Business Exit Planning

Prepare for the Inevitable

     There are a few certainties in life. One of these is that every business owner will exit his business at some time, one way or another. The most important thing a business owner can do is prepare to leave the business on his or her own terms, in the manner of his or her choosing. In order to do this the business owner must plan on how and when they will exit the business.

Proper Planning

     Proper exit planning involves the identification and organization of owner-driven exit plan issues and creates a written roadmap of recommended actions.  Exit planning requires a multi-disciplinary approach, implementation of recommendations, and incorporates timelines for execution and accountability.

Seven Step Process

     The most efficient way to plan for this exit is by following the seven-step exit planning process outlined below:

     1. Identify exit objectives--what does the business owner want to accomplish?
     2. Quantify business and personal financial resources--determine the value of the business.
     3. Maximize and protect business value.
     4. How to transfer the ownership to a third party.
     5. How to transfer the ownership to insiders--family members or key employees.
     6. Set up a business continuity plan.
     7. Personal wealth and estate planning.

     Each step is equally important in a well-designed business exit plan and requires the input from a team of professionals. If you are a business owner and need to plan on how and when you will leave your business, or if you would like a white paper on the issues involved in exit planning, please contact Randy Lish.