Exit & Succession
Guidance to help clients profitably sell to an outside party or successfully conduct a family succession.
Creating Successful Transitions
Most owners only exit a business once in their life. It’s a new experience with a series of decisions that can alter the outcome. The first question is will you be merging the company, selling it to an external buyer, wanting to conduct a family succession, considering selling to employees or setting up an ESOP or transitioning to an existing co-owner or partner?
Time is a Valuable Tool in Exit Planning
In general, the shorter the planning timeframe is, the less profitable the sale may become. Time enables you to refine operations to maximize value; ensures key-men and non-competes are in place; allows owners to remove themselves as much as possible from the day-to-day operations, and provides time to let a tax strategy unfold, especially if gifting is involved.
Start with a Transitional Assessment Plan
This is our process for you to begin to understand what you need to do, what timeline you need to put in place and how to get started. The first step, starting up, is the hardest. Our Assessment is an easy way to help you see the complete picture along with a discussion of your options. A successful transition can take years so planning the stages is essential.
- Establish a Timeline; this could be 6 months or 15 years
- Take Steps to Enhance Value; make the business physically and financially attractive to buyers
- Separate Yourself from the Business; the business is now an asset for sale
- Depersonalize Decisions; remove the emotional connection
- Create a Tax Plan; develop a retirement strategy, address estate needs, plan for trusts, life insurance, and health care
- Prepare for Post-Exit; establish an investment strategy for the proceeds
Our Role is to Coordinate the Transition
Some of the steps are accounting, tax and financial reporting related. Other steps include legal issues, investment decisions, insurance considerations, personnel and a host of others areas inside your business. Our efforts are designed to make your transition as successful as possible from a selling price all the way through to the emotional elements involved in leaving.