Exit Planning Preparation
If you are thinking of selling your business, either now or in the future, the time to start planning is now.
Pavilion Business Services will support you through the stages of grooming your business for sale. Don’t miss out on a higher enterprise value by not thinking ahead for this important milestone.
- Short, medium and long-term exit planning
- Comprehensive evaluation of current business position, and formulating a complete strategic plan ready for exit
- Analysis of key areas of the business, and full preparation of each area ready for sale
- Exit options analysis, explanation and planning with owners/shareholders (and board of directors, if appropriate)
- Identifying applicable third-party requirements, such as lawyers, tax professionals, etc.
- Impartial advice and resolution of complex business matters or disputes relating to sale
- Professional, detailed business valuation
- Structured planning and guidance for each step of preparation for sale
- Maximizing sales value and ensuring a smooth process from start to finish
5 Myths of Exit Planning
Exit planning is crucial to profitably transferring ownership of your company. These are some common misconceptions surrounding the exit process:
- “I will just sell my business and retire.” – Easier said than done, selling your business is not a simple task. Just because you decide to sell your company, doesn’t mean it will immediately sell. According to the American Chamber of Commerce, less than 20% of businesses for sale actually sell. If your company operates in a niche market or location, it will be harder to find buyers.
- “I will deal with my exit plan in five years.” – Many business owners say they intend to retire “in five years.” A couple years down the road, the answer is still “in five years.” A formal exit plan will help guide you to meeting post-exit financial goals on your terms.
- “I can probably do this myself.” – The Family Firm Institute reports that more than 70% of businesses fail to transfer to the second generation or to an outside buyer. Reaching out to your lawyer, accountant and insurance agent are good first steps, however the information these parties provide you with will be scattered making it difficult to know what to do next. Using professional consultants that know how to navigate a business exit strategically will help you obtain your personal, business and financial goals.
- “My business is worth way more than that.” – Most owners overvalue their businesses, but your company’s value depends on who you are selling it to. Formal business appraisals from accredited advisors will provide you an unbiased business valuation and they will help you understand what makes your business valuable to buyers. By planning your exit early and conducting a business valuation, you have the time it takes to make adjustments and improve your valuation.
- “That will never happen to me.” – Death, divorce, disability/disease, and departure, The Four D’s of an Exit Strategy. An untimely death or disability will result in buy/sell agreements that are not aligned with the business owner’s motives or goals.
How can Pavilion help?
By creating an exit plan with the aid of professional consultants will help avoid the unintended consequences of an outdated, poorly drafted or non-existent agreement. To contact Pavilion Business Services for a free consultation, Click Here.
Pavilion Business Services is here to prepare your business for success and growth in the years leading up to putting the business on the market.