Key Takeaways: Planning for a successful exit ensures that you will not be caught unaware when problems come up. We all have to exit our companies someday, but whether we do it well or poorly can be decided by some good planning.
A good exit plan starts with your objectives and can be adapted to changing economic, business and personal circumstances.
A good exit plan starts with your objectives and can be adapted to changing economic, business and personal circumstances.
Failure to plan can be the difference between liquidation and a successful sale to a third-party.
Key Elements of a plan:
- Plan Ahead
- Set Measurable Goals
- Incorporate Flexibility
Seven Step Exit Planning Process
- Setting Exit Objectives: Do you know your retirement goals and what it will take — in cash — to reach them?
- Determining Business Value: Do you know what your business is worth today, in cash?
- Increasing Business Value: Have you identified the best ways to increase your company’s value and cash flow?
- The Third-Party Sale: Do you know how to sell your business to a third party without having to pay exorbitant taxes?
- Transfer Your Business to Insiders: Do you know how to transfer your business to insiders (family members, co-owners, or employees) for cash, rather than give it away?
- Protect Your Business: Do you have a continuity plan for your business should you die or become disabled?
- Protect Your Family: Do you have a plan to secure your family’s financial security should you die or become disabled?
Conclusion
The thought and actions that go into answering these questions constitute your unique exit plan. For more information about how to begin answering each of the aforementioned questions affirmatively, contact us today.
For additional information regarding Florida business sales, acquisitions and valuations, please contact Eric J. Gall at Eric@EdisonAvenue.com or 239.738.6227. Also, visit our Edison Avenue website at www.EdisonAvenue.com. To search for Florida Businesses for Sale: CLICK HERE
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