Business exit planning is absolutely essential to selling a business and here is the simple reason why: it increases the value of your business…as much as 50%! If your interest is piqued, read on.
Everyone benefits from business exit planning strategies. Here’s who and why:
Employees will be protected; something every business owner worries about. Although exit planning should probably be called something different to keep employees from speculating; “succession” or “emergency” procedures perhaps, employees will take comfort knowing there’s a plan for their jobs and their employer in case there’s a catastrophic event or a sudden ownership change. Just like when someone finalizes their will or estate planning for their personal affairs, all employees can breathe easier knowing things will run smoothly if the unforeseen occurs.
The Exiting Owner
The exiting owner will be thoroughly prepared to maximize their sale opportunity: 1) Business exit planning helps prioritize reasonable goals for the business before a leadership change and then explores strategies and tactics to help achieve them; 2) Having a business exit plan in place makes a statement about a business. Buyers will take the company seriously. They will buy quicker and pay more for a business that has it’s proverbial “ducks in a row” than on that does not; 3) A business exit plan financially prepares an owner. The sale of a business can cause a significant increase to one’s liquid assets. Properly conducted business exit planning strategies include analyzing the financial effects of the business sale and how it will affect one’s income, capital gains, estate and gift taxes.
The Prospective Buyers
Prospective buyers will look favorably on a business that takes the time to plan ahead. It makes them feel more secure about their investment and suggests that any ownership change within the business would transition smoothly. Although a business exit planning will benefit the owner and the employees (as noted above), for a buyer, the plan can also serve as business audit and review. Buyers will be able to see clearly where a company stands, what they are working on and what the plans are for the future. Your business will stand-out from the others as an independent and fully-capable business operation.
Cost & What’s Included
Business Exit Planning completed by American Fortune Business Sale Advisers take one to three weeks. Owners will work closely with a business adviser throughout the entire report process and should be prepared to share any/all pertinent business information. Our goal is to provide owners with a complete report that covers all aspects of their business. Typically, the Business Sale Con will focus and report on at least the following six areas:
- Management team
- Systems and procedures
- Customers and suppliers
- Facilities and equipment
- Financial discipline
- Growth strategies
Exit planning completed by American Fortune Business Sale Consultants vary in length depending on the size of the company and the plan chosen. All reports, however, will include:
- Recommendations to preserve and increase business market value while preparing a business for sale
- Business exit planning strategies and suggestions for transferring business to new owner
- Contingency exit planning and succession planning to address unforeseen or catastrophic events
- Comprehensive review of and suggestions for owners’ financial circumstances post-sale. This includes information on tax implications, estate planning, capital gains and more.
American Fortune Offers Two Exit Planning Programs
The two programs for exit planning and succession planning development offer options for basic or extensive review an exit planning. Each of these plans help in raising business values, reduce risks and maximize its opportunities for stability and growth.
The Basic Exit strategy and Succession Plan
e on the opportunities. This basic plan is very helpful to business owners who want to prepare their business for the unexpected and unpredictable catastrophic life events such as divorce, illness, disability, and death. These issues usually puts a business, its owners, and their families in extremely dire situations. The results are a decline in business and decline of business value.
This plan identifies and addresses key operational or structural issues within the business. The plan includes recommendations on resolving these issues and preserving and increasing the company’s viability and market value. This exit plan and succession plan consists of a report which documents the review of the business with short and long-term recommendations for preserving, improving the business’s performance increasing its value.
This report will specifically address:
- Tax matters
- Operational issues
- Organization and its structure
- Supplier stability
- Industry and competitive analysis
- Profit & Loss adjustments
- Customer concentration
The price for this plan is: $6,500
Comprehensive Exit Strategy and Succession Plan
The comprehensive exit strategy and succession plan encompasses a full and comprehensive array of reviews, analysis and recommendations for preserving and increasing the business’s value and capitalizing on its strengths and opportunities. The comprehensive plan includes a variety of advisory services and plan implementation and professional support. Inclusive of this plan is a thorough review and value analysis as well as the company’s Strengths, Weaknesses, Opportunities and Threats. The business owner receives an extensive report with short and long-term recommendations to preserve and increase the value of the business and well a protective measures against unexpected events.
This plan also includes the development of a strategy for selling business the business in the future or the transfer could be to a family member. The comprehensive plan is ideal for planning the sale of a business and preparing for life’s unexpected disasters.
This plan addresses the following matters:
- In depth review and analysis of all the parts of the business
- Tax reduction planning
- Operational planning
- Organizational structure review and recommendations
- Supplier review and product flow protection
- Industry and competitive analysis
- Review of financial reporting and recommendations
- Customer concentration review and recommendations
- Industry analysis and planning
- Additional items which can impact the market value of the business
The price for this plan is: $10,000
Clients utilized American Fortune Business Sale Advisers to prepare business exit planning strategies for their businesses in the following areas of the USA: Columbus Ohio, Atlanta Georgia, Lexington Kentucky, Bowling Green Kentucky, Nashville Tennessee, Memphis Tennessee, Cincinnati Ohio, Dayton Ohio,Toledo Ohio, Los Angeles, Cleveland Ohio, Pittsburgh Pennsylvania, Baltimore, Maryland, Indianapolis Indiana, Chicago Illinois, Detroit Michigan, Flint Michigan, Tampa Florida, St. Louis Missouri, Kansas City Kansas, Des Moines Iowa, Minneapolis Minnesota, Louisville Kentucky, Oklahoma City, Oklahoma, Dallas Texas, Fort Worth Texas, Denver Colorado, San Francisco California, Salt Lake City Utah, Phoenix Arizona, Lexington Kentucky, Los Angeles California, San Diego California. Our corporate offices are located in Los Angeles, California, Louisville, and Kentucky.
American Fortune Business Sale Consultants, a subsidiary of American Fortune Mergers & Acquisitions, is a consulting firm for business owners selling their businesses.
Learn about preperation to sell a business . Or learn about best practices to sell a business.