What is the Seven Step Exit Planning Process?

Step One: IDENTIFY YOUR EXIT OBJECTIVES

In choosing this Component, your goals may include reaching a target business value, protecting valuable business assets, developing an independent and strong management team, and motivating and retaining key employees. We will work with you to identify the goals you hope to achieve by completing this Component of your Exit Plan. We will make sure that in achieving these goals, we move you closer to reaching your overall Exit Planning Objectives.

Step Two: IDENTIFY YOUR BUSINESS AND PERSONAL FINANCIAL RESOURCES

In addition to identifying which goals you want to achieve, it is equally important to determine what you have, namely, the current value of the business and its current and projected cash flow. You and your Exit Planning Advisor use current business value and projected cash flow to determine which planning tools are best suited to move you closer to your objectives. Without an initial determination of what you have, we cannot measure our progress toward your stated objectives.

Step Three: BUILD AND PRESERVE VALUE

Based on the first two Steps, we make specific Recommendations to help grow business value, protect existing value from the actions of others, and preserve company value by minimizing income taxes. Based on your company’s needs, these Recommendations may include installing or updating financial reporting systems, aligning employee performance with the attainment of your profitability goals, or protecting proprietary information through covenants not to compete with key employees.

Step Four: SELLING YOUR COMPANY TO A THIRD PARTY

If you choose to sell your company to a third party, we design strategies to improve the likelihood of a successful sale, minimize the taxes you will pay upon sale, and maximize your sale price and terms. If you choose instead to retain ownership or transfer the company to insiders, you will skip this Step.

Step Five: TRANSFERRING YOUR OWNERSHIP TO INSIDERS

Insiders are children, co-owners, or key employees who often do not have the financial resources to pay owners what their companies are worth. If you choose to transfer your company to insiders, in Step Five, we create a detailed plan to ensure that you receive the money you desire from your business, minimize the risk of non-payment, and ensure that you retain control of the business until you have been fully paid.

Step Six: BUSINESS CONTINUITY

As part of your Exit Plan, we coordinate your business continuity planning with your lifetime objectives. The purpose is to ensure that your goals, such as transferring the company to the successor of your choice and having your family receive full value for your ownership, are met whether you survive to see your business exit or not.

Step Seven: PERSONAL WEALTH AND ESTATE PLANNING

In Step Seven, we coordinate your estate plan with your Step One objectives. Our design emphasizes tax efficiency (in the transfer of wealth or transfer of the business to family members or charity) and ensures that your family receives the amount of annual income necessary to satisfy the financial security goal you set in Step One