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How to Prepare for Exit

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Having an active exit strategy in place protects your business. An updated exit strategy will protect the values you have established within your company and it will help create an easy transition for both your employees and your investors. 

These exit plans give you — the owner — a plan for the future and a direction in which your company can grow. Not only will it create a supplemental income for you, but it could also reduce tax impacts on your estate and family. 

So how do you begin this process?

Start with your valuation. Every business, big or small, must know its valuation. This starts with taking inventory of your current value and where you stand amongst competitors. The right valuation can set your company up for success, but if you value your company incorrectly it can lead to more problems down the line. 

Regardless of your future plan for your business, whether that may be selling or passing it down, you need a valuation to achieve your exit goals. To start analyzing your business’ worth, look at your total revenue, pretax income, accounts receivable and payable, loans, and rent or mortgage payments. 

Once you have figured out your valuation, it’s time to start planning your exit.

There are a few ways to figure out your perfect exit plan and a few different options. Here are the types of exit to consider, and what they may mean for your company:

  • Liquidation and closing your doors: This may be a tough decision to make, especially if you have built your company from the ground up, but sometimes this can be the best option to retire from work and continue living your life the way you want to!
  • Sell: Another great option if you want to move on from your company is to sell to another individual. Ensure that the person you are selling to will continue to run your business with the original values in mind and always has the best interest of the company in mind.
  • IPO (Initial Public Offering): This option can be more difficult for startups but could also be an option if you decide that it’s the best option for your company.
  • Merger and Acquisition: This option can be beneficial for small businesses who want to grow their business. If you merge with a similar company or sell to a company that is similar to yours, it will increase your reach and, in turn, increase your revenue.
  • Passive Income: You can pass the responsibilities of running your company to someone else, as you enjoy an ongoing revenue stream. You keep your ownership and receive annuities while letting someone else take the workload off of your plate.

If you prepare your business for an exit at the beginning of creating your company will set you up for success as you move forward. There are various options and routes you can take, and it may seem overwhelming at first

When it comes to planning a business exit, it all begins with keeping excellent financials. As you work to prepare your company for sale here are some tips on what to look out for. 

Many companies do not have financials that are clear and reflect an accurate representation of their business’ performance. Accurate reporting and expansive financial knowledge will help transform your books to ensure they are set up for success as you plan for exit,

According to business.com one of the main reasons it takes so long for businesses to get their company ready to sell “is that the overwhelming majority of small business owners don’t keep their financial and business records in anywhere near the condition a prospective buyer wants to rely on.” 

So, what does preparing for exit look like for you?

Work with your accounting department to ensure the books are as accurate as possible. You may want to bring in an outsourced accounting department or CFO to validate and prepare your financials for exit if you do not have a C Suite finance leader.

Would you be interested to know what a motivated buyer would pay for your company? If so, reach out to our team to find out! The process takes about 2 days of work and the results may surprise you.

Why Are Insurance Costs Going Up?

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One thing’s certain about 2023—insurance costs are going up and they are unpredictable.

At Fortis, we’ve seen our clients directly feel the impact of a rise in premiums. Over the next year, you can expect 15 to 40% rate increases on certain lines.

Let’s look into more details about why insurance costs are going up.

Fire Insurance Premiums

With the rise of wildfires in California, insurance costs have increased in various zones. ABC News reports that some business owners were even dropped from their coverage unexpectedly, writing that “in 2019, insurers did not renew 235,000 policies across the state.”

The premium increases forced businesses and homeowners to have a quick mindset shift and turnaround for new coverage. With the increase of high-risk areas, VFS Fire & Safety Security Services has personally watched clients caught off guard with the increase of fire insurance. So, how does this impact your fire safety? 

Factors that Impact Your Fire Insurance Costs

Your commercial building or home will have different insurance premiums based on various factors, as listed by Resinger Insurance:

  • Proximity to the fire department
  • Community awareness
  • High-risk area
  • Building size
  • Current fire safety equipment installed
  • And more

Mark Sektan from the American Property Casualty Insurance Association sheds light on the perspective of insurance companies. “Premiums are going up because the risk is going up significantly,” says Sektan. “One of the challenges insurance companies face is that because of the highly prescriptive regulatory system, [it’s almost like] we’re driving the car by looking through the rearview mirror,” said Sektan.

“…We base premiums on losses, not what we know, not what we see coming… we’re not allowed to use that type of modeling yet.”

With this perspective in mind, it’s important to make sure your commercial property is updated with the current fire safety guidelines. Learn more from our blog about prepping your commercial property for fire season.

Where Can You Manage Your Risk? 

