“Coming from a family of business owners, I’ve seen firsthand how important it is to plan for an eventual exit,” says Senior Investment Advisor Matt Sampson, CFP, CEPA®. He obtained his Certified Exit Planning Advisor credential because, as he explains, “Business owners often put their life’s work into growing and creating a business, taking immense pride in providing for their families and generating value for the many stakeholders involved in the success of the enterprise. Yet so many business owners wait too long to plan for their exit. Building your advisory team, managing toward growth and eventual exit, and having an understanding of one’s exit options puts business owners in a strong position, no matter what curve balls come their way.”

The reality is that 79 percent of business owners have no written transition plan, and 49 percent have done no planning at all, yet 99 percent agree that “having a transition strategy is important both for my future and for the future of my business.” (source: Exit Planning Institute) The Exit Planning Institute notes that half of all transitions are involuntary, forced exits due to things like divorce, illness, or distress, and three quarters of business owners regret selling their business only a year later. Family businesses don’t fare much better; the Family Firm Institute estimates that 70 percent don’t make it to the second generation, and 90 percent won’t survive to the third generation.

Business deals fail for a variety of reasons, such as a lack of control over the exit, an undervalued company, or overpayment of taxes. This is where exit strategy planning comes in. Some of the advantages people have found from engaging in a thoughtful exit strategy planning process include:

• Gaining more control over how and when you exit
• Maximizing value in both good and bad times
• Keeping more of what you get rather than paying it in taxes
• Shortening the due diligence and documentation periods
• Planning ahead for your lifestyle without the business income
• Having strategic options to choose from

As a Certified Exit Planning Advisor, Matt and his team can help you prepare early so that your business is positioned to maximize positive outcomes when you are ready to exit. They can guide you through the different exit options, whether you are considering intergenerational transfer, a third-party sale, recapitalization, or other alternatives. Most importantly, Matt helps his business owner clients align their business, financial, and personal or family goals; maximize their enterprise value and readiness; and then turn their intentions into an actionable plan.

Don’t wait to engage in the exit planning process! Start now: you can use the button below to download an Exit Planning Checklist outlining what you can do now to be ready later.

Contact us at any time to learn more about how we can help you make your business transition a success.