There are a lot of reasons to go into business: independence, financial security, the pursuit of a dream. But have you thought about how you are going to get out?
Exit Planning is a customized process of setting goals and deciding how best to achieve them. Whether your successor will be your children, a key employee or an outside buyer, Exit Planning helps you maximize your financial return and minimize your tax liability when you transfer your business. If you die or become disabled before you retire, Exit Planning will help the business survive your departure – enabling you and your family to receive its full value.
Seven Steps to a Successful Exit:
Step One – Establishing Owner Objectives™
A winning Exit Plan rests on three owner-established goals:
1. When you want to leave
2. How much money you want when you leave
3. Who you want to leave the business to
These form the foundation of your Exit Plan.
Step Two – Establishing Business Value and Cash Flow™
Step One establishes what you want or need in order to leave your business in style. Step Two determines what you have -how much is your business worth? If you're selling to a family member, key employee or co-owner, future cash flow (for reasons you will learn) of the business after you leave it, is even more important than value.
Step Three – Promoting Value™
What features, or characteristics, are necessary to make your business saleable and valuable? These features (Value Drivers) either reduce the risk associated with owning the business or enhance the prospects that the business will grow significantly in the future. Find out what they are.
Step Four – Sale to a Third Party for Top Dollar™
If your goal is to sell to a third party, learn how to do so for top dollar.
Step Five – Transfer To Management or Family Members™
A sale to insiders does not end with the closing. Only when your price is paid in full does the transfer end. Learn how to orchestrate a successful sale to insiders who often lack sufficient cash.
Step Six – Developing a Contingency Plan for the Business™
But business continuity is much more than simply making sure there is a new owner. If you die or become disabled before your exit is complete, your dream of financial security will become unattainable. Learn how Business Continuity is done whether or not you have a co-owner
Step Seven – Wealth Preservation Planning™
The sale of a business generates cash. Cash for you, your family and the IRS. Learn how to minimize the IRS’s share.
