Exit Planning

Exit planning is the process of developing a business owner’s strategy for what may be the biggest financial transaction of his or her life… the transfer of the business. That strategy may be a succession to the next generation of family. It could be a sale to employees. It may be a sale to another entrepreneur, or acquisition by a larger company. In some cases, it could require an orderly dissolution. In every case, it involves tax, legal, financial, operational and risk management expertise. Exit planning, in the true sense of the word, is coordinating all those skills to work together for a single objective.

  • Manufacturer Stuck in the “Neutral Zone”Manufacturer Stuck in the “Neutral Zone”
    Here is how exit planning helped a business owner out of the Neutral Zone. This manufacturer reached out to an exit planning consultant after receiving a book on planning as a gift from a local professional. He was in no particular hurry to leave his business. In the preceding twenty years ...
  • NQDCs – Funding and ForfeitureNQDCs – Funding and Forfeiture
    In our last article, we discussed Non-Qualified Deferred Compensation (NQDC) plans as a tool to compensate key employees for achieving long-term goals. One component of such plans is the fact that they are frequently unfunded and legally considered an unsecured promise to pay. Nonetheless, both plan sponsors and recipients often want a funding mechanism to set aside assets, manage cash flow, or hedge the liability. In addition, employers typically want conditions under which they can rescind the plan for cause, including failure to achieve the objectives the plan was designed to incentivize.
  • Quality of Earnings and Technology CostsQuality of Earnings and Technology Costs
    When a Quality of Earnings audit identifies deferred technology, the price can be magnified many times.  Are you deferring technology costs? A few months ago, a subscriber to our planning tools called with a tech support question. “Your software doesn’t work,” he said. After some investigation, we identified the problem. He ...
  • The Inexperienced Advisor – An Exit Planning Horror Story for Business OwnersThe Inexperienced Advisor - An Exit Planning Horror Story for Business Owners
    This is a cautionary tale for business owners—one that’s “based on a true story.” The facts are real, although the exact sequence of events might raise questions if the IRS were to take a closer look. A small business owner received a $1,000,000 offer to sell his company. He had already ...
  • What Business Owners Should Know from the 5th Annual Exit Planners SurveyWhat Business Owners Should Know from the 5th Annual Exit Planners Survey
    Between February 1 and March 2, 2025, ExitMap conducted its 5th annual survey of professionals who help business owners plan successful exits. This is the only survey that gathers insight across multiple advisory specialties—offering a wide-angle view of the professionals supporting entrepreneurs like you during one of the most critical ...
  • The Exit Planning Fallacy – A Business Owner’s PerspectiveThe Exit Planning Fallacy - A Business Owner’s Perspective
    One of the most common sales pitches you might hear from someone claiming to help you “enhance value” goes something like this: “I’ve reviewed your company and believe it’s worth $4.2 million today. With the right planning, it could be worth $7.7 million. Would you rather exit with $4.2 million or ...
  • Decisions Made from FearDecisions Made from Fear
    When Fear Dictates Decisions I can’t. We won’t. I shouldn’t. Sound familiar? These thoughts creep in as your business grows. You’ve overcome a lot already—taking that first leap, pushing through uncertainty, making tough calls when the stakes were high. But now, you have something to lose. The fear of getting it wrong can paralyze progress.
  • Missed OpportunitiesMissed Opportunities
    Your business is doing pretty well. You’re adding to your personal savings every month and are more focused on tax strategies than making payroll. But how do you know if you’re leaving opportunities on the table? Some indicators are obvious. Others, less so. One of the easiest to spot is stagnation. Businesses ...
  • Goals and ResolutionsGoals and Resolutions
    Businesses set goals. These can be budgetary, operational, recruiting, sales or profit oriented. Individuals make resolutions.
  • What is “Holistic” Planning?What is “Holistic” Planning?
    Financial planners use the term “holistic planning” frequently. It’s meant to indicate that they consider the client’s short- and long-term life goals and the future they visualize. According to Fidelity Investments Holistic Wealth Planning is continuous and considers two dozen aspects of client wealth objectives. The Valuation Reality Gap Only one of ...

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