What is Exit Planning?
Simply put, exit planning is a designed plan to leave your business on your own terms.
It is one of the most important parts of your overall business plan…
…In fact, it could very easily be considered the most important part of your business plan.
One of the most important steps in exit planning is to have an understanding of the value range of your business and, more importantly, what you will net after the transaction is complete. We consider this the “most important” part of exit planning, so contact us for a review.
Planning for the sale of your business will help eliminate potential surprises. Waiting until the last minute to consider the sale of your business can be setting yourself up for an unpleasant surprise. Here are a few things to consider as an “Exit Planning Roadmap.”
Value Drivers For Your Business
Is there a defined, consistent process in place to deliver the goods or services? Are the operating processes documented?
Business Structure: If your company is a C-Corporation, you should consider changing the structure to an S-Corporation before the sale. Issues associated with “double taxation” can cause you to pay considerably more tax on the sale of assets owned by a C-Corporation.
Charitable Remainder Trusts: Donating all or a portion of your business to a charitable organization of your choice is another way of reducing the tax consequences associated with the sale of your business while helping out an organization that you want to support. This option can provide a good deal of flexibility in terms of residual income to you and potentially your heirs.
When Do I Start?
Exit Equity understands the importance of planning, value range, and net-to-you, with regard to the sale of your business. We would appreciate an opportunity to meet with you to get a good understanding of your requirements and to discuss various options to prepare for a transfer of ownership when you are ready.