An exit strategy is a written plan outlining the transfer of ownership of a business.  We recommend creating an exit strategy long before it becomes necessary. As a business owner, remember to keep your options open and be prepared, should your circumstances change. Consider this preemptive action plan an insurance policy of sorts.

Establishing an exit strategy does not mean you’re ready to sell your business; but when the time comes that you are ready, having a pre-established plan can help you get a return on the money and effort you have put into the business.

Here are a few steps to consider when establishing an exit strategy:

1. Establish and identify your goals.  It’s important to have a clear idea of what you hope to accomplish. How will your plan affect your future?  Your family?  Whom do you need to consult or notify regarding your intentions?   Do you want to maintain involvement in the business?
2. Get your business ready for your exit.  Organize your financial records and make sure procedures that have proven successful are in place. Document your current way of doing things.  Consider a process manual for your successor.
3. Assess the value of your business. Your next step is to determine the value of your business. What do you think the buyer is willing to pay? To better understand the worth of your business, consider consulting a business broker to get a guideline valuation.
4. Set an exit date. Having a target date of exit helps you plan ahead and ensure everything is in order for the sale or transfer of your company. Some people set their target date based on life events such as the birth of a child or grandchild, the current financial market, or reaching a specific business-related goal.  Some choose to stay linked to the business until they are financially secure enough to leave.

If the process seems a little overwhelming to you, you are not alone.  Having someone there to guide you through the planning and execution phases can help you achieve the clarity and confidence you need to move forward.  Our Certified Exit Planning Advisor will work with you and your advisory team to create a comprehensive exit strategy in writing, that can be updated in the future as your business grows and changes. We work with your financial planner, tax accountants and if necessary, lawyers, to ensure that you are leaving the legacy that you envision.

To start the process of establishing an exit strategy for your business, contact a licensed business broker from The Liberty Group of Nevada, Inc., today, click the link:  https://www.thelibertygroupofnevada.com/contact/

Sources:

Exchange Marketplace: www.exchangemarketplace.com/blog/exit-strategy

The Liberty Group of Nevada: https://www.thelibertygroupofnevada.com