Why Exit Planning Matters to Every Business Owner
Exit Planning is the strategic process of preparing your business for sale, transfer, and succession while ensuring maximize business value and a secure retirement.
Unexpected events can happen to anyone. Being prepared is key to protecting the business you’ve worked so hard to build. The best exit strategies are developed 5 to 10 years before the transition, giving business owners time to grow value, reduce risk, plan their retirement, and ensure their smooth succession along with the preservation of their legacy.
A successful exit plan requires a team of advisors led by a Certified Business Exit Consultant (CBEC®), including an attorney, CPA, financial planners, and succession specialist, et. al. Greater Prairie Business Consulting, Inc. can either work with your current advisors or help you build a world-class advisory team. ( Learn more about the expertise of our strategic partners.)
Unfortunately, while 96% of business owners agree that exit planning is essential, 87% have no formal plan. Without planning, most owners leave significant wealth on the table and jeopardize the future of their business, family, and employees.
Lack of Preparation Leads to Costly Mistakes:
According to the EPI:
- 47% of exits are involuntary, triggered by unexpected events like death, disability, divorce, or disputes;.
- 66% of owners are unfamiliar with all exit strategies available to them;
- 20% – 30% of businesses that go to market actually sell — leaving many owners without options;
- Poor planning results in a 30% lower sales price on average; and
- Only 5% of sellers are satisfied with net proceeds, and 76% of sellers regret their decision within one year of their exit.
Exit planning is not just about retirement, its about protecting your business, family, employees, other stakeholders, and legacy.
The 6-Step Exit Planning Approach
At Greater Prairie Business Consulting, Inc., we use The International Exit Planning Association’s Proven 6-Step Exit Planning Approach™ to help owners achieve a smooth transition, maximize value, and secure financial independence.
Our Exit Strategies Solutions TM Report includes:
- An Opening Visioning Meeting a comprehensive review of: (i) the owner’s personal legal, financial & retirement documents, (ii) the business’ legal, financial & operational documents and (iii) the business owner’s exit goals;
- 5 Essential Personal and Business Assessments – to evaluate the business owner’s mental and financial readiness for exit, the business’ dependency on the owner, the business’ hidden value that can be converted to a higher valuation, and the business’ readiness for transfer;
- Business Valuation Opinion – that approximates a “Range of Values” for your business;
- Value Gap Analysis to identify the gap between the business current value and owner’s retirement goals;
- An Evaluation of Each Exit Option Available to the Seller – including the legal and tax implications of each;
- A Customized Exit Roadmap – outlining the short-, intermediate-, and long-term strategies to ensure the business is “ready,” “attractive” and “transferrable to a buyer;” AND
- Turnkey Support – future guidance to ensure risk mitigation, value growth, advantageous negotiations, and a smooth, successful exit.
We back our process with an industry-leading performance guarantee — if you are not fully satisfied with our exit plan, you pay nothing !
Succession Planning: Securing Your Legacy
Succession planning ensures the continuity of your business across generations or new ownership. Whether you plan to pass your company to family, employees, or sell to an outside buyer, formal succession planning ensures stability for stakeholders, employees, and customers. We are certified in succession planning and implement it in some form in most of our projects.
Keeping Your Exit Plan Relevant
Updating your exit and succession plan regularly is critical for many reasons, including tax law changes, fluctuating market conditions, internal company changes, technological advancements, unexpected life events, and sudden crises. A regularly updated plan provides flexibility, protects wealth, and ensures you remain prepared for both voluntary and involuntary exits. A regularly updated exit plan provides flexibility, protects wealth, and ensures you remain prepared for both voluntary and involuntary exits.
Are You Ready to Exit?
With 80% of an owner’s wealth tied up in their business on average, the stakes are high. The earlier you begin planning, the more options you’ll have to increase business value and secure the future you envision.
At Greater Prairie Business Consulting, Inc., we can provide:
To ensure a successful business transfer, at maximum value to the seller
Take the First Step Toward a Successful Exit
Don’t wait until it’s too late. Whether you’re 10 years or 2 years away from exiting, the right time to start planning is now.
Schedule a confidential consultation with our CEO today
Download our Exit Planning Brochure
Watch our Exit Strategies Solution™ video summary
Free Assessments
Click on the boxes below and take our free assessments to learn about: (i) your mental readiness for exit. (ii) your personal financial readiness for exit, (iii) your business' owner dependency, (iv) the grow potential of your business, and (v) your business’ readiness for exit:
( Click Here to learn about our Business Valuation Services.)
Curious about what your business is really worth ? … Thinking about selling your business? Schedule an appointment to learn more about our exit planning services, or becoming a “high-performance organization” (HPO) and “maximize your business exit” now by contacting us today !
