Exit & Succession Planning

Planning Your Wealth Transfer Options

An important step in your preparation is to know your readiness – both mental and financial. Planning early will serve to clarify your goals and strengthen your position. We can help you quickly gauge your mental and financial readiness with a confidential review of your business and personal assets.

Which Owner Type Are You?

Our process simplifies your decision-making by helping you understand the range of options, key concepts, and structures available to design a plan that can achieve your goals.  You have two primary options to transfer your business: internal and external. Within these two primary options are five strategies that can be used to transfer. Your method of transfer will be a function of your goals. Purely financial goals likely dictate different transfer methods than would a desire to leave a legacy to family or key employees. The transfer method in turn will determine valuation as well as the type and cost of capital that is available to the buyer. Different deal structures, tax structures, and levels of ownership also impact pricing and control. Our tools enable you to quantify this range of options and enables your professional advisory team to collaborate in concert, ensuring your plan is executed consistent with your goals.

Which Exit Option Types Are Right For You?
Exit Options and the Range of Values

The table below illustrates how different transfer options generally represent different levels of values. It’s important to note that the synergy value, when accounting for taxes, fees, and lost income may not result in the highest absolute payout. It’s also important to consider that not all companies will have the option of a synergistic buyer. In addition, many owners aren’t always motivated by the highest dollar payout. Legacy and loyalty issues to family and key employees are often considerations. Maintaining control is often another motive. The key focus in our process is to help you first understand these options so you can choose the right course for your action plan.

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