OBJECTIVE: “Exit” is not a four-letter word. How planning for the inevitable transition from your business will maximize value and odds of success.
Discussing the inevitable “exit” from your business is often a taboo subject. Owners conjure thoughts of death, taxes, family conflict, or life post-business. Ironically, not having these conversations well before the transition is what causes problems. OK … planning won’t prevent death, but business continuity planning (Step 6) will ensure you still achieve your goals.
Effective exit/transition planning goes well beyond these topics and should be done 3-10 years ahead of the desired transition. We will discuss the steps to planning, building a planning team, and what you can do to get started with each.
Step 1: Determine your exit objectives. When? How Much? To Whom?
Step 2: Determine your business & personal financial resources. How much do I have and how much do I need?
Step 3: Build & preserve business value. How do I build a valuable, sellable business?
Step 4: Evaluate 3rd-party sale options. What makes my company or industry attractive? When is the best time to consider a sale? How do I minimize taxes?
Step 5: Evaluate inside-transfer options. How can a poor employee or child buy my business if they have no money?
Step 6: Business continuity planning. How can I achieve my goals even if I don’t survive?
Step 7: Personal wealth and estate planning. What do I really need and how long will it last? What’s the best way to support a charity?
Whether you are 2 or 20 years into your business, the time to start this discussion is now. Join us to discuss these important questions and more.