Financial planning is essentials to maintaining your business for growth and improvements in services.
Exit planning is the preparation for the owner/entrepreneur to leave his company to maximize the enterprise value of the company sometimes in a mergers and acquisitions transaction and thus improve his shareholder value, although other non-financial objectives may be pursued including the transition of the company to the next generation, sale to employees or management, or other altruistic, non-financial objectives. Many company owners commonly do not see their company from the standpoint of a potential buyer, and thus, ignore the strategic management of the company.
Every business owner needs an exit plan. Some owners want to sell their business for a maximum profit and others want to keep the business in the family. In either case, an exit plan will allow the goal to be reached comprehensively and prudently. Business-owner exit planning should begin five to 10 years before the owner wants to retire or pass his business to a younger generation.
The Business Enterprise Institute has identified seven steps that businesses and owners need to go through to complete an exit plan. The owner needs to consider what kind of retirement income he wants to have and who he would like to have run the business once he retires. Once the identified objectives are defined, the business owner needs to take an inventory of his personal assets and get a business valuation performed. Once the business is valued, there may be a need to find strategies to maximize and grow the business' value.
Once the first three steps have been completed, the business owner will then need to choose between transferring ownership to a third party, such as a competitor, or to insiders, such as his management team. A solid exit strategy will be needed; the business will need to update the business continuity plan to reflect the upcoming change in ownership. The final step for the owner will be to finish personal estate and wealth-planning strategies.
These steps are designed to comprehensively address all of the concerns and issues that will arise during the exit of a privately owned business.
In order to process and exit plan fully you will need expert advisors:
Jonathan Robbins Inc. can provide all the necessary service for exit planning without the need for the business owner to hire other services.
Most companies need more than just an accoutant. They need a business advisor that understands the ins and outs of most complex financial aspects of business with an understanding of tax law, and how it applies; someone to provide strategic guidance.