For a number of business owners, a successful exit from a business is their entire goal when starting the business in the first place. If you’re looking at selling your business, a business broker like Utah Business Consultants is here to provide high quality exit planning services.
A good exit plan will have three primary elements: An exit planning advisor, an advisor team, and a process that these entities carry out. Let’s look at each of these elements and lay out their basics.
Exit Planning Advisor
An exit planning advisor is at the head of the spear, the person coordinating the efforts. The entire process starts with this person, whose duties may include:
- Explaining the exit process to owners, management and other advisors
- Guiding the process from start to finish
- Using tools to ensure collaboration among advisors
- Coordinating between owners, advisors and themselves
- Assuring that the plan follows the process steps laid out in our third section momentarily
- Making recommendations for the owner and owner’s advisors to consider, with input from the advisor team
In most cases, business owners start by hiring a qualified exit planner. This person can keep everyone in line and ensure a successful exit.
Especially for any moderate or large-sized business, the advisor team will also be vital. Each advisor will add expertise in various areas related to the process steps – some may have a background in legal documents or ownership transfer while others might be in charge of properly valuing the business for sale. In some cases, a business owner’s advisors will be qualified to join the advisor team themselves.
The process for exit planning will vary between companies, but will include a detailed examination of every factor at play. It will involve coordinating between multiple areas, planning efficiently, and keeping the big financial picture in mind throughout.
For more on the vital factors of exit planning, or to find out about our other business brokerage services, speak to the pros at Utah Business Consultants today.