EVERY BUSINESS NEEDS AN EXIT PLAN
Exit Strategy Planning is based on the simple premise that eventually every owner will leave the business. The question is whether the owner leaves in a manner that provides maximum benefit and protection to the owner, their family and the business. Business Exit Planning is a proven process designed to allow an owner to identify and achieve specific personal, financial and estate planning goals.
We understand selling a business is the most important financial event in a business owner’s life – the reality is the owner has only one chance to get it right! Not having a formal exit plan puts you at risk of not getting maximum value for your business and could make the transition process much more difficult than it needs to be.
Answer these questions:
- When are you thinking of selling your business?
- How much money will you need when you sell your business?
- Who will end up owning your business?
THE SEVEN STEP SUCCESSION PLANNING PROCESS
Planning to sell your business can be overwhelming when considering the broad range of issues and advisors with whom you will be working. Utah Business Consultants follows the Seven Step Succession Planning Process™ developed by the Business Enterprise Institute. This process considers your objectives in selling your business and aligns current and future advisors to these objectives.
Your Succession Plan will rest on three owner-established goals:
When you want to sell or cut back significantly from day-to-day operations
How much money you want when you sell
Who you want to sell the business to
These objectives form the foundation of your Succession Plan.
Where you are is as important as where you want to go. This next step determines what you have so you know what your business is worth. With this in mind, we can determine what needs to be done in order to achieve your objectives in Step 1.
What features, or characteristics, are necessary to make your business saleable and valuable? These features (Value Drivers) either reduce the risk associated with owning the business or enhance the prospects that the business will grow significantly in the future. In this step, we will identify ways of maximizing and protecting your business value.
Selling your business to an outside third party has immediate value to you in terms of cash in your hand. This will certainly minimize your financial risk and eliminate any family succession planning issues. Your succession plan will develop an action plan that will set your business up to sell for its highest value.
A sale to insiders (family members, key employees, other owners) does not end with the closing. Only when your price is paid in full does the sale end. In this step we will identify action items that orchestrate a successful sale to insiders who often lack sufficient cash.
Business continuation is much more than simply making sure there is a new owner. If you die or become disabled before your succession plan is complete, your dream of financial security will become unattainable. Your succession plan will develop solutions to realizing your business’ value in case something unexpected happens to you or your business partners.
The final step in creating your succession plan is to resolve issues related to preserving your wealth and passing it along to your loved ones. For business owners, this issue can be complex at times because a large portion of your total estate is tied up in the value of your business. Your succession plan will work to resolve these issues and provide a clear road map in achieving your goals and objectives.
Selling a business in Salt Lake City, Utah is a straightforward process—that is, if you work with the right people who will guide you. You’ve poured resources and hard work into your business; it makes sense to sell it for the right value.
But where do you start?
To some, the idea of an exit strategy seems negative. It could be considered an indication of dissatisfaction with the business.
In reality, an exit strategy maps out your optimization plan in case you decide to put your business on the market. This also allows you to focus on valuable aspects, such as short-listing potential acquirers or buyers.
Business Exit Plans: The Need
Good business planning documents contain clear exit plans that outline your strategy from day one. Initially, developing an exit plan this soon may seem odd, but potential investors are interested in long term plans. To capture their interest, your exit plans should be very clear, since this will dictate the company’s operations.
For example, if you are planning to pass the business on to your children, you must train them at a certain period and get them involved in the company. Are you planning to get listed on the stock market? Then be sure to comply with all statewide accounting regulations, so that your records stand up to intense scrutiny.
Common Exit Strategies and Considerations
Typical exit strategies include the following:
- Merger & Acquisition (M&A). This option involves merging with a similar company or being purchased by a larger enterprise. This win-win situation saves resources and is also a quicker way to grow revenue by creating products.
- Sell to interested individuals. This is another great way to cash out, pay yourself and your investors, and take some time off. The ideal buyer, however, should possess more skills and interests on the business’s operational side.
- Liquidation and close. When an entrepreneur decides that enough is enough, they may elect to close their business doors and liquidate.
Why Choose Us
Utah Business Consultants is no stranger to the process of selling a business in Utah. We know that you invested time, resources, and hard work in building the business. Whatever the motivation is for selling—from relocation to retirement, or just wanting a change—the decision is never easy. Amid the numerous considerations, you just want to achieve one goal: getting your fair share.
Our company focuses on connecting sellers with the right buyers. Our brokers negotiate business deals and transactions every day; trust them to lead you through the nuances of the selling process, exit plan creations, tax accounting, and closing issues.
We have a thorough understanding of the market’s current climate, which we use to determine the best price for your business. Our brokers research similar companies or recent sales histories, which can point you to potential buyers. This not only prevents you from wasting time, it also sets realistic expectations and gets you a fair return on your business.
Transparency and Confidentiality
Learn more about how to sell a business in Utah from our experienced brokers. We also educate you on the process of business selling, and we always abide by complete client transparency to ensure you stay in the know.
Each sale we enter into is confidential. We value client privacy; confidentiality is key when selling your business. All meetings and inquiries regarding the sale are kept confidential and can be scheduled at your convenience.
Selling your business in Utah need not be overwhelming. With us, you get access to our extensive network to connect you with the right buyer. Get in touch with us today and schedule a free consultation.