Success is in your hands

Why Have a Business Exit Strategy?

Prepare for an exit before you need to

If you are thinking about exiting your business someday, you can’t start planning too early. Exit strategy management helps you:

Solidify and document owner expectations and timelines for exit/transition
Develop a foundational business exit strategy to run the business in preparation for a profitable exit
Plan for emergencies (death, financial crisis, etc.)
Get new capital (Investor and lender criteria often require an exit plan.)

We provide exit strategy planning that meets all of your needs, including a Vancouver business sale as well as globally.

Common exit options

There are eight basic options for business owners to exit a business:

Transfer of Ownership to Family Members
Sell to Other Shareholders
Sell to Management (MBO or LBO)
Sell to Employee Stock Ownership Plan (ESOP)
Sell to Third Party (Industry or Financial Partner)
Refinance or Recapitalize the Business
Go Public
Liquidate the Business

What is an exit plan?

An exit strategy business plan is developed through a process to help determine the best means to exit ownership. A “living document” is prepared to identify the desired outcomes and exit strategies that can be adapted to potential changes. Many owners think exit strategy planning starts when they decide to sell the business. However, there are events that can trigger a forced exit. These include a sudden market change, death, illness, divorce, or family issues. Using an exit strategy management service is critical to minimize these kinds risks and ensure the success of all potential exit possibilities.

Why you need exit strategy planning?

Less than 40% of business sellers feel their business transition was successful. Lack of planning and expertise in the selling process were the primary reasons for the failures. (Statistics from Business Transition/Succession, October 2008, ROCG)
71% of SME owners plan to exit within next 10 years. (Canadian Small Business Association)
40% of businesses are facing ownership transition at any time. (Canadian Small Business Association)
89% of business owners will rely on proceeds of a business sale to fund retirement. (Canadian Federation of Independent Business)

Benefits of an exit plan for you, the owner

Control of your own destiny
Maximizes value if selling
Optimizes taxes for business value and minimizes taxes upon sale
Improves the likelihood of success responding to any contingency
Prevents distress sales created by emergency situations
Preserves your legacy and business continuity
Family business succession planning clarifies issues and sets the stage for a bright future

Benefits of an exit plan for your business

Maximizes your company value in good and bad times
Improves your business potential to create differentiation and be competitive
Provides a method of continued measurement against desired goals
Brings clarity and focus to management with a well-defined future direction
Mitigates risk due to unforeseen critical events that can force an early exit
Develops the foundations to attract the right buyers and maximize financial outcomes
Increases retention of key talent through planned development activities

Register for a free seminar to learn the principles of succession planning.