TOMORROW'S EXIT STRATEGY BEGINS WITH SUCCESSION PLANNING TODAY!
There will come a day when you step down from the helm of your business. That day may be a long way off or right around the corner, but it’s the astute business owner that begins to consider their succession planning options today.
Did you know?
- 81% of business owners want to stop working in their businesses in the next 10 years
- 79% of business owners do not have a written plan for the future of their ownership
When asked “What’s standing in the way of your exit?”, the most common perceived obstacles business owners indicated were:
- 33% said I need to improve the business first
- 28% are concerned about external factors
- 12% are hindered by uncertainty
Source: BEI 2019 Business Owner Survey Report
What the stats above tell us is that people are unsure about exiting their business. A third-party sale is still the most popular consideration, but transfer of ownership to children/family members or key employees is highly desired. This indicates a strong preference among business owners to keep the business in the hands of people they know. Preparation and planning are needed to have a successful exit process. Start by taking the online Exit Planning Assessment Questionnaire to gauge your readiness.
Taking this questionnaire will allow you to understand your exit preparedness. After completing the questionnaire, SVA will summarize your results and compile a personalized report using The BEI (Business Enterprise Institute) Seven Step Exit Planning Process™.
The BEI Seven Step Exit Planning Process™ is a customized comprehensive approach to designing and implementing a business owner’s successful exit from their business. The Exit Planning Process helps maximize the financial return, minimize tax liability, plan for contingencies, and increase the likelihood of a successful transfer out of the business.
- Step 1 – Your Exit Objectives
- Step 2 – Your Business and Personal Financial Resources
- Step 3 – Build and Preserve Value
- Step 4 – Selling Your Company to a Third Party
- Step 5 – Transferring Your Ownership to Insiders
- Step 6 – Business Continuity
- Step 7 – Personal Wealth and Estate Planning