Timing

is everything.

Exiting your business is unavoidable, but you can shape the outcome with proper planning.

Do you have an exit plan?

There is a myriad of reasons for deciding to sell your business — from retirement, to a new business opportunity, to an unsolicited offer. Whatever your reason for selling, it’s important to realize that effective exit planning should begin years in advance of the sale.

Today’s challenges and opportunities always seem more urgent than future planning, so exit planning often gets put in what we call the Junk Drawer, to be dealt with later. Unfortunately, this often results in neglect until just before the sale and more often than not, leads to selling under less-than-ideal conditions.

Procrastinating

on planning the sale of a business = losing control over the outcome

We bring it all together.

Like a project manager, we are the cohesive force that unites everyone, ensuring alignment and a shared direction towards our common goal. Effective collaboration among a team of professional advisors is crucial in exit planning, as no single professional can address all the intricate issues that business owners face during one of the most significant transitions of their lives.

We are the consistent team that stands by you before, during, and after the sale, setting up the strategies to save you potentially hundreds of thousands of dollars in taxes while maximizing the value of your busienss.

What we do.

It can often take up to 5 years to prepare a business for sale to optimize value, implement tax strategies, negotiate, and sell. We specialize in helping business owners navigate the complex process of exiting their business.

Our expertise is not just in preparing the business for sale, but also in ensuring that the transition aligns with the owner’s personal and financial goals.

We take our clients from the beginning of exit planning through to after the sale of the business, bringing in all the resources needed to make a smooth transiton.

Quarterbacking

Acting as the central coordinator, or “quarterback,” of the entire exit planning team, ensuring all aspects of the plan are integrated and executed effectively.

Retirement Planning

A meticulously crafted financial and tax plan is the cornerstone of a seamless business transition. By integrating comprehensive financial strategies with the business valuation process, the owner can ensure determine a secure and sustainable future based on the sale’s proceeds and terms.

Professional Investment Management

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Tax Efficiency

Implementation of strategies to minimize tax liabilities, potentially saving business owners significant amounts of money.

Optimizing Business Structures

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Risk Management

From employee retention strategies to

Many people wait too long before starting to plan the sale.

Our Process

In the dynamic world of business, the journey towards an exit is a significant milestone that demands careful planning and foresight. Preparing yourself and your business for this transition is an essential one that can profoundly impact your success and legacy. Whether you're aiming to sell your business or pass on the reins, a well-prepared exit strategy ensures a smooth transition, mitigates potential challenges, and maximizes the value of your hard work.

Before the Sale

1

Prepration for a sale happens years prior to the actual transaction. There are a number of items business owners should consider when preparing their organization for a sale. The most common factors to review and analyze are: shareholder/tax planning opportunities, the management team, the risk mitigation, structure of the company, the timing of the sale and cash flow.

Collaboration & Planning

2

We help assess & assemble the team. It is imperative to assemble a unified team of professionals well before a sale process begins.

Without a cohesive team, business owners may not get comprehensive advice and fail to properly plan for tax mitigation, wealth preservation, and business value protection. However, when exit planning professionals work together, they seize opportunities and avert potential pitfalls.

During the sale

3

Without active collaboration, an investment is a gamble, insurance can be overbought, and goals not achieved. Financial decisions made in isolation disregard the influencing factors of taxation, economic environment, regulatory changes, debt, and goals.

Which is why you can work with your accountant, lawyer, etc to help guide a strategy that not only looks good on paper but can withstand the realities of the real world.

After the sale

4

The whole point to all the work What is a legacy? Your personal wealth? Your family’s wealth? The brand image and reputation you’ve built? The lifestyles and careers of your children or other successors?

Preserving the estate for continued. Successs. Just like your busiensss, you can't just put up a sign adn expect it all to work out. Your hard earned money proceeds, your legacy need to managed.

Case study

Samantha, age 40, and Joe, age 45, each own 50% of their incorporated business, which has been appraised at $3 million. There was no formal buy-sell agreement in place and after an analysis it was determined that there was a significant risk to the continuation of the business in the event of one owner passing and the increased risk of lenders calling in loans.

The loss of an owner or key person can significantly impact the profitability, stability, and progress of the business. During the disruption, creditors may lose confidence in the business and call loans. In addition, it may be hard to obtain financing to purchase the shares from the deceased’s surviving spouse.

Solution for Business

- - A legally binding Buy-Sell agreement was implemented that clearly stipulated the buy out clauses on how each partner’s share of the business may be reassigned upon death, disability, marital breakdown, and retirement.
  - The corporation owns, paid for, and was the beneficiary of a $500,000 Whole Life and $2 million term insurance policy on Samantha and Joe, paid over 20 years. Each Whole Life insurance policy had a death benefit as well as a growing cash value.

End result for the client:

- - If either were to pass away during their working career, the $1.5 million death benefit can be used to buy the shares from the widow of the deceased. The remaining $500,000 death benefit would be used to help satisfy loans that may be called or help find a replacement for vital role that the deceased had within the company.
  - Upon retirement, the cash value inside the insurance policy can be used to fund retirement at not additional cost to the business.

View more case studies

When should you start planning for an exit?

The answer depends on what you expect from your exit.

If you’re planning on passing the company to a child, 10 years is a good timeline to plan for other sources of income in retirement.

If you are looking at an IPO, plan around growth of $1m to $100m in 7-10 years (so you have a shot at an IPO).

If you’re hoping to get acquired by a larger company, be certain your IP is secured and your financials are in order (3 years out is ideal for best EBITDA).

When selling your business, there is more than the purchase price to consider; the real bottom line is the after-tax funds you retain after the sale. Tax planning ahead of time may offer you more flexibility in negotiating the terms of the sale and still end up with the same after-tax cash you expected.

Entreprenur’s Toolkit

Are you actually ready to sell your business?

Five crucial things to ponder when selling your business. These considerations will ensure well-informed decisions that benefit you, your employees, and the future owners of the business.

Checklist for preparing for a sale of business

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4 Financial Ratios to focus on before selling

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4 types of financial ratios to assess your business performance

less formal
Is your business as good as you think? Checking out your financial ratios before selling can give you a clear picture of what’s working and what needs a little TLC. This way, you can make improvements and get top dollar for your business.

Are you actually prepared to sell your business?

In this blog post, we’ll explore five more important questions to consider when selling your business. These questions will help you make informed decisions that benefit you, your employees, and the business’ future owners.