Small Business Consulting

Business Exit Planning

By:  Gerald House

There comes a time when you will want to either sell or pass along your business to your heirs.  How do you begin the process of exiting your business?  What are the necessary steps involved?  How long will it take?  What resources are available to assist in this process?

Actually, there are several professional advisors available specifically to assist you with exiting your business.  Some of these professionals can offer excellent advice in certain areas concerning the overall progression of your exit planning.  In addition, a business financial planner can tie all of this together and walk you through the process from investigating your needs to a successful transition of ownership.

At any rate, here are a few of the professional advisors you will be dealing with during the transition:

Business and Estate Attorney—you will want to find someone who is very familiar with business transactions in addition to estate planning.

Certified Public Accountant—hopefully you have already established a relationship with a good CPA as part of your accounting and tax needs.

Personal Financial Planner—who will assist you with your personal goals and objectives, uncover additional insurance and investment needs and guide you forward towards meeting these needs.

Business Broker—the person to turn to for marketing purposes who will tap their resources of available buyers to find a buyer for your business.  A good business broker can be an invaluable resource.

Licensed Security Professional—who can make a few recommendations for investing the income from the sale of your business and conduct the trade on your behalf.

Insurance Agent—your insurance needs may change after the sale of your business leaving your with some holes to fill in your insurance coverage—especially health and life insurance.

Business Appraiser-can give you a third party evaluation of your business in order to facilitate the sale or transfer of ownership.

Business Financial Planner—who is an experienced business professional and is well versed in business ownership and planning–including the sales process.

(Note: If you can locate a Business Financial Planner, they can lead you through this entire project—from start to finish—much like a football quarterback.  A good business financial planner is someone who has had extensive business ownership, business sales experience, business appraisal knowledge, and knowledge of estate, insurance, investment, tax, and retirement planning)

The 10 Step Process

Step 1:  Establish Goals and Objectives

Step 2:  Get Your Books in Order

Step 3:  Establish Business Value

Step 4:  Increase the Value of Your Company

Step 5:  Protect Business Value–Contracts

Step 6:  Protect Your Business Value—Assets

Step 7:  Retirement Planning

Step 8:  Estate Planning and Tax Considerations

Step 9:  The Sales Process

Step 10:  The Training and Transition Period

From start to finish, the time involved may take a few years.  The earlier you get started, the less stressful it becomes.  This process is not designed to work in a few weeks.  Get your advisory team together now.

Read Full Post

Gerald House (Business Advisor)

Gerald has a diverse background in business management, financing, real estate, real estate appraisal, and construction. He has owned his own construction business, was an independent real estate appraiser, real estate broker, and a partner in a steel fabrication shop. Therefore, he understands the complexity of business ownership. Gerald has consulted with numerous businesses on management and business organization and specializes in business valuations, real estate investment analysis, franchise and business sales, business finance, and business financial planning.  His professionalism has earned the respect of business owners and other real estate professionals. Gerald also consults with real estate investors and is a licensed real estate broker in the states of Georgia and South Carolina.  He holds a Bachelors degree from Augusta State University and a Masters of Business Management from Southern Wesleyan University.

Website:  www.dcpwebsite.com