Risk mitigation begins with what fire safety equipment and inspections your commercial building uses, and if your building is up to NFPA code. 

For some insurance providers, if you have a certain level of protection from sprinklers and monitors, it can potentially lower the cost of your premium.

The NFPA Code 5000, also known as the Building Construction and Safety Code, is a great start for checking to see if your commercial building is up-to-date on inspections and equipment.

The equipment that Fortis specializes in, and that should be inspected to match NFPA codes includes but is not limited to: 

  • Fire Sprinkler Systems
  • Fire Suppression Systems
  • Sound and Communication Systems (ERRCS and DAS) 
  • Integrated Security
  • Fire Alarm and Detection Systems
  • Fire Extinguishers

As mentioned above, the constant upkeep and inspections of your fire safety equipment can improve your insurance premium. 

Haven’t You Heard? We’re Fire Safety Inspections Experts

At Fortis, we believe your fire safety equipment is only as effective as the inspections performed on them. 

The frequency of these inspections ensures the most effective operating conditions for your building year-round and is critical to keep current with industry and insurance codes.

At Fortis, we have a diverse team of experienced fire protection professionals, all of who are capable of inspecting and servicing even the most complex fire protection systems.

Our advanced platforms and highly trained dispatch team allow us to manage inspections and testing from inception to execution.We tell you what’s due, when it’s due and why it’s due—which means constantly communicating with your team to keep you up-to-date on the latest information within your facilities.

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Leadership and Emotional Intelligence

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This article was originally published on https://eiexperience.com/blog/take-your-company-to-the-next-level-invest-in-the-right-people/

At Fortis, our goal is to invest in our people. It is the path to being the premier fire and life safety company and we take our commitment to the growth and development of our people very seriously.

Part of that commitment is manifest in the ways we foster connection, communication and personal growth and development in addition to productivity and our commitment to excellence every day.

Because of this, we source articles that we feel highlight our commitment to people-first culture. Enjoy!

Hiring and retaining is easier said than done. The maxim “many hands make light work” seems like a no-brainer when running an organization. Although teamwork is essential, you can’t just hire any “hands” to work in your organization. You have to think about their long-term devotion to the company, their fit in the company culture, and whether they genuinely make your life as a manager easier.


“No company can consistently grow revenues faster than its ability to get enough of the right people to implement that growth and still become a great company.”

– Jim Collins in How the Mighty Fall

It takes time and effort to find the “right people” to accompany you on your company’s journey.

It can be stressful to pass up otherwise qualified individuals who you know in your heart do not meet your specific needs. This stress, however, will be offset by avoiding the frustration of replacing the wrong person after months (or even worse, years) of trying to make it work. And once you do find the talented ones who are committed to your team, you’ll feel reassured that you found the “right” people to take your company to the next level.

The “right” people are the employees who naturally crave training, mentorship, and coaching— and are the ones you should invest in. The biggest mistake for managers today is embracing complacency. When organizations fail to provide professional development opportunities for their workers, they suffer early departures and high turnover rates. Companies will not only lose critical skills and information but will also have to bear the high expense of replacing personnel.

Take the Initiative to Invest

It is crucial to describe potential development opportunities to your employees and show serious interest in their intellectual development and future. Your employees will feel acknowledged, respected, and more loyal to the organization—all of which is an upward trajectory to retaining the “right” people. Moreover, implementing training programs to help your employees build and enhance their skills helps guarantee that you are fostering a competitive workforce in the future.

Let’s Talk About Emotional Intelligence

Buying stocks seems pretty straightforward, but it’s honestly not an easy feat. It’s incredibly nerve-wracking because returns aren’t guaranteed.

Investing in stocks is the same as investing in your people.

Companies struggle to select an optimal employee development program to implement in their workplace. But there is one essential component that all skills rely on: emotional intelligence.

Step Back from Micromanaging

Emotional intelligence (EQ) is the ability to detect, interpret, and regulate your own emotions to reduce stress and anxiety, communicate with impact, connect with others, overcome life’s obstacles, and resolve conflict. It is divided into five composite scales: self-perception, self-expression, interpersonal relations, decision making, and stress management.

Here are some examples of worthwhile investments in your staff that you can undertake today:

  • Hard and Soft Skills Building Programs
  • Emotional Intelligence Training
  • Leadership Development Programs
  • Mentorship and Coaching


Emotional intelligence is the utmost investment your firm can make in its employees today. It’s something that we all have, regardless of our position in the organization– but despite how many years we spend in college, most of us have never learned how to develop it in school. But the path to excelling begins with understanding and leveraging our emotional intelligence in all facets of life.

