Establish Your Objectives
No two entrepreneurs are alike. The objectives for leaving a business are as varied as they are for starting one. The first step in exit planning is pinpointing your specific goals and motivations. Why and when do you want to leave the business? Do you want to sell the business to an unrelated party or transfer it to employees or children? What are your post-sale plans and how much money will you need to achieve these future goals? There are no right or wrong answers – just your answers – which are key to devising a strategic plan tailored to meet your unique aspirations, circumstances and principles.
Quantify Your Resources
How do you measure years of devotion, dedication and sacrifice? By first recognizing that your opinion is likely biased, and then obtaining an independent assessment of your company. We put pen to paper and calculate the value of your business based on its assets, operating costs, income, free cash flow, tax obligations, debt structure and the realities of the marketplace. This objective business valuation is viewed side by side with your personal assets and financial resources along with the income they generate to obtain a complete picture of your current wealth and earnings.
Upon the completion of Steps One and Two, you should have a clear picture as to what you have, what you need, and what you want as well as the proper foundation for the following five steps.