Exit Planning for Business Owners
Using a systematic approach, we work with business owners who want to leave their business successfully but don’t know how to accomplish that goal. This process uses the owners’ advisors (legal, accounting, valuation and business consulting) or, if desired, specialists we recommend to help business owners:
- Maximize the value they receive on the sale or transfer of their business
- Create and preserve value as profitably as possible in the sale
- Integrate personal, financial and estate planning goals with the goals of their business to maximize profit and minimize tax liability
In the first step in this process we help identify owners’ goals and objectives. We must understand when they would like to begin transitioning from their business. We have to identify their personal financial goals. We need to clarify whether the business owner would like to transfer their business to a third party or to an insider such as a family member or key employee. In addition, there may be other objectives that the business owner wishes to achieve such as taking care of employees.
Our next step is to understand the value of the business within the context of our Exit Plan. It is important for the Business Owner to understand that the “value” of their business (as determined by a valuation) and the amount of cash they take from it may not necessarily be the same thing.
In our third step, we work to ensure that we preserve as much as possible from taxation, promote greater value of the business through value drivers and work to protect the business value from the grasp of creditors.
The direction of our fourth and fifth steps depends on the owners’ choice of Exit Plans. If selling to a third party we will follow a very specific systematic process. If transferring the business to an insider we work to minimize your risk by reducing the time that you must carry a note.
We must spend some time planning for contingencies. We work to be certain that your family will benefit from your life’s work should you be unable to continue working in your business.
Finally, when you have successfully transitioned from your business we want to make sure that you accomplish your short and long term personal financial goals.
Exit Planning is a systematic process that requires a collaborative team of Exit Planning specialists. Please come to our next Executive Briefing (see “Upcoming Events”) for a better understanding of Exit Planning and what you can do to ensure a successful transition from your business.