Our Process
BEI Seven Step Exit Planning Process
The Seven Step Exit Planning Process™ is indeed a holistic approach, but the process is unique for each business owner. Your objectives will drive the creation of an Exit Plan that’s unique to you. This is not an all-or-nothing approach.
For all business owners, we start with
Steps 1 and 2.
From there, we customize the components of your plan to fit your unique objectives.
Step 1: Set Exit Objectives/Goals
When do you want to exit? How much income will you need? To whom will you leave the business? We discuss these questions and more in Step 1 as we establish objectives to help you reach your goals.
Step 2: Quantify Available Resources
The starting point for reaching your exit objectives begins with Step 2. How much is your business worth? What will the business’ cash flow likely be? What about income from non-business investments?
Step 3: Focus on Business Value
Do you know how to increase the value of your ownership interest? What about protecting the value you’ve already created? In Step 3, you and your advisors identify which value drivers in your business are important to meeting your objectives and design strategies to protect the tangible and intangible value of your business.
Step 4: Sale to Third Party
Do you know how to sell your business to a third party? How will you maximize your cash and minimize your risk and tax liability? Many business owners do not realize the complexity and details involved in a third party sale until they are well into negotiations. We will help you take the appropriate steps before you put your business on the market so that the sale process can be organized, efficient, and aligned with your goals.
Step 5: Transfer to Insiders
Do you know how to transfer your business to family, co-owners or employees? If you choose to go this route, we’ll provide guidance on maximizing your value, timing and minimizing risk.
Step 6: Develop a Contingency Plan for the Business
Will your business continue if you do not? Business continuity planning encompasses a wide range of consequences that may follow the departure of a majority owner or a member of a controlling owner group (because of death, disability, retirement or termination). These issues frequently keep business owners awake at night wondering what could happen to their ownership interest and to the business itself.
Step 7: Develop a Contingency Plan for the Owner’s Family
Have you provided for your family’s financial well-being should you die or become incapacitated? Before and after your ownership transfer? Business owners are unique in the world of personal wealth and estate planning because their businesses typically represent a significant portion of both their personal net worth and their annual income. If you have children active in your business, your planning is even more complex. In Step 7, we create a well-balanced plan that protects your wishes and provides for your loved-ones.