EXIT PLANNING – Begin with the End in Mind.
This advice is equally relevant for a business in the startup phase of the business life cycle as well as for the mature business approaching an ownership transition point.
Why Many Business Owners are Unhappy Following an Exit
Studies indicate that 75% of business owners who have exited their businesses are profoundly unhappy within one year following the exit. Why is that? A few reasons have emerged, including:
- The company was undervalued, leaving hard-earned wealth on the table
- The seller paid too much in capital gain or estate taxes
- The seller failed to realize their personal, financial, or business goals during the process.
Develop a Succession Plan Before You are Ready to Exit Your Business
Our message to business owners is simple: Don’t be another unhappy statistic. Begin today to develop that plan for your inevitable exit, keeping the end in mind. To effectively accomplish this requires a vision that is cohesively integrated with planning that leaves both you and your business on sound footing. To avoid seller remorse, the owner needs a clear vision of life post-ownership, and a plan to make that vision a reality. For peace of both mind and conscience, the plan must integrate the needs of all the stakeholders that are ultimately impacted by this process, both family members and business associates/employees. Keeping an eye on the plan will provide necessary focus so that the owner and the company are both ready whenever that exit point arrives, be it planned or unplanned.
Our Exit Planning Advisor Group understands the wide array of issues that must be addressed in an effective exit plan for a private business owner. We employ a process that identifies and addresses the many decision points in a structured, measurable format. Call us at 630-420-1360 to learn more about how we can help you plan for the future.