1. Set your Exit Goals
a. When do you want to leave?
b. How much money you need for financial independence?
c. To whom you want to transfer the business?
2. Create an Exit Plan. Create a team of trusted advisors and put your plan in writing. Your team should include your attorney, estate planner, and accountant. In addition, an M&A professional and/or family business consultant is essential to coordinate the team, provide expertise and to manage the soft issues that can derail your plan. Soft issues include choosing a successor, distributing the wealth fairly if not equally and having a post retirement lifestyle plan.
3. Build on the Value you have created. What makes your business salable and valuable? You must make the business an investment that has inherent value and is more than just you.
4. Develop a Contingency Plan. While you are preparing the business for sale if you die or become disabled or have a business setback your plans will be for nought. Have a specific plan to manage these risks including life and disability insurance and a management contingency plan.
5. Parallel Plan your Business Sale with your Estate Plan. We get to pick two of three choices to leave our money to (if we don’t spend it first) – Our family, charity and Uncle Sam. Planning ahead will provide you with choices and minimize income and estate taxes.
Ed–this is great! I really like the format. Hope all is well –Rich
Rich,
I have used the SuccessCare Discovery Questionnaire twice in the last month. Sunday I have a presentation scheduled. How is it working for you? I find it to be a very productive tool.
Congratulations on “discovering” the power of the Discovery Questionnaire. It gives everyone in the family a voice – even those who don’t work in the business. It helps the family identify their own needs which is much more meaningful than the advisor telling them what they “should” do.