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"As much as you might love running your business, you must have an end-goal in the plan. At the very least, an exit strategy keeps you from turning your business into a glorified job – working from home, but with longer hours” |
- Kevin Donaldson |
Business Exit Planning
Whether Planned or Unplanned – You Need a "Plan"
Knowing how you will exit your business means knowing how you want to realize the value you’ve built in your business over what could be a lifetime of work.
But protecting your business value also means having a Business Succession Plan in the event of death or disability.
We prepare your company for the sale of your interest, sale of the company or even an IPO. We design and draft the necessary corporate documentation including contracts, buy-sell agreements and golden parachute plans. Our plans ensure business continuity and lower the risk of conflict between remaining shareholders and the estate of a departed shareholder.
We define the necessary budget for insurance and/or reserve funding vehicles to guarantee sufficient liquidity to fund a voluntary or involuntary exit event.
We integrate personal wealth succession and asset protection planning into the business exit planing
But protecting your business value also means having a Business Succession Plan in the event of death or disability.
We prepare your company for the sale of your interest, sale of the company or even an IPO. We design and draft the necessary corporate documentation including contracts, buy-sell agreements and golden parachute plans. Our plans ensure business continuity and lower the risk of conflict between remaining shareholders and the estate of a departed shareholder.
We define the necessary budget for insurance and/or reserve funding vehicles to guarantee sufficient liquidity to fund a voluntary or involuntary exit event.
We integrate personal wealth succession and asset protection planning into the business exit planing
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Selling Your BusinessLeave On Your Terms
You've decided to sell your business and move on to the next chapter in your life. Now you have to get your business ready to sell and structure the plan while avoiding excessive liabilities, taxes and conflict.
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Options to Exit Your Business
Liquidation
This is the close shop and sell all the assets exit strategy. For small businesses, especially those that are dependent on the performance of a single individual, liquidation is sometimes the only option as there's really nothing else to sell.
Liquidation Over Time
In this exit strategy scenario, the owner(s) extracts most or all the profits out of the business over time (before eventually selling or closing the business), rather than reinvesting them in the company for expansion.
Keep Your Business in the Family
The dream of many small business owners, keeping your business in the family ensures that your legacy lives on and provides a living for your heirs.
Sell Your Business to Managers and/or Employees
Current employees and/or managers may be interested in buying your business.
Sell the Business in the Open Market
This is the most popular exit strategy option for small businesses. At a certain point in time, often when he or she is ready to retire, the business owner puts the business up for sale for a certain price — and hopefully walks away with the amount of money she wanted to get for it.
Sell to Another Business
Positioning your small business to be a desirable acquisition can be very profitable. Businesses buy other businesses for all kinds of reasons, such as using a new acquisition as a quick path to expansion, realizing synergies from complementary business activities, or simply buying out (and getting rid of) the competition.
The IPO (Initial Public Offering)
While not suitable for all small businesses, the IPO can be a viable exit strategy for large established business.
This is the close shop and sell all the assets exit strategy. For small businesses, especially those that are dependent on the performance of a single individual, liquidation is sometimes the only option as there's really nothing else to sell.
Liquidation Over Time
In this exit strategy scenario, the owner(s) extracts most or all the profits out of the business over time (before eventually selling or closing the business), rather than reinvesting them in the company for expansion.
Keep Your Business in the Family
The dream of many small business owners, keeping your business in the family ensures that your legacy lives on and provides a living for your heirs.
Sell Your Business to Managers and/or Employees
Current employees and/or managers may be interested in buying your business.
Sell the Business in the Open Market
This is the most popular exit strategy option for small businesses. At a certain point in time, often when he or she is ready to retire, the business owner puts the business up for sale for a certain price — and hopefully walks away with the amount of money she wanted to get for it.
Sell to Another Business
Positioning your small business to be a desirable acquisition can be very profitable. Businesses buy other businesses for all kinds of reasons, such as using a new acquisition as a quick path to expansion, realizing synergies from complementary business activities, or simply buying out (and getting rid of) the competition.
The IPO (Initial Public Offering)
While not suitable for all small businesses, the IPO can be a viable exit strategy for large established business.