Exit Strategy Consulting
The purpose of this service is to provide the business owner with an accurate assessment of the current state of the business, some challenges likely to be faced, and recommendations to improve business performance in order to achieve the owner’s personal goals for a future sale. The work is performed by a team of subject matter experts, under the leadership of a ProAdvisors business broker. Cost is nominal.
There are 75 million “Baby Boomers” in the U.S., with the oldest turning 65 at the rate of 10,000 per day, a trend that will continue for the next 15 years. 25% of BB business owners have not done any estate planning. 75% do not have an Exit Plan.
The options are, realistically, few. Owners can:
Keep the business into retirement years,
Bleed the company on daily basis, then close the doors if competent leadership is not in place after retirement, or…
Sell Business to a qualified buyer and have financial stability for future retirement and heirs.
Obviously, the last choice is the best one to achieve the best return on investment and life’s work. When is the right time to develop an exit plan? ASAP! The Exit Planning Institute has projected that, with the rate of Baby Boomers retiring, 50% of the privately-held businesses could be sold. With that “tidal wave” there could soon be more businesses for sale than qualified buyers – the reverse of the current situation. What will be the effect on business pricing?
What does an exit plan consist of? It is written goals for succession of business ownership and control that “dovetails” with personal goals of the owners. It is an action plan to ensure that financial goals are timed in order to fund the owners’ future lifestyle. It provides for an integrated approach that addresses ALL of the business, personal, legal, financial, tax and insurance issues involved.