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.
Exit Strategy – Harvest or Grow? In every internal transfer, whether to family or employees, the owner/seller has to make the harvest or grow decision. We’ll presume that your business has already reached a point where its value meets or exceeds your financial objectives as the … Read More » Owner Obstacles to an Exit Plan Owner obstacles to the implementation of an exit plan are often unconscious, but they can be dramatic. Their attachment to the business can be difficult to break. An advisor spends a lot of time and energy developing the vision for … Read More » Entreprenuers Don't Use Rearview Mirrors Entrepreneurs don’t use rearview mirrors. All business owners are goal oriented. From the day you founded or assumed control of your company, you set targets and achieved them. That is why you are successful. You know how to define a … Read More » Avoiding the "Exit" Word Owners don’t like the “Exit” word. They tell us regularly to change it, or that talking about it is uncomfortable. It’s the elephant in the room. I understand. Anyone selling life insurance or funeral pre-planning knows that you don’t start … Read More » Main Street Business and Middle-Market A common area of confusion among both business owners and advisors is the difference between a “Main Street” business, a “Middle Market” business, and a “Mom and Pop” business. Main Street Businesses The International Business Brokers’ Association and other professional … Read More » Contingency and Continuity Planning When business consultants talk about preparing for unforeseen problems, they frequently commingle the terms contingency and continuity. The terms are not synonymous, and there are important differences between them. Contingency Planning Contingency planning is generally accepted to mean how a … Read More » EBITDAC III: Where are we now? EBITDAC is a facetious term for Earnings Before Interest Taxes Depreciation Amortization and COVID. I first discussed it in this column back in April of 2020, with an update on the impact of PPP loans in May of that year. … Read More » Manager or Leader? Planning Succession Should you hire a manager or leader as part of your succession planning? Before you make that decision, you need a pretty good idea of what your exit plan is. Once your objective is set, it’s one of the answers … Read More » Non-Qualified Plans in Exit Planning When I talk to business owners about “non-qualified plans,” their first reaction is often “Hold on there. I don’t want to get in trouble!” The term “Non-qualified” merely refers to the Employee Retirement Income Security Act of 1974, more commonly … Read More » The Missing Employees Are you missing employees? Where did they go? I just got off the phone with a restaurant owner who temporarily closed one of his locations so that he could redistribute the staff to the other three. I’ve also heard or … Read More » Internal Leaders Affect the Value of Your Business Internal leaders may not be obvious and can influence your team either positively or negatively. If you fail to identify them, however, you could see a dramatic effect on the value of your company. Read More » The Coaching Skill in Exit Planning Technical advice is a requirement in exit planning, but coaching skills are too often overlooked. Read More » The Dismal Ds and Exit Planning The Dismal Ds are a cynical list of problems that can force your exit from the business, but they are no joke. Read More » Exit Planning When Kids Don't Cut It When passing your business to children, other stakeholders include key employees and offspring who are not involved in the company. Read More » Your Exit Plan: The 3 Inarguable Reasons to Start NOW What is Your Exit Plan? If you’ve ever done a business plan for the purpose of raising capital, one of the key questions is “What is your exit plan?” Many business owners think that question is self-serving, intended merely to … Read More » |