Business Exit Planning

Your closely held business is likely your largest asset, but it comes with two frustrating characteristics: you don’t know what it’s worth, and it’s highly illiquid. You may also be struggling to align with other owners or questioning whether you have the energy to both improve the business and prepare for a successful transaction.

Exiting should happen on your terms. You don’t want to go to market with unresolved issues, because those will be exposed during diligence and reduce your leverage. These conversations should occur in advance, not after a buyer is at the table.

The reality is that every business owner will eventually exit, whether by choice, circumstance, or necessity. The key question is: what is the best exit option for you, what will it look like, and what are the ramifications? Each path carries different financial, tax, and personal outcomes, and careful planning helps you select the right one for your goals.

An excellent side effect of exit planning is that it makes your business more valuable now. By focusing on the key drivers of value, exit planning enhances operations, mitigates risk, and boosts marketability. It’s about more than a future sale; it’s about turning uncertainty into opportunity, securing your financial future, protecting your legacy, and ensuring a smooth transition.

Initial Valuation or Triggering Event

Exit planning starts with clarity. We establish a baseline valuation of your business or respond to a triggering event, such as an unsolicited offer, a shareholder buyout, or a succession discussion. This step sets the foundation for the rest of the planning process.

The Three