Let’s face it, when you reach the point of your career as a business owner and becomes time to start planning your exit, you will ultimately want to exit your business by either selling it to company insiders, family, or to a third party, for the highest possible price, in the most tax efficient manner, and on your terms.

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.

There are many critical areas that need to be addressed by the owner of a business when preparing their company for a successful sale to a third party. What defines a successful exit? Being able to exit their business for their desired amount or higher, being able to exit on their terms, and do so in the most tax-efficient manner.

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.