Planning For Exit
Exit Strategy and Planning
Discover why some companies sell for more than others.
- What you need to do early on to create your exit plan
- The similarities between exit strategies and managing a good business
- What you need to do to attract a buyer – and what buyers look for
- How to determine what matters to you as you sell your business
- How to sell your business for the largest amount
- What due diligence consists of and how to make it easy for yourself
Most business owners are so caught up in the day to day tasks of operating their business that they rarely stop to consider their exit strategy. Here’s what you should be doing, even if you don’t envision yourself selling your business anytime soon.
Many business owners with an exit plan in place still won’t exit until at least three – and possibly as many as ten – years later, when they’ve implemented everything that must be in place to successfully sell the business. If you have yet to start working on your business’s exit strategy, you’re likely even further behind.
Set Goals You Can Actually Meet
When you create an exit plan, you need to hold your organisation accountable and examine your results. This is even more important when you want to continue to grow your business’s value while keeping your taxes low.
How To Create Your Exit Plan:
- Set Objectives for Your Exit: Determine your specific retirement goals – and how much cash you’re going to need in order to live the way you want to.
- Find Out What You’re Worth: Discover how much your business is currently worth, in cash.
- Increase the Value of Your Business: Look into what you can do to increase both your cash flow and your overall value.
- Prepare for Sale to a Third Party: Find out what you need to do in order to sell for the greatest value – and lowest taxes – possible.
- Give Your Business to Insiders: If you don’t want to sell to a third party, you will need to determine what you need to do to transfer your business in cash to others, such as co-owners, other employees, or your family.
- Create a Continuity Plan: Should you become die or become otherwise unable to work, is there currently a plan in place to keep your business operating?
- Create an Estate Plan: If you die or become unable to work as a result of injury or disability, do you have a plan in place to ensure you and your family’s financial safety?
Ask yourself these questions as you create a unique exit strategy for your business.
How does Employee Ownership compare with other succession options?