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The question is not whether it will happen, but rather when and how it will happen.

Exit Planning

Exit Planning

Every business owner will without exception transfer their business shares and cease to be the owner during his/her lifetime or subsequent to that. It is precisely for this reason that rethinking the strategy of exiting a business should be an integral part of your strategic planning.

There are four principal ways of exiting a business: transfer of ownership to your children, selling the business to other owners and employees, selling it to a third party, or liquidation. In essence, the question is not whether the exit will happen, but rather when it will happen.

Naturally, the successful implementation of such a process is in direct correlation with the time available for its preparation. The preparation does not have to exert a lot of time or money; however, most business owners delay preparations until it is (too) late, which most often results in failure to achieve the full potential of the price they would have acquired had they started the process earlier.

There are three reasons for delay: lack of time due to too many obligations, lack of necessary expert knowledge or lack of interest in hiring a consultant, or not valuing the importance of starting the process on time. All three reasons may be neutralized with our expert help, primarily:

  • In identifying and assessing the value of the assets and operations of the company,

  • In resolving emotional dilemmas: what is the owner’s goal? Does he/she wish to remain in the business to some extent or exit completely? Does he/she wish to sell everything or only a part of the business? What consequences will the act of exiting have on the business?

  • With structuring of the transfer of business and education of successors,

  • In support of tax and legal issues,

  • In maintaining the value of the company through the process of selling (client and employee loyalty)

With expert support in the design and management of the entire process, the business owner can achieve important personal goals and fulfil the values he/she has worked on for many years.