· Tax, and
· Insurance Issues involved in exiting a privately held business.
A well developed Exit or Transition Plan will address the following general goals:
1. Maximize the value of the business
2. Minimize Estate and Capital Gains Taxes
3. Maximize the owner’s “Life After Business Satisfaction”
All goals and objectives are driven by the business owner and their wants and desires. Some may want to pass the business on to the next generation, while others may decide to sell to a 3rd party. An Exit / Transition Plan will allow the owner to consider all the possibilities and help them choose option that meets their goals and objectives.
To be perfectly clear, and a little blunt ………everyone will exit their business. Some will do it voluntarily, after careful planning, making certain their life’s work enables them to move successfully on to the next challenge they choose to pursue. While others will exit involuntarily, with no plan in place, leaving headache and heartache for the loved ones left behind, who will never get to reap the benefits of the blood, sweat and tears expended to build their business.
Which type of owner do you want to be?
Cliff Olin, MBA, CM&AA, CEPA and principal at Olin Capital Advisors, a small to mid market, mergers and acquisitions advisory and exit planning firm. Cliff is a Certified Exit Planning Advisor and has spoken to many groups regarding Exit/Transition Planning. He can be reached at firstname.lastname@example.org.