Business Exit Strategy Plan
Our Seven-Step Process
A Business Exit Strategy Plan will guild business owners and their advisors towards executing an exit that focuses on protecting the wealth that is “trapped” in their illiquid business. This serves as an educational tool and practical guide for deciding the right Exit Strategy for the owners.
When Business Owners clearly define their goals and become well informed of all the options to exit a business, they can be proactive in protecting the wealth that has accumulated over their lifetime of hard work with a well-thought-out and properly timed plan for the optimal transfer and exit from their business.
Our seven-step process for creating a Business Exit Strategy Plan is as follows:
- Address Owner’s current concerns
- Set Personal / Family Goals
- Quantify Business & Personal Resources and Insurance Needs
- Maximize and Protect Business Value
- Owner Transfer Plan
- Contingency Plan
- Estate Plan
Get CLARITY (TM) – you need it to get the success you want. This tool shows business owners their ability to grow and get transition ready. Take this assessment today – Click Here
As a business owner, how ready are you for a business exit? Take the Business Exit Readiness Index(TM) assessment that provides you with a report showing your exit readiness. Click Here to take the assessment and get your customized report. All information provided is kept confidential.
How dependent is your business on you? Find out by taking the Owner Dependence Index(TM) assessment. Click Here to take the assessment and get your customized report. All information provided is kept confidential.
Business Exit Strategy Planning has a high ROI (Return on Investment)
When Business Owners have been working in their businesses for many years, often they are operating it without a clear vision for the business or for themselves. Once the Exit Planning process begins, a clear vision for the future is created. Business Owners then gain new energy, discovering or re-discovering their direction, motivation, joy, passion, energy, creativity, and commitment. They also get to know their business better than they ever did before. It causes the Business Owner to reinvigorate their enthusiasm and passion for the business which rubs off on the employees.
A well-designed and implemented Business Exit Strategy Plan is a valuable business and personal planning tool that enables the Business Owner to:
- Achieve business and personal goals
- Facilitate retirement
- Control how and when they exit
- Improve family harmony
- Maximize company value
- Reduce stress and uncertainty for themselves and their families and employees
- Provide uninterrupted service for clients
- Enhance employee loyalty
- Minimize, defer, or eliminate capital gains and income taxes
- Maximize retirement income and assets
- Enjoy greater flexibility and choices
Steps for Planning your Exit
Set Personal / Family Goals
It is the goals and motives that drive the exit strategy planning process. Setting Goals will include goals for yourself and your business. It could also include goals for your spouse, your family, and your successor.
Quantify Business & Personal Resources & Insurance Needs
Will the amount of money you have saved today satisfy all your future financial goals? This also includes finding out the value of your business which is a critical determining factor of whether you can afford the exit option that you most desire.
Maximize & Protect Business Value
It is important for potential buyers of your business to see that you can plan the future of your business for growth and that you meet that plan. This will require an understanding of the main drivers that increase future value of the business and focusing on them. Having the right plan ensures a higher value when selling your business.
Ownership Transfer Plan
This is determining how will the ownership be transferred to meet all the goals that you set in the most effective and efficient way.
Contingency Plan
A contingency plan is simply a proposed implementation plan that is triggered by some event, emergency, or new information. The event or emergency may or may not happen but is liable to create significant business problems, and potential or real liabilities if not dealt with quickly.
Estate Planning
It is important to recognize the fact that the government has set the rules of the game and without proper estate planning your family can easily end up on the losing end.