What’s your plan for exiting your business?
The amount of money you ultimately earn from your business depends in large part on the manner of your exit. So, too, does the chance your business will survive into the next generation. Recent studies show that 66 percent of the current American business market is owned by Baby Boomers who intend to transition out of their businesses within ten years. Unfortunately, statistics also show that only 20 percent to 30 percent of businesses that go to market actually sell. This means that up to 80 percent of these business owners lack solid options to harvest their wealth and ensure economic continuity into the next generation.
The fact is that an owner who has prepared in advance to make a business attractive to buyers greatly increases the odds that the business will survive a transition of hands—and that the owner will garner the maximum possible return on his or her investment in capital, time and “sweat.”
What factors should you consider in exiting your business? While every situation is unique, effective succession plans typically address several key issues:
Fundamental objectives.
The date of your exit, the income you’ll need for financial security, and the person, people or entity you want to take over the business should all be identified well in advance.
The value and cash flow of your business.
How much is your business currently worth and how much income will it generate after you leave?
Enhancing the value of your business.
This involves finding ways to make your business worth as much as possible before you pass it on or try to sell it.
To whom will you transfer the business?
Do you want to transfer your business to family members, co-owners or employees, or sell it outright to a third party? Either way, you’ll want to maximize the return on your initial investment, minimize tax liability and ensure a comfortable retirement.
What happens to your business and family if something happens to you?
If you become incapacitated or pass away suddenly, will your business be able to survive and will your family be financially secure?
Our approach to exit planning—create value now.
We believe that exit planning is not simply about the plan itself. Rather, it is a strategy rooted in execution that grows value while expanding options so that an owner can transition the business on his or her terms when ready. Our approach to exit planning aligns the business, personal, and financial needs of the owner.
As a Member of the Board of the Exit Planning Institute, Orange County Chapter, attorney Christine Weiner educates her clients on all of the exit options available. She collaborates with a seasoned, multi-disciplinary team of professionals to provide the array of specialized services and expertise necessary for the business owner’s transition to succeed.
The Value Acceleration Methodology™ is part of Christine’s strategic exit planning framework. It is a value management system that makes the timing of your exit irrelevant. The focus is on what you can do right now to grow the value of the business and drive income, while at the same time incorporating your personal and financial objectives into the framework. This approach will give you many options to exit the business on your timeline and terms.
Contact us today for a consultation to discuss your particular needs and goals. We welcome the opportunity to meet you in person.
