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Begin With the End in Mind

There are many reasons to think about an exit plan from your business well in advance of any date you set.

Identifying a clear picture of the role of your business, relative to your personal plans, will ultimately keep you focused on a clear purpose for your business and why.

Sometimes, we don’t get to exit on our own terms and things can happen unexpectedly. Markets and economies change. People become disabled; people die. Even if your business is in growth mode and you have no thoughts of retirement, you still need to deal with the contingencies of a forced exit. A sense of security for you, your family, your employees, and creditors are all reasons to begin now.

The more time you allow, the greater your probability for exiting on your terms and likelihood you’ll be able to handle contingencies in your financial plan.

As your Project Manager, we will help you:

  • Clarify your objectives and set expectations
  • Create financial models reflecting your current situation into the future
  • Assist you in determining the appropriate solutions for integrating your business exit into your personal financial goals
  • Coordinate and collaborate with your other advisors i.e. accountant, attorney
  • Implement your customized strategy
  • Review and measure your success

Regardless of where you are at in your business, we can help you know what questions you should be asking at each stage. Below is a sample of items to consider:

Five to 10 Years – Leverage opportunities available to you.

  • Reduce taxes by reviewing your business structure
  • Generate other sources of retirement income
  • Develop a management team
  • Build systems and processes that are repeatable and measurable.

Three to Five Years – Maximize the owner’s income from the business.

  • Enhance value drivers
  • Leverage, reduce, or eliminate taxes by balancing your need for income, equity, and control of the business
  • Grow Cash Flow
  • Review Estate Planning Techniques and Business Value
  • Secure a potentially higher sale price by completing capital improvements
  • Start reporting improved earnings
  • Identify what you’ll move towards after your exit from the business

At Least 1 Year – Letting Go

  • It takes time to structure a sale
  • Underwriting standards are more demanding today. You’ll need to consider financing options.
  • Selling the business to employees in the form of an ESOP can take a year to complete.

Exiting a business is not an event, it is a process. Call us today!