Many different companies have described how they approach exit planning for the business owner. The challenge is that for each business owner the process is likely to be unique. Some business owners are focusing on selling their business. Others are worried more about having their children and/or key employee take over the business.
But no matter the key planning objective many of the elements remain the same.
In every well constructed exit plan there likely exit the following key elements:
- An evaluation of the value of the business
- An assessment of the personal, financial and business goals for the owner
- Personal financial planning
- Improving the top and bottom line of the business
- Reducing risks that exist in the business in order to increase the value of the business and improve its viability
- Considering exit and transition options
- Clarifying the goals of the owner
- Choosing whether to stay in the business or to sell