Exit Planning

For Those Who Change Lanes With Purpose

What will you do next?

A large red wooden door with rivets, black handles and lock set into a pink wall with a hanging lantern above and a large blue question mark painted on the left side of the wall.

You’ve built a successful business, now it’s your turn.

Some Exit Options Include

  • Management Buy Out

  • Sale to Existing Partners

  • Sale or Gift to Family Members

  • Sale to Employees via ESOP

The Exit Planning Process for Small Business Owners 

Throughout the process, it is crucial to engage a team of experienced advisors who specialize in exit planning, including attorneys, accountants, financial advisors, and business brokers. Regularly review and update the exit plan as circumstances change.

By following a structured exit planning process, business owners can maximize the value of their business, achieve their personal and financial objectives, and ensure a successful transition to the next phase of their lives.

The exit planning process involves a series of steps and considerations aimed at effectively transitioning a privately-owned business. Here is a summary of the process:

What is exit planning?

Business exit planning is a strategic process that encompasses a range of considerations and actions to effectively transition a privately-owned business. It involves addressing business, personal, financial, legal, and tax aspects to maximize the business’s value, minimize taxes, and ensure the owner achieves their personal and financial goals during the exit. Exit planning includes contingency plans for potential events such as illness, burnout, divorce, or death. By engaging in exit planning, business owners can develop a strong foundation for their company, increase its transferability, enhance its value, and ultimately create a smooth and successful transition.

Beach with white sand, two palm trees, a sailboat, thatched umbrella, lounge chair, and people in the water with green hills in the background.

  • Begin by evaluating the current state of the business, personal goals, financial situation, and potential exit options. Understand the value drivers and areas that need improvement.

  • Develop a comprehensive exit plan that addresses business, personal, financial, legal, and tax aspects. Set clear objectives, define strategies, and establish timelines.Description text goes here

  • Implement strategies to increase the value of the business. This may involve optimizing operations, improving financial performance, enhancing customer relationships, and building intangible assets.

  • Prepare the business for a smooth transition by establishing systems and processes, documenting key information, and addressing any legal or financial issues. Develop contingency plans for unexpected events.

  • When the time is right, execute the exit strategy. This may involve selling the business, transferring ownership to family members or employees, or pursuing other exit options. Maximize value and minimize tax implications.

  • Ensure personal financial goals are aligned with the exit plan. Coordinate with financial advisors to manage wealth, retirement planning, and estate planning.

  • Create a plan for the post-exit phase, including personal goals, new ventures, philanthropy, or retirement. Consider the impact on relationships, lifestyle, and overall well-being.

Smiling woman with red hair standing in front of a whiteboard, hands clasped, with her reflection visible on the board.

Create a plan for the post-exit phase, including personal goals, new ventures, philanthropy, or retirement. Consider the impact on relationships, lifestyle, and overall well-being.