Other CEOs Plan Their Exit. Why Don't You?
I know that you don't like to plan or even the thought of planning. I am pretty sure you hate to plan vacations, plan your finances and I am guessing you still need to update your business plan. But would you make the effort to plan if you knew you would be able to sell your business on your terms when you are ready or transfer your business to family with the least amount of taxes? Have you even thought about the options for your business for when you are ready to retire or move on to something else? Remember, everyone exits their business at some time, it's just a question of when and how!
If you have kept up with our newsletters, you would know that determining the best exit strategies and planning your exit, whether it be in ten years or next year, will put you in a position to finally convert your sweat equity into something your family can use. In addition, when we work with you to determine your best end point, we can best help you figure out the way to minimize taxes and exit on the best terms. While some changes can be made right before a possible sale, plans implemented 2-3 years in advance create the best results. What happens if someone unexpectedly wants to buy you? What happens if something happens to you and your family or managers have to run the business? Will you wish you had planned your exit?
While it is possible to do an exit plan internally, bias, emotion, lack of initiative and a lack of experience generally make them ineffective. In an article recently about Orion Capital Group in Entrepreneur Magazine, the author highlighted how we have invested a significant amount of time and capital in becoming an authority on coaching businesses to increase their value, reduce taxes as a result of the transaction, and give the sale the highest chance possible if selling to a third-party.
Approximately 80% of private businesses will change hands in the next ten years because of the large retiring baby boomer population and so you will need to find a way to differentiate your business from the others whether you wish to get acquired or stay ahead of those doing the acquisitions. If you don't prepare and plan for the biggest transaction of your life, there is a good chance that you and your family might miss out on significant lost opportunity cost. Send us an email and I believe you will see the value like some of our other clients.