Do You Have a business exit plan?
Chances are when you started or bought your business you did it for a number of reasons. You wanted to control your own destiny, provide a product or service that people need, and you hoped to earn a living based solely on your skills and efforts. Chances are also good that you didn’t really think much about getting out of the business.
Sooner or later all small businesses change ownership. Failing to plan for this eventual exit could cost you dearly. As you manage your business on a day to day basis you will be focused on several goals. You will want to increase revenue and profit. You will want to decrease expenses and taxes. Some of these decisions can radically affect the value of your business. Additionally these same decisions can make your business easier to sell or nearly impossible to sell.
Your Business Exit Plan must be personal and tailored to your specific business. It may consider your age and health. It may involve other family members that work in the business. It should consider the industry outlook for your particular business. Debt and taxes must be considered in a good exit plan.
The goal of the Exit Plan should be maximize the value of your business while minimizing the obstacles to a sale. We know that buyers and bankers will want to look at a three year history of the operation. If you are thinking of selling at any time in the next five years, you should be seriously planning your exit NOW! Call us today for a confidential discussion. We will tell you how the business would look in today’s market. Hopefully we can identify specific steps you can take to maximize value and minimize obstacles. There is never a charge for an initial consultation.
