 Succession and Exit Planning>
'‘Small’ businesses are often still run by the founders or their children, who may never have crafted an exit strategy. Because of their size, these businesses remain under the radar screen of investment banks and most professional advisors who tend to focus more on the ‘middle’ market.
Consequently, when the time comes to sell or transfer ownership, it is too often a stressful event fraught with questions such as: ‘Is the business valued fairly? Have we covered all the bases? We know what this business is worth - how do we communicate it to the buyer?’ The personal, business and financial issues involved can be overwhelming for those without a plan.
We lead our clients through a systematic process of exit planning and beyond to ensure continued financial health after a liquidity event.
How We Do It
Goals
First, we make sure the client is running to something, not from it. Once we set the goal, we apply the cardinal rule of dead-reckoning: Navigate from where you are, not from where you thought you would be at this point.
Assessment
To determine where we are, we prepare a comprehensive, current company assessment and determine its competitive position in its industry.
Valuation
We then conduct an objective valuation of the business to establish its current fair market value. This also allows the client to consider the company through a prospective buyer’s eyes.
Value Enhancement
Inevitably, there will be areas for improvement. Simply knowing what they are enables a decision either to address them before exiting or leave them for the new owner, and pricing accordingly. The buyer’s risk is thus mitigated and both parties are assured a true fair market value.
Strategy Implementation
When the previous steps are in place, we assist you in identifying your options and executing a viable exit plan.
Post-Sale Financial Planning
If all goes according to plan, your wealth portfolio will change significantly after your exit. We will help you find and assess the best enhanced financial planners for you and your family.
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