It is the job of the experienced Exit Planning advisor to ask you the right questions so that you decide where you are going, who is going to help you get there and the route you are going to take. Your answers help your advisors plan and implement the exit strategy that will best meet your goals. “My investment advisor suggested that I sell my company to an ESOP. Is that a good idea?” “My estate planning attorney recommended that I begin giving my business to my children. What do you think?” “I'm getting tired of running my business every day. My accountant thinks a sale to a third party is a good idea. What's your opinion? ” Sales to key employees, Employee Stock Ownership Plans, transfers to children and sales to third parties can all be excellent exit strategies so questions like these should elicit an “I-have-no-idea” response from your advisors. How can any professional know which particular exit path is best for you? Unless and until your advisors know more about your company and the exit goals you wish to achieve, they cannot possibly know which exit route is best. If they readily answer your questions, they may lack experience and/or a coordinated approach to helping their business-owner clients. It is the job of the experienced Exit Planning advisor to ask you the right questions so that you decide where you are going, who is going to help you get there and the route you are going to take. Your answers help your advisors plan and implement the exit strategy that will best meet your goals.
What advisor(s) do you need?Planning an exit is a multi-disciplinary endeavor. Protecting assets, growing value, transferring a business to children (or co-owners or employees), selling to a third party, and assuring business continuity are tasks that exceed the expertise of any one advisor. That’s why we recommend a Team of Advisors. Who should be on an Advisor Team?
An Advisor Team generally consists of the following professionals:
- Financial Planner/Wealth Manager
- Business Attorney
- CPA
- Estate Attorney
- Business Consultant (as needed)
If a 3rd party sale is likely, the Team will include a:
- Transaction Intermediary (Business Broker or Investment Banker)
- M&A Transaction Attorney
Do they all have to have Exit Planning experience?While that would be ideal, the answer is no. Not all advisors understand the Exit Planning Process and can tend to focus on their area of expertise, perhaps in isolation. That’s why we recommend you begin and complete your Exit Planning journey with two things: (1) A Road Map and; (2) An Experienced Guide.
Assembling your Advisor Team, whose activities are coordinated by an experienced guide, promotes clarity about and integration of your objectives into the process (and the outcome), facilitates the exchange of information and ideas, keeps the process on track and allows you to stay focused on preserving (and growing) the value of the business you’re trying to exit. Instead of advisors proceeding in a disjointed manner, requiring you to serve at the project manager (of project you may not be all that familiar with), your lead Exit Planning advisor coordinates the efforts of all advisors, ensures you are informed, consulted with and that your feedback is incorporated – allowing you to stay focused on preserving the value of the business throughout the process .
How do you find Team members?Many business owners are familiar with many of these professionals and have worked with them individually in the past, but have not assembled them as a team charged with a common goal: helping you to leave your business in style. We can help you start to assemble your Team.
How do you get started?To learn more about a road map that fits with your objectives and concerns, how you assemble a team of advisors and what an experienced guide can do for you, please give us a call.
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We strive to help business owners identify and prioritize their objectives with respect to their business, their employees, and their families. If you are ready to talk about your goals for the future and get insights into how you might achieve those goals, we’d be happy to sit down and talk with you. Please feel free to contact us at your convenience.
The information contained in this article is general in nature and is not legal, tax or financial advice. For information regarding your particular situation, contact an attorney or a tax or financial professional. The information in this newsletter is provided with the understanding that it does not render legal, accounting, tax or financial advice. In specific cases, clients should consult their legal, accounting, tax or financial professional. This article is not intended to give advice or to represent our firm as being qualified to give advice in all areas of professional services. Business Enterprise Institute, Inc. is a discipline that typically requires the collaboration of multiple professional advisors. To the extent that our firm does not have the expertise required on a particular matter, we will always work closely with you to help you gain access to the resources and professional advice that you need.
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Any examples provided are hypothetical and for illustrative purposes only. Examples include fictitious names and do not represent any particular person or entity.