It Goes Both Ways

The employer-employee relationship is a two-way effort. For your employees to make your life easier, managers’ deliberate effort to be the employer of choice. After all, employees don’t leave companies—they leave managers. Bad managers foster toxic work environments, leaving their most valuable employees exhausted and anxious, which not only creates burnout but plummets their organization’s productivity. Bad managers pervade all parts of their employees’ lives; once workplace woes emerge in their homes, it causes a cascade of stress, discontent, and misery that impacts their personal lives. To ensure it doesn’t come to this and to take your leadership skills to the next level, check our latest blogs on leadership.

The Clock is Ticking

Whether it’s remote or live, EQ training is a highly versatile means of increasing employee experience in the workplace, from building and advancing skillsets to stimulating team bonding. But it’s important to note that the sooner you begin investing in your people, the more fruitful your investments will be in the long run on your company’s productivity, performance, and profitability..

overhead shot of storage tanks at an oceanside facility at dusk

Above Ground Tank Storage Requirements in 2022

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Most likely, your commercial property has an above-ground storage tank (AST). When’s the last time you had your tank(s) inspected? Odds are, your above-ground storage tank has taken the back burner in regards to safety regulations and guidelines.

Above Ground Tank Requirements

The National Institute for Storage Management (NISTM) located in Houston, Texas, outlines regulations and guidelines that should be followed for your commercial property’s safety.

In fact, NISTM has a course called “Tanks 101” that provides all the information that you need to know about your above-ground storage tank. The course overview talks about both above ground and under ground tanks in horizontal and vertical configurations.

Here’s a quick rundown of what NISTM has to say. “Having designed and built a good tank, the next problem is to ensure it remains safe and leak-free. The focus is on the well-known tank inspection standard API 653.”

The NISTM also claims that the following basic principles are key to understanding the safety of your above-ground storage tank:

  • “Shell design
  • Floating roofs
  • Foundations
  • Fixed roofs
  • Venting
  • Hydrostatics tests
  • Materials of construction”

As a commercial property owner, it’s important to be aware of these factors when building a new tank so that future inspections run smoothly.

Are you still itching to hear more from NISTM? You’re in luck! NISTM is soon hosting the 14th Annual National Aboveground Storage Tank Conference and Tradeshow this December. Visit the link above to learn more.

Common Challenges with Tank Inspections and Testing

Now for some common challenges regarding tank inspections and testing.

The federal requirements for above ground storage tanks say there should be frequent inspections and evaluations for any bulk storage container. 

Similarly, The United States Environmental Protection Agency (U.S. EPA) provides a downloadable “Spill Prevention, Control and Countermeasure Plan (SPCC) Program” that contains a Bulk Storage Container Fact Sheet. 

The fact sheet states you must “determine, in accordance with industry standards, the appropriate qualifications for personnel performing tests and inspections, the frequency and type of testing and inspections, which take into account container size, configuration, and design.”

The EPA also provides the difference between containers, which include:

  • Shop-built
  • Field-erected
  • Skid-mounted
  • Elevated
  • Equipped with liner
  • Double-walled
  • Partially buried

Required Testing 

The inspections that are required for bulk storage containers include: 

  • “Test or inspect each container for integrity on a regular schedule and whenever you make material repairs
  • Frequently inspect the outside of the container for signs of deterioration, discharges, or accumulation of oil inside diked areas. This visual inspection is intended to be a routine walk-around and inside the container’s supports and foundations,
  • You must retain testing and inspection records for 3 years. EPA recommends that formal test records or reports be retained for the life of the container.” 

It’s important to keep reports and inspections organized so you have evidence and reference of inspections that have been performed as well as when the next routine inspection should take place.

Integrity Testing

Some integrity tests that aren’t federally mandated, but HIGHLY encouraged include: 

  • Visual inspections
  • Hydrostatic testing
  • Radiographic testing
  • Ultrasonic testing
  • Acoustic emissions testing
  • Signs of deterioration
  • Accumulation of oil
  • Other systems of non-destructive testing

With the amount of testing that is required for any property or business owner, sometimes reports and small inspections fall through the cracks. 

Additionally, there are frequent changes in industry standards. Take the extra step of checking in with your Fire and Safety Inspection team to ensure all above-ground tank requirements are being met. 

Cargo crisis got you down? Us too. Learn more about how the cargo crisis might be affecting your industry in the future and why marine safety should be a top priority with a large number of cargo ships currently being stalled.

How long do you keep your safety inspection records and paperwork? It can be tempting to chuck the paperwork into the trash and forget about the details of your inspection. But, did you know that after a safety inspection of your above-ground tank, you’re supposed to keep those records for a minimum of 3 years?