Why Exit Planning is Important for Business Owners
An exit plan is a comprehensive road map that helps business owners successfully and profitably exit
a privately held business. An exit plan asks and answers all of the critical questions that a
business owner and his or her advisors must consider.
Importantly, 75% of former business owners report they regretted selling their
business because it did not accomplish their personal or business objectives. Why?
Owners admit themselves that they did not understand all of their options,
were not able to make informed decisions, and did not know who the comprehensive expert(s) was
to turn to.
Unfortunately, too many business owners do not have any idea how or when they
will exit their business. As a result, most business owners are:
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reactive rather than proactive
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miss strategic opportunities
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undervalue their companies
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leave hard-earned wealth on the table
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pay too much in taxes when they sell their companies
A good exit plan includes contingencies for illness, burnout, divorce, and even
the owner’s death.
A well-developed exit plan shows a business owner how to maximize the value of
the business, minimize taxes, and ensure that he/she is able to accomplish all personal and
financial objectives in the process.
A comprehensive and integrated exit plan empowers business owners with crucial
information needed to make informed decisions, tools to maximize closing after-tax proceeds, and
ensures successful fulfillment of all personal and business goals.
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