Get The Most Out Of Your Business
Business Exit Planning and Strategy
Do you have the proper business exit strategy in place?
Transition plan: a comprehensive blueprint for successfully transitioning out of the operations through succession planning or ownership by the sale of a privately held business.
The purpose of a transition plan is to maximize the value of the business, minimize taxes and ensure the business owner accomplishes their personal goals for exiting the business. It asks and answers the business and the owners personal questions inherent to transitioning out of a privately-owned business on their own terms.
A business exit strategy is a plan for the transition of business ownership either to another company, another investor or simply to close shop for good. Even if a business owner is enjoying great proceeds from their business, there may come a time when they want to retire or venture into something new. When that time comes, the business can be sold, placed in the hands of new management, or even acquired by a larger company. Even if it will be decades before a business owner plans to sell their business, what they do in the present can either set it up for a smooth exit or a more challenging process.
The proper steps included in a successful transition are an evaluation of personal and business situations, business valuation, personal and business goal assessments, alignments and value enhancements.
Even if you do not want to transition at the moment, one should be have a solid business exit strategy in place. The average duration of transition – including planning, value enhancement, and positioning – can take 3 to 5 years to complete. Shortcuts can drain value and reduce proceeds available for life after owning a business. Total Business Services Inc. is a Central Texas company that can help you get an early start preserving value, creating opportunity and allowing business owners to transition on their own terms.