Jul 07, 2022
In General Discussion
The Exit Plan becomes a written roadmap that Job Function Email List is developed in conjunction with legal, accounting, and financial professionals and is designed to maximize Job Function Email List the value an owner receives when exiting the business. Exit planning can be a fairly complex long-term process and take many years to properly Job Function Email List implement. The process can be broken down into succinct action items and deliverables and should illustrate how value can be received at a very early stage. A professional team will bring efficiency to the process by implementing Job Function Email List a basic structure of steps to be followed, and can insure that the experience will be a personally gratifying and financially rewarding endeavor Job Function Email List for the owner. The key steps involved in developing an Exit Plan include: 1. Establishing Exit Objectives • Determining the retirement timetable, long term income needs, and financial requirements necessary to reach them. Job Function Email List 2. Identify the key drivers of business value • What is the fair market value of the business if it were sold today? 3. Plan to build & preserve business value and reduce Job Function Email List risks • Activities that can be implemented to leverage best practices and maximize the business value. Transfer of ownership, management, & control • Determine the anticipated buyer (outside 3rd party, key employee, family member) and develop Job Function Email List the structure for ownership transfer that maximizes financial security while minimizing taxes. 5. Contingency Planning • Protect the continuity of business operations should an unexpected event occur. 6. Wealth Job Function Email List management/preservation • Secure financial independence by developing a financial plan to manage the income from the business sale. Job Function Email List 7. Successful Exit While nearly all business owners will recognize the importance of having a formalized exit and succession strategy for their future and the future of their company, very few actually have a plan in place.