Like any strategic plan, it can be difficult to know how and where to begin strategically planning for your exit. To help you along, the following is a baseline "2022 Exit Action List" meant to serve you in planning for that most significant event as a business owner...your future exit.
DECIDE WHERE YOU WANT TO GO. Establish Clear Goals and Objectives for Exit and Your Life After Exit.
When do you want to leave the business? Whom do you wish to transfer/sell the business to?
What are your values-based and legacy exit goals?
What is your post-exit "life-plan"? Business owners can often regret leaving when lacking a plan for life that replaces the sense of purpose and meaning they experienced in building their business.
Update your Personal Financial Plan. Find out how much $$$$ you will need post-exit to do all you want to do. Is there a gap?
ASSESS WHERE YOU ARE. Without Accurate Data All Planning Becomes Meaningless.
Get an accurate Estimate of Business Value. If the business is your largest asset, shouldn't you know what it really is worth to potential buyers?
Assess your business Value-Drivers and areas of Risk.
Review your Business Continuity Plan for life transitions and unexpected death or disability to include written instructions. Co-Owners should include a review of their Buy-Sell Agreement to ensure alignment with the current goals of all owners.
Review your Estate Plan to ensure alignment with exit goals.
DESIGN AND IMPLEMENT A PLAN. Build Transferable Value and Enjoy a Future Exit on Your Own Terms and Conditions.
Which Exit Route will best accomplish your goals? Sale to Third-Party | Sale to Insiders | Transfer to Family Members | Sale to ESOP | Absentee Owner.
Focus on growth and profitability today. At the core of tomorrow's successful exit plan is today's profitability and plan for growth.
Strengthen business value drivers. An owner with a sellable business will have more freedom in life and options for exit.
Update a strategic financial plan for business growth.
Do you have the right Team of Experienced Advisors in place for your plan design and implementation?
Who will Manage the Exit Planning Project? You, a current Advisor, or an experienced Exit Planner?
The most important thing you could do in 2022 would be to GET STARTED AND GET HELP if you have yet to do so. If you wait until “you're ready to exit” to begin planning, you won't be ready, and neither will your business. Keep in mind, that "You don't know what you don't know" and like in all other areas of life, that could end up being disastrous.
There is much at stake during this most significant event in your life as a business owner. Take steps in 2022 to be as successful in planning your eventual exit as you have been in running your business.
Following are some easy Next Steps:
Contact Us Today for a No-Obligation Exit Planning Exploratory Meeting.
Take the Free ExitMap Readiness Assessment and get Online Learning and Resources at exitreadiness.com.