Spotlight: Exit Planning


 

As SealedBid continues to highlight the importance of preparing for the ongoing future of your company, we would like to welcome you to part two of the SBM M&A Spotlight Series regarding succession planning!  In part two, this Spotlight will focus on “exit planning” and the important points to consider when transitioning ownership. 

 

What is an Exit Plan and How Does it relate to a Succession Plan? 

As discussed in the Spotlight: Succession Planning, an exit plan is what we consider to be the final culminating component within an overall business succession plan.  A complete succession plan includes estate planning, the transitioning of leadership and ultimately a detailed exit plan pertaining specifically to a change in ownership.

 

A good exit plan analyzes all factors that impact the business and the current owner(s) including the future of the company, the employees and the community.  Exit planning considers these factors and the ownership’s goals to create a strategy to maximize business value, personal and business resources and insure a successful transaction. 

 

 

Where to Start an Exit Plan

Each business and ownership group will have unique challenges and priorities that dictate the first steps in creating an exit plan. Sitting down with advisors (e.g. business intermediary, attorney, CPA, banker, etc.) that are familiar with the business and the current M&A market will expedite the process.

 

Elements of a Well-Designed Exit Plan

 

 

Although everyone does not start their exit plan in the same place, below we outline some general steps to assist with your exit planning strategy. 

 

Exit Planning Steps

 

Common Pitfalls of Businesses that have Not Properly Planned for an Exit

 

Why You Need an Exit Plan

 

SealedBid's Role in Exit Planning

 

SealedBid is proud to have successfully served clients for over 20 years with M&A Advisory, Recapitalizations, Succession/Exit Planning, Family Transfers and Management/Partner Buy-outs.  As a boutique firm, SealedBid engages in a limited number of projects at any given time to ensure we deliver the highest level of senior attention, expert advice and transaction experience to each client.  Our experience, knowledge and attention to detail are crucial to successful succession planning.

 

As you begin to develop your exit plan, remember that SealedBid has the experience, knowledge and expertise needed to successfully guide a transaction, family transfer or management/partner buy-out.

If you are interested in learning more about SealedBid, our services or our team, please do not hesitate to contact us at (952) 893-0232. SealedBid will work closely with you, your financial advisor, attorney, accountant and banker from the initial stages of pre-marketing through closing and post-closing.

In closing…remember to write your succession and exit plan long before you need them, so when the time comes to act, the terms and conditions are already defined and agreed to by all parties.