Category: Business Exit Planning

Business Exit Planning

How a Business Owner Can Utilize an ESOP to Exit Their Business 

One of the more challenging steps for a Business Owner in planning their exit is determining the best option for selling their business, which is often based on their personal situation, goals for the company, employees, and family members. However, one of the more tax-efficient strategies and options for the sale of the business is the Owner selling to an ESOP or an Employee Stock Ownership Plan. An ESOP is a tax-qualified retirement plan (profit sharing and/or money-purchase plan) that…

Business Exit Planning

How Business Owners Can Increase Value in An Economic Downturn 

Economic downturns can be stressful for business owners. It’s great riding the waves of increased business revenue and profit during economic upswings, but being prepared for downturns are just as important, if not more, for a few reasons: The first is that you want your business to be able to weather the storm and survive with minimal sacrifices and while not becoming more vulnerable to competition. The second is that during a downturn your business can become “leaner and meaner”…

Business Exit Planning

When is the Right Time to Get a Valuation of Your Business in Planning Your Exit? 

As I have mentioned many times before when writing articles on business exit planning, doing a proper exit plan takes time and usually requires a methodical process. Over the years, I have developed an exit planning process that was manifested out of the knowledge of a comprehensive financial planning process, and what I have learned over many years of being a member of the Business Enterprise Institute.

Business Exit Planning

The Business Owner Will Exit Their Business, One Way or Another 

When discussing business exit planning, there are some interesting statistics: 100% of business owners will leave their businesses, whether planned or otherwise; 79% pf business owners plan to exit their businesses in the next 10 years or less; 80% of owners believe that a successful exit will result from planning and action items they implement. But here is the catch – only 17% of owners have created a written plan… and often it takes 3 to 5 years to develop one.

Business Exit Planning

Utilizing a NING Trust as Part of a Business Exit Strategy 

The commonly stated goals of exit planning for a business owner is to exit their business on their terms, for the highest possible value (Or their desired value), in the most tax efficient manner. It takes time to implement the process to accommodate those objectives. When a business owner rushes to sell their business, many things can be overlooked including how to set up the exiting transaction in a way that minimizes taxation.

Business Exit Planning

Protect Your Business with a Solid Continuity Plan 

Protect Your Business with A Solid Continuity Plan A great characteristic of successful business owners is that they are optimistic people. They have a “can do” attitude, setting their goals high, taking risks, hiring the right people, constantly striving to improve the delivery of their service or product, with a constant drive to build their entity into one of great significance. As a result, the experience of building a successful company may give the owner great pride of their achievements,…

Business Exit Planning

Build a Successful Business Exit Plan by Using a Planning Process 

As a business owner, planning the exit from ownership of your business is probably the single most important decision you will make.  When to exit, how much to walk away with, who to sell it to, what’s the most tax efficient strategy in your circumstance, what timeline is most suitable, and what are the areas of business that need to be improved upon to make it marketable, etc.?  Those are just some of the things that need to be considered….