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.
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 » Protect Your Business with A Solid Continuity Plan A Solid Continuity Plan A great characteristic of successful business owners is that they are optimistic people. They have a “can do” attitude, setting their goals high, taking risks, hiring the right people, constantly striving to improve the delivery of … Read More » EBITDAC : What is Your Business Worth Now? Several friends have sent me a picture of an EBITDAC coffee mug this week. As it states, EBITDAC stands for Earnings Before Interest, Taxes, Depreciation, Amortization and Coronavirus. Will this be the new measure of cash flow for valuing your … Read More » Exit Planning in a Crisis Why would you be exit planning in a crisis? At the height of the economic expansion (a few months ago in late 2019) I was reviewing a company’s financial statements. Their sales were stagnant, and profits were minimal. When I … Read More » Quarterbacking is Not Exit Planning Quarterbacking is a popular term when exit planners are talking to clients. It’s supposed to invoke a vision of someone who is in control. Think about a Tom Brady, Aaron Rodgers or Patrick Mahomes standing tall in the pocket, surveying … Read More » Exit Planning Checklist for 2020 The beginning of a new year is a great time to review your Exit Planning Checklist. All business owners will stop being business owners at some point. So, there is no better time to begin planning for the inevitable than … Read More » Baby Boomers' Influence - Still Strong There is ample evidence in the marketplace that Baby Boomers’ influence is still powerful. From walk-in tubs to stand-up bikes, and from pharmaceutical commercials to river cruises, Boomer tastes are catered to in every market. We all know the sterotypes … Read More » Why Plan Now? Exit Planning for Small Business Owners ask all the time, “Why Plan Now?” “I’m not planning to leave my business for years. I feel good, and I still enjoy my business. I’m not sure what else I would do. Besides, if my company is only … Read More » Selling to Employees: Exit Planning for Small Business Part 4 Selling to employees is one method of transition that is growing rapidly in popularity. Usually the driving motivation is a desire to help the people who got you this far enjoy some of the benefits of ownership, but there is … Read More » Family Succession: Exiting a Small Business Part 3 It’s time to discuss family succession. In Part One of this series we looked at exit strategies that aren’t really available to small businesses, and in Part Two we discussed selling to a third party. Now let’s talk about the … Read More » Exiting a Small Business #2 - Selling to a Third Party “In our last episode,” (I’ve always wanted to say that) we discussed the exit paths that are not usually available when exiting a small busineses. Those are ESOP, Private Equity and Strategic Acquisition. Now let’s talk about what you can … Read More » Exiting a Small Business Part 1 Owners who are exiting a small business are often stymied by the range of choices in exit planning. Most literature on the topic discusses seven or eight avenues to exit. A sale to a third party can be to an … Read More » Using Waterfalls in Exit Planning One of the most useful concepts in business planning is that of “waterfalls.” The analogy is apt, if perhaps less than perfect. Think of any outcome anticipated in a contract that is based on an “if…then” situation. It can likely … Read More » Video on Preparing for Your Exit Plan I contributed this video interview to SuccessionMatching.com for their recent Summit. It is about the preparation you need to do before starting an actual planning process. Succession Matching has made it available for free for another week. (requires creating a … Read More » Podcast on Exit Planning ChoicesI had a nice conversation last week with Pat Ennis of Ennis Legacy Partners and Walter H. Deyhle of Gelman, Rosenberg and Freeman,CPAs, both in Maryland. Thanks for the invitation, Pat! You can listen (25 minutes) here.Read More » |