Creating Successful Transitions
How often do you exit a business? Most owners only exit a business once in their life. It’s a new experience with a series of decisions that can alter the outcome.
- Lay Out the Plan to Begin the Process
- Decide an Exit Date
- Acquire Independent, Objective Professionals to Help
- Maximize the Sale Value
- Plan the Post-Sale Tax Impact
What is Your Best Strategy?
To close the business, merge it or sell it to an external buyer, family member, employee or existing co-owner or partner? Let us help you assess your options.
Time is a Valuable Tool in Exit Planning
In general, the shorter the planning timeframe is, the less profitable the sale may become. Time enables you to refine operations to maximize value; ensures key-men and non-competes are in place; allows owners to remove themselves as much as possible from the day-to-day operations, and provides time to let a tax strategy unfold, especially if gifting is involved.
How to Begin the Process…
- Establish a Timeline; this could be 6 months or 15 years
- Take Steps to Enhance Value; make the business physically and financially attractive to buyers
- Separate Yourself from the Business; the business is now an asset for sale
- Depersonalize Decisions; remove the emotional connection
- Create a Tax Plan; develop a retirement strategy, address estate needs, plan for trusts, life insurance and health care
- Prepare for Post-Exit; establish an investment strategy for the proceeds