Navigate The Business Exit Ramp

How advisors can navigate the business exit ramp.

Exiting a business is like taking a freeway off ramp—except it may take years to reach the end of that ramp. Here are some key factors for advisors to consider when a client asks you to assist in developing an exit strategy.

Look for an exit consultant who won’t poach your client.
It’s a relatively new field, but there are specialized exit groups that will work with you as a consultant, not a competitor. Find one of those if you want to keep your client’s business.

Question them about their specialized expertise.
Whether it’s the next generation taking over, a transfer within the company, or a new outside buyer, selling a business presents all kinds of tax and legal implications—especially if that business has grown over the years. Question any would-be exit consultant about exit strategies that provide the client with the greatest net proceeds, not necessarily the highest sale price.

Be sure they have a holistic view of exit planning.
There are many types of advisors offering exit planning these days, but do they have a professional bias? For example, an insurance company may be good at risk management but do they try to create a strategy with the products that they sell but not the strategies that you need?

Ask how they’ll maximize the sale value of the business.
Creating business value is not just about increasing revenue or decreasing expenses, it is also about reducing risk. Knowing what business value drivers need attention and will drive the greatest value increase is key in selecting an exit planner.

To learn more, talk with BeReady.
If you’d like to learn more about finding the right exit consultant—with no obligation—talk with BeReady. It’s led by exit specialist Anna Halaburda, CPA, CBEC®, CFP®. She’s spent more than 20 years creating and guiding successful exits. She and the BeReady staff can tell you more about what to look for in an exit consultant.