Exit Planning

The strategic process of preparing a business owner or shareholders for the eventual transition of ownership of their business, typically through a sale, merger, acquisition, or succession. The goal of exit planning is to maximize the value of the business, ensure a smooth transition, and achieve the owner’s financial and personal objectives upon leaving the business. Key components include determining exit goals, calculating enterprise value, maximizing business value, planning for tax and legal issues, creating a succession plan, and preparing the owner for their post-exit lifestyle. Exit planning is typically done over several years to ensure a smooth transition, protect the legacy of the business, and meet the owner’s goals. It’s often integrated with succession planning and estate planning to address both business continuity and personal wealth management.