Exit Planning Activities

An exit plan is a comprehensive roadmap to successfully exit a business. This requires developing a transition strategy and a comprehensive plan made up of a variety of different activities. We have develop a list and explanation of some of these activities and have group them for your convenience by the following categories:

Accounting Activities
Legal Activities
Estate Planning Activities
Investment Planning Activities
Insurance Planning Activities
Sales Transaction Activities

There may be many other exit planning activities, but this information provides a good introduction to what a good exit plan would include.

Exit Planning Tips

Assure That Key Employees Stay Around for the Exit

Make sure that key employees stay around until the exit event and sometime even afterwards. There are a number of techniques that can be used to incentivize key employees to stay until the exit event.

Seller Due Diligence

Often a step missed in planning for the sale of a business is for the seller to conduct an accounting and legal due diligence process on their own assets and legal documents.

Create A Family Council

For a family involved business it may be appropriate to create a Family Council as part of the exit planning process. This council would consist of all family members working in the business or impacted by the sale or business transition.

Disability Insurance

During the preparation phase leading up to a sale transaction, one should consider have disability insurance to protect both the company and your family.

Asset Protection Trust

A limited number of states in the United States provided for an Asset Protection Trust, that allows you to avoid or reduce taxes paid upon transfer of any of the trust assets.

Recapitalize Your Business

For some business owners, it may be useful to continue to manage your business, but to take out some of your equity by selling part of your company to private investors.

Accounting

Legal

Estate Planning

Investment

Insurance

Sales Transaction