and family succession. Other engagements arose from BEST’s HR Advisory services. After training and partnering with the ExitMap® and BizEquity®, this has become a growing part of BEST’s clients’ needs. After publishing several articles on the topic and speaking at major industry events, Chris decided to complete the Certified Exit Planning Advisor (CEPA) Program through the Exit Planning Institute (EPI) to serve these growing needs better. If you aren’t familiar, the CEPA Program is the most widely accepted and endorsed exit planning program in the world, focused on cross-functional consulting and value acceleration. As a CEPA, Chris belongs to a multi-disciplinary network of high caliber, collaborative advisors in our area and across the globe. According to Chris, “This is personal for me, and I am passionate about it. I grew up in a family business and have worked with hundreds of them throughout my career. I have seen succession and exit plans work well, and others fail miserably. As a CEPA, we can now apply tested methods and approaches to change the outcome for these owners. We can do it together, collaboratively, and offer a more holistic program that helps business owners maximize the value of their business and personal financial plans to the next level and be prepared for what adventure comes next after they exit their company.” There is one indisputable fact – 100% of owners eventually will exit their business. It could be through family succession, sale, liquidation, closure, death, or any number of reasons – many of which are outside the owner’s control. According to an EPI report, over 75% of business owners who have sold their business profoundly regret it within a year after the sale. 50% of exits will be involuntary, and 40% of business owners lack even a basic business continuity plan should something happen to the owner (death, disability, divorce, or illness). BEST Human Capital and Advisory Group is committed to helping their business-owning clients succeed in their business and personal lives. They see clients working hard in their companies and too many owners delaying their own personal happiness and financial savings. Many do not have family interested in the business, which brings the question of succession planning when there is no succession? Many owners arrive at the end of their career and find out the business is not positioned nor ready to successfully transfer to a new owner. These owners missed the opportunity to grow transferable value. On the flip side, BEST has also experienced working with owners who try to handle the business transition by themselves, which usually leaves money on the table and leads to regret. We know in our hearts that it doesn’t have to be that way. The single largest transaction and transition of your life deserves special attention. Are you planning to exit and sell your business? Business Exit planning is quickly becoming a buzzword in the legal and financial communities. Your professional advisors position themselves to provide tax, risk management, wealth management, and contract preparation services. BEST Exit Plan Advisor has been trained to manage your team of tax, legal, business, and financial planners to navigate your exit strategy. Click here for our Special Section on Exit Planning for more details and a video on how to get started. If you want to see how prepared you are for transition, take the 15-minute Assessment at no charge: There is one indisputable fact – 100% of owners will eventually exit their business. The Assessment is a multiple-choice questionnaire that does not ask for confidential or financial information. Nevertheless, it is a critical first step in starting the discussion and planning process. Click here for FAQs and more information concerning our free, no-obligation exit planning assessment.
