As the anticipation builds for the AFL and NRL football finals, parallels between football and the business world offer valuable insights for business owners considering their exit strategies.
Using American football as an analogy, mortgage expert Ash Playsted said the role of a quarterback mirrors that of a strategic leader in business exit planning – a pivotal position that guides a team to success through precision, coordination, and leadership.
“In the realm of exit planning, quarterbacking in business is just as crucial for a successful transition,” said Playsted (pictured above), general manager at Recludo, a company that invests in mortgage broking businesses and helps them plan for exit.
Exit planning is a multifaceted process where business owners prepare for the eventual transition of their company to new ownership.
Beyond securing a high sale price, Playsted said effective exit planning ensures the ongoing success of the business under new leadership, aligns with the owner’s financial goals, and prepares stakeholders for the change.
This involves a comprehensive valuation of the business, including financial health, market position, and growth potential.
In this realm of exit planning, the “quarterback” is the strategic leader who orchestrates the entire transition process.
Typically a Certified Exit Planning Advisor (CEPA), this individual coordinates the efforts of various advisors—such as CPAs, lawyers, and financial experts—ensuring that all members are aligned with the business owner’s goals.
Sports have been a rich source of metaphors and terms in the business world, reflecting concepts of teamwork, competition, strategy, and leadership.
Given that agile project managers already have scrum masters, Playsted sees no reason why “quarterbacks” can’t become part of the playbook for business owners looking to exit.
According to Playsted, here is an exit planning quarterback’s key responsibilities:
Coordinating the team: Acting as a project manager, the quarterback facilitates communication and collaboration among the diverse team of advisors.
Aligning goals: The quarterback ensures that every member of the team is focused on the common objectives, preventing misalignment and potential conflicts.
Managing deliverables: By overseeing deadlines and deliverables, the quarterback maintains the momentum of the exit plan, ensuring tasks are completed on time and to a high standard.
Overseeing 90-day sprints: Breaking down the exit plan into manageable 90-day intervals allows for steady progress and quick adjustments, keeping the team focused and motivated.
Navigating an exit plan can be complex and emotional but having a quarterback on your transition team can make all the difference.
They not only provide expert coordination and strategic leadership but also manage the emotional aspects for a smoother process and successful outcome.
According to Playsted, here are some of the other benefits:
The quarterback provides a single point of accountability, keeping the team on track and making sure all aspects of the plan are synchronised.
As a strategic leader, the quarterback offers valuable insights and guidance, steering the team through complex decisions and challenges.
With a quarterback at the helm, the exit planning process becomes more efficient and effective, reducing the risk of delays and costly mistakes.
By coordinating efforts and leveraging expert guidance, the quarterback helps to maximise the value of the business for a successful transition.
Like every American football game, the final whistle soon comes for every business.
Playsted’s advice is clear: start planning early and get the right quarterback on your team.
“The earlier you bring a quarterback into the process, the better positioned you are to navigate the complexities of exit planning,” he emphasised. “Don’t wait until the fourth quarter to make your move.”
With football finals just around the corner, it’s the perfect time to reflect on your business strategy.
Just as every great team needs a skilled quarterback to guide them to victory, every business owner needs a strategic leader to navigate the complexities of exit planning.
