Exit Planning is simply Good Business strategy.

 ALL owners of privately held businesses are going to exit, either voluntarily or involuntarily. So, why wouldn’t you:

  • Develop a process that will help you make more money now?
  • Build independence?
  • Empower your team or heirs to take your business to the next level?
  • Dramatically increase your wealth?
  • Make your business more attractive and ready to transition when you do choose to exit?

Good Business Exit Planning is a process that develops a business transition plan by addressing three things: (1) maximizing the value of your business, (2) ensuring that you are personally and financially prepared, and (3) ensuring that you have planned for the next phase of your life. It’s not just evaluating and determining whether or not to sell the goose that lays your golden eggs.

  • Through the Value Acceleration Methodology we use, you will be able to Protect, Build, Harvest, and Preserve family wealth.
  • The process works by integrating and aligning business, personal, and family goals.
  • Preparing in advance can provide more money now, make your business more attractive, and increase your wealth.

Should I sell?

The Value Acceleration Methodology establishes three gates: Discovery, Prepare, and Decide. Each step facilitates important decisions, check points, and targets throughout the process.

  • Determine and close your Profit Gap, Value Gap, and Wealth Gap.
  • Evaluate and increase the value of your intangible assets which often represent 80% of the value of privately held businesses.
  • You will take the time to consider and build what a “successful” transition really means to you – personally, financially, and from the perspective of your business.

Understand the effect of taxes, lifestyle, and future income.

  • Consider estate, legacy, and legal planning.
  • Are there other business or philanthropic opportunities that you would like to pursue?
  • What will the next phase of your and your family’s life become?
  • Only then should you decide if it is time to sell the Golden Goose.

Where do you want your wealth to land?

This answer really should be determined before you get too far down the path as it could dictate the nature of the tax, legacy, and legal planning necessary. The earlier you start the more significant the income and estate tax savings can be. However, jump in at any stage and get it right. Just don’t get caught up in the details of the multitude of decisions.

How do I construct and coordinate this puzzle?

Assemble a strong deal team. Adopt and commit to a process through which you can create greater potential value, assure that the outcome will meet your expectations, and allow you to retain control throughout the various decision points. Consider a Certified Exit Planning Advisor (CEPA ® ) to lead your team.

View your financial position before, during, and after the transition from “altitude”. Formulate some key parameters, and understand the financial effects to you and your family before deciding on the legal strategies and documents.

Why don’t more owners do exit planning?

  • Don’t know how
  • Sounds confusing & time consuming
  • May be pulled in different directions by your existing advisors
  • They love their business
  • Not sure what to do after
  • Trapped by high income
  • Other urgent priorities
  • Confidentiality concerns