5 Things Every Business Owner Must Know About Planning for an Exit

Author

RTI Wealth Management– Anthony Cisneros

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Posted on

Nov 02, 2023

Book/Edition

Colorado - Northern Colorado

As a business owner, you have the power to shape your future and leave a lasting legacy. Planning for your exit may seem daunting, but it's a crucial step to ensure a smooth transition. Whether you're planning to sell your business, retire, or pass it on to a family member, there are five essential things you need to know about exit planning. Here they are:

1.       Planning early is crucial. Experts recommend starting the process 3-5 years before you exit. This will give you enough time to address any potential issues, increase the value of your business, and find the right buyer or successor.

2.       There are different ways to transition your business, such as selling to a third party, passing it down to family members, merging with another company, or going public. You need to understand these options to choose the best one for your goals and finances.

3.       Knowing how much your business is worth is essential if you're planning to sell it. Hire a professional to conduct a thorough valuation, which will help set a realistic asking price and identify areas you can improve to increase the value of your company.

4.       Exiting a business is complicated and has legal, financial, and tax implications. To navigate this process, it's best to assemble a team of experts, such as an attorney, accountant, and financial advisor. They can guide you and help you make informed decisions.

5.       It's important to keep your employees and other stakeholders informed and involved in your exit planning. This will maintain trust, reduce uncertainty, and boost employee loyalty and commitment.

Planning for the future is crucial for any business owner. Start early, value your business correctly, build a strong exit team, and communicate with your stakeholders. Proper planning can help maximize your financial return, preserve your legacy, and ensure a smooth transition. Remember, it's never too early to start preparing for the future.

 

 

Editor’s Note: This article was submitted by Anthony Cisneros, CEPA®, CRPC®, AWMA® CRPS®.

Anthony Cisneros is a Wealth Advisor and President of RTI Wealth Management and holds the designation of Certified Exit Planning Advisor, CEPA®.  He may be reached at 970-236-8800 or by email at acisneros@rtiwm.com

Securities and investment products and services are offered through LPL Financial, member FINRA/SIPC. RTI Wealth Management is a separate entity from LPL Financial.

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RTI Wealth Management

Financial Advisor 400 East Horsetooth Road, Fort Collins, Colorado, 80525

Our mission is to grow, educate and prepare our clients for the complexity that life can bring through consultation and education to arrive at individual solutions that fit you and your family.This is accomplished by taking a proactive approach at understanding the lives that each of our clients have. We then become that advocate that can help to coordinate and facilitate communication with tax, legal, and insurance professionals as well as other trusted advisors and often even family members.It is not about the value of your things, but what you value. It is everything that makes you, you. Your stories, the challenges you have overcome, the successes you have experienced, as well as what is important to you. You will have a dedicated advisor surrounded by a team with more than 40 years of combined experience in the industry to walk side by side with you on your journey.