At some point, every business owner will leave their business. For most business owners, this is a once in a lifetime event. It’s critically important because the average business owner has 50-90% of their net worth tied up in their business. Most businesses are not saleable today for what the business owner expects.
Preparing your business for sale can be a hectic affair, perhaps triggered by an unplanned event and constrained by time. This typically leads to many unpleasant trade offs and a result that falls far short of the owner’s objectives. The alternative is a systematic approach initiated 2-4 years in advance and driven entirely by your personal exit objectives. This is the approach we can help you with.
When Should You Start Your Exit Plan?
The short answer: two to four years before your planned exit.
The earlier you start planning, the higher the likelihood that you will meet all of your objectives and leave your business on your terms and on your schedule. One of the key ingredients to a successful Exit Plan is time. Depending upon many factors such as your objectives, your priorities, the current condition and value of your business, your estate plan, and your non-business assets, there may be changes that have to take place before your exit that require years to implement.
Although you can’t control the ups and downs of the Merger and Acquisition cycle or the tax code, you can control the preparation of your business. If you plan to leave your business within the next 5 years, the time is now to start working on your business and bringing under your control, the many moving parts that are required to accomplish a successful exit.
The Exit Plan adviser facilitates and manages the project and coordinates the efforts with you including potential targets to buy your business, or MBO's. It is important to get the input of your current trusted advisors if they already have a deep understanding of your situation. The Exit Plan advisor facilitates and manages the project and coordinates the efforts of your other advisors to avoid any duplication of effort.
The next step is a complimentary half-hour telephone conversation with our Exit Plan Advisor. This enables you to learn more about the Exit Planning process and what is involved. The call also allows you to learn more about us and how we can help you. You’ll know at the end of the call if the chemistry is right and you want to proceed.