A Trusty Handbook For Exit Planning
Exit planning is one of the most important steps a business owner can take to protect the value they have built, prepare for the future, and create a smooth transition when the time comes to sell, transfer, or step away from the business.
Whether you plan to:
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Sell to a third-party buyer.
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Transition the business to family.
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Transfer ownership to employees.
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Bring in partners.
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Or prepare for retirement.
A well-structured exit plan can help you make informed decisions, reduce risk, increase business value, and improve the likelihood of a successful outcome.
This handbook provides key steps and considerations to help business owners understand the exit planning process and begin preparing their business, finances, and future goals with confidence. Complete the form to receive your complimentary handbook to navigate the exit process.
How To Navigate Your Business Exit
Exiting from your business, regardless of the reason, is never easy. It can get quite messy and complicated, whether you plan to sell to a third-party buyer, transition the business to family, transfer ownership to employees, bring in partners, or prepare for retirement. That's why the team at LegalWise Business Brokers put together a guide to help you navigate the key steps of your business exit process. So you can prepare your business, finances, and future goals with confidence.
Your Guidebook Includes:
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The financial and advisory team you'll need in place early to prevent costly mistakes.
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A clear walkthrough on defining your personal and business goals to ensure clear desired outcomes.
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How to understand your business's current value.
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The seven value drivers and risk factors that could sabotage your exit.
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A clear path to building a value improvement plan.
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What exit strategies are available, and how to choose the right one.
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How to prepare your business for transition.
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What you need to do to implement your exit plan.
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Six preparations that are needed to help you get ready for life after the exit.
Answers To Your Questions
We often get asked quite a bit about navigating a business exit. So, our team at LegalWise Brokers compiled all these questions and picked the top four we get asked most!
What is my business actually worth?
This is almost always the first question owners ask, and it's not just a single number pulled from a formula.
Your business's value comes from several factors reviewed together:
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Your financial performance over the past three to five years.
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Your revenue and profit trends.
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How concentrated or diversified your customer base is.
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How dependent the business is on you personally and on your physical and intangible assets.
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Current market conditions.
In the Exit Planning handbook, we go over all of these factors in greater depth. We also cover something called the "value gap." This is the difference between what your business is worth today and what you actually need from it to exit successfully.
Getting a professional valuation early isn't just about a number; it's about finding that gap while there's still time to close it.
What are the risk factors that impact my business valuation?
There are five big risk factors that can dramatically damage your business valuation. Addressing them early in the exit planning process is crucial to maximizing your business's valuation when you are ready to leave.
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Owner dependency.
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Poor financial records.
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Customer concentration.
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Unresolved legal or compliance issues.
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Outdated systems.
When is the right time to exit my business?
Timing is absolutely critical when you're planning your business exit. Your timeline shapes everything. Exit planning is a multi-year process, not something started once you've already decided to sell. Starting early gives you time to fix critical things that will impact your business's value and the transition process.
What are my options for selling besides to an outside buyer?
A sale to a third party is only one of several paths you can take when exiting your business. We go over them in greater detail in the handbook, but here are a few options available.
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You can transfer the business to family.
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Facilitate a management or partner buyout.
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Transition ownership to employees.
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Merge with another company.
The right choice depends on your financial goals, your family and employee situation, and how much you care about your legacy.