If you want to exit on your terms, then you have to plan for the exit.
We help business owners maximize the value that they keep when they exit by developing their goals and the plan for their exit.
Every business owner will exit their business, whether they plan for it or not. The rule is simple: the farther in advance you plan the more likely you are to achieve your goals.
The two most common ways to exit a business are succession and sale.
- Succession is a transfer of the business to others in the business, often those are family members.
- Sale is the selling of either stock or assets to someone who is usually a 3rd party outside buyer.
Family businesses are a huge part of the US economy. They make up 64 percent of the GDP in the US, provide jobs for 62 percent of the US labor force and represent 73 percent of new job creation. Ninety percent of U.S. Wealth is tied up in family businesses. Yet only around 30 percent of family businesses make it to the second generation, 12 percent to the 3rd generation, only 3 percent to the 4th generation.
Succession planning is critical to the process for succession and yet few businesses take action early enough to make a difference. We help our clients begin taking action years in advance of the event and provide processes for businesses to follow to develop the skills needed by the younger generation to be successful. This ensures that the generation leaving the business has a soft landing and a strong family enterprise to drive their next life act.
Sales are the second most common form of exit.