Exit Planning
A very important part to business planning is making a plan for when the business owner leaves the business, whether voluntarily (in retirement or sale) or involuntarily (due to disability or death). Failing to make a plan can cause the business to fail, or at a minimum may cause the business owner to receive far less for it than would be possible otherwise. Succession planning should include a discussion of what the business owner wants to happen, how much he or she wants to receive, and who should take over the business.
Successful planning generally begins years, not months, before the owner wants to exit. It should include the assistance of other experts, including the business accountant, a real estate reviewer, valuation experts, and sometimes an intellectual property attorney to ensure the business’ intellectual property (including methods and client lists) has been properly documented and protected. A properly structured sale should include multiple offers and a definite process to ensure the owner receives payment.
If you are considering selling your business, and would like a consultation regarding the process, or are just planning for a future event, we would be happy to speak with you.