Are you thinking about your exit? The Covid-19 pandemic has given many business owners the nudge (or kick) they need to think about their exit plan. Whether you’re fortunate enough to have a business that continues to thrive during the pandemic, or your business has suffered, your exit has probably been on your mind.
A good exit plan will address every aspect of your exit, from wealth management/retirement planning in advance to various options for your departure. Many business owners avoid this process because they’re not sure exactly what they want to do or when they want to do it. But the fact that it is a moving target that must be continually re-evaluated does not mean it should be put off until a later date. An exit plan will help you make critical business decisions in the months or years to come prior to selling or transitioning your business.
Our Scenario Exit PlansSM service is exactly what it sounds like – it gives business owners a plan for various feasible scenarios and allows for changes and updates to those possibilities. It is a roadmap for the future and identifies opportunities for changes and improvements that will result in a higher selling price. You don’t have to have all the answers; O&O will put together a team of experts to create a plan that works for you. We’ll advise on a wide range of issues; for example:
- Small changes that enhance the business and increase its value
- Moving certain company assets prior to a sale
- Reduction of tax implications
- Minimizing risk for the seller and the buyer
- Contingency planning in the event of a disruption prior to a sale (pandemic, illness, death prior to a sale)
Our process helps owners give careful thought and establish specific goals for their exit. Every situation is unique, but in general, we’ll have conversations about topics such as:
- The financial and operational health of the business
- Whether you want to exit completely, transition slowly or be available to consult with the new owner
- If you stay on board, consider how much salary you need over what period of time
- Whether your family members aware and on board with your exit plan
- A specific timeline for exit
- Whether gifting, a merger or a recapitalization makes sense
We’ll conduct periodic valuations of the business that will take into consideration market and industry conditions that will impact value. We’ll define where you are, where you want to end up, and the gap between the two. We’ll work together to get your business in the best possible position to sell, and market it accordingly at the right time.
A solid exit plan allows you to be ready when the most opportune time arises and dramatically increases the likelihood of success. We’ll help you define and analyze all options and opportunities, understand the pros and cons of different scenarios, maneuver the maze of taxation, financial planning and legal issues.
For more information on our Scenario Exit PlansSM process, contact us at 913.648.0185 or visit our website at www.ok-om.com.