Plan your exit strategy today
Preparing an exit plan to your business isn’t one big decision. It’s a series of choices, assessments and reassessments. It’s a process, and the longer you give yourself, the better off you’ll be.
An exit plan has many moving parts. Check out our comprehensive guide to learn about the four common stages of exit planning and how to take each one in stride.
Exit Planning and COVID-19
COVID-19 is affecting everything right now, including exit plans. How can you keep your plan focused amid uncertainty? We offer some suggestions.
Why Is Exit Planning Important?
- Recent studies show that 66% of the current American business market is owned by Baby Boomers who are set to transition over the next 10 years.
- Statistics also show that only 20-30% of businesses that go to market actually sell. That leaves up to 80% of business owners without solid options to reap the benefits of their years of hard work and ensure their business, their family, their employees and their financials are set up for success.
- Over 50% of business owners say their exit plans are at least three years out, with some saying as far as 10 years down the line.
- Over 60% of business owners say it is important for the company to be profitable and successful through the ownership transition process.
Exit Planning Is a Journey
There will be many choices to make as you plan for transitioning your business. Each decision is likely to open the door to several other decisions. While every individual journey will be unique, there are four common stages we encourage you to focus on as you plan for a successful exit:
- Get really honest about your business
To create a solid transition plan for your business, you first need to have a clear understanding of where your business is now and what it’s worth. - Know your options for exit
It’s a simple question with a not-so-simple answer—who is going to buy your business? Some traditional answers are family members or competitors, but there are other options you may have never considered. - Create a plan for selling your business
Due diligence extends to both the buyer and seller in any transaction, and there’s plenty of things to consider, including quality of earnings, taxes, working capital and more. - What comes next/don’t forget about yourself
If you’re headed off into retirement after your sale, hopefully you’ve been working with your financial advisor on a wealth plan this entire time, as well as laying the groundwork for an estate plan.
We’ve created a free comprehensive guide to help you understand the possible decisions and actions you should be taking on your journey.
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Schedule a free 30-minute consultation with one of our professionals to discuss your exit strategy.
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Schedule a free 30-minute consultation with one of our professionals to discuss your exit strategy.