Strategic Planning for Your Business Exit

Briefing Outline: The Essential Steps to a Successful Exit

Setting Exit Objectives and Selecting Your Exit Path An Exit Plan is based on three owner-established goals: 1. When you want to leave 2. How much money you want when you leave 3. To whom you want to transfer the business. These form the foundation of your Exit Plan.

Determining Current and Projecting Future Business Value The first step establishes what you want or need in order to leave your business in style. The second determines what you have (how much is your business is 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.

Enhancing Value Drivers 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.

Pre-planning for the Transaction If your goal is to sell to a third party, learn how to do so for top dollar. Or, in a transfer to management or family member, learn how to orchestrate a successful sale to insiders (who often lack sufficient cash).

Risk Management for the Business and Owner 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 to minimize these risks

Personal Financial and Estate Planning Issues  The sale of a business generates cash. Cash for you, your family, and the IRS. Learn how to dramatically reduce the IRS’s share.