Exit planning services are ideally suited for entrepreneurs or business owners looking to exit their business in a 2-to-5-year horizon.

Exit Planning

An exit plan is a comprehensive road map that addresses business, personal, financial, legal, tax, and value creation involved in transitioning a privately owned business.

Your exit plan should focus on three main objectives:

1) Maximizing your company’s value through long-term strategic planning before exiting

2) Understanding what needs to happen for you to be personally and financially prepared

3) Planning for your retirement life plan

A comprehensive exit plan provides business owners with a clear strategy to help exit their business when and how they choose, to maximize and fulfill their personal and business objectives.

The purpose of exit planning is to formalize the entrepreneurs’ businesses with the proper systems, human capital, and processes to make their businesses transferable.

Exit Planning Process

We help you start the process by valuing your business and determining the assets needed to fill your retirement wealth gap, if there is one. We focus on helping you to methodically and efficiently de-risk and grow your business, increase transferability, and attain the best possible exit.

The process commences with a business valuation of your business by a Certified Valuation Analyst that determines the value of your business.

Once we determine the value of your business, we review your current financial situation to determine the wealth gap needed for retirement. We then analyze how much of the wealth gap can be closed by your current assets versus the value of your business.

Once we determine the wealth gap, we will be able to ascertain the minimum target value for your business in order for you to achieve your goals.

After determining the minimum target value, we conduct a complete and thorough due diligence of your business, focusing on de-risking and improving the transferability of your business.

Once the due diligence is completed we create an overall assessment and a long-term strategic plan “strategic roadmap” through the time period leading up to your retirement or business exit. The strategic roadmap will address your current assets, current wealth gap, actions needed to de-risk your business, and actions needed to grow your business prior to exiting your business.

Once we have created the strategic roadmap, we guide you through the execution of the roadmap to increase the value of your business in order for you to attain the capital needed for your retirement.

 

Process Overview

  1. Business Valuation

  2. Business, Personal and Financial due diligence

  3. Quantifying the Wealth Gap for Retirement

  4. Creation of a long-term Strategic Plan

  5. De-risking your private business

  6. Growing your private business

  7. Exit Timing and Options

An effective plan

The effective exit plan should include these six components:

  • A concise statement of your business, personal, and family/estate goals

  • A detailed business valuation to establish a baseline value for the business

  • A plan to help you identify specific ways to enhance the value of the business prior to your exit

  • An analysis of the pros and cons of your different exit alternatives, such as a third-party sale, management buyout, family succession, or liquidation

  • Suggestions to minimize any capital gains, ordinary income, and estate taxes related to the exit

  • An action plan that details the specific personal and business steps you must take in order to prepare for your exit

Act now

Even if you're not looking to exit, having an exit plan allows your business to be ready for any event. If your business is in a high growth mode and you have no thoughts of retirement, having a plan in place will bring a sense of security to your family, employees, and colleagues.