STAGES OF EXIT PLANNING
There are three distinct phases that influence Exit Planning for a business owner:
PHASE I - LONG VIEW In this phase an owner has many options and sufficient time to plan an orderly transition, even if the business is not properly positioned for sale. This is the ideal phase to consult advisors, including tax attorneys, accountants, estate planners and professional transaction intermediaries like Fulcrum Partners. Proper attention in this phase allows the owner to arrive at the Ideal Point of Transition fully prepared to execute the plan.
PHASE II - CHANGE-DRIVEN In this phase owners begin to be motivated to sell by changes in personal and business circumstances. Thoughts of retirement, health issues and burnout can drive the process on a personal level, while the need for additional capital or inability to exploit new opportunities can be influences on a business level. The owner feels emotional pressure to act, yet has not prepared for a smooth transition. Even though an owner may be late preparing for the Ideal Point of Transition, Fulcrum Partners offer value in this phase by helping them execute the best possible transition.
PHASE III - LIMITED OPTIONS In this phase significant changes in personal or business circumstances drive unsavory options. Declining health, divorce, family disputes, expense pressures or market reversals can force involuntary decisions upon an owner. Having failed to plan for transition in earlier phases, owners often find the decision has been made for them in this phase - when few alternatives are left.
offer the most value to an owner when we are engaged early in the process, while their options still look attractive. We help the owner arrive at a thoughtful Exit Strategy, then assist them through the entire Business Transfer Process:
- Market Readiness Assessment
- Confidential Business Review to Showcase the Value of the Business
- Confidential Search for Multiple Qualified Buyers
- Negotiation of the Best Price, Terms and Conditions of Sale
- Execution of the Transaction