The Benefits of Exit Planning

There are many benefits to exit planning for a business owner. If the business owner is just starting out, then an exit plan can be the roadmap to their eventual exit. If the owner is already into planning their exit, then a well-structured exit plan can answer questions, provide critical information and develop a detailed execution plan.

There a many other benefits of exit planning:

• An exit plan asks and answers all of the questions that a business owner may have about their eventual exit.
• An exit plan creates a timeline and action plan that is used to drive the exit plan forward in a timely manner.
• An exit plan integrates financial planning, wealth management, and personal planning by the business owner.
• An exit plan helps determine the value of the business and ways in which a business owner can increase the value of the business prior to selling or transferring ownership of the business.
• An exit plan can help reduce the amount of income and estate taxes that would be paid with the sale of the business and ultimate transfer to the business owner’s estate.
• An exit plan can help the business owner create a clear vision of what they will do next after they have transitioned out of the business.
• An exit plan provides a way for the business owner to have control over how and when they exit.
• An exit plan can reduce the amount of stress that is faced by the owner during the exiting process.
• An exit plan can assure continuity of the business and potentially protect the legacy that was built by the business owner.

Finally the business owner benefits by organizing the entire process and helping the owner feel confident in their selected exit strategy and valuation of the business.

WATCH OUR VIDEO about the benefits of exit planning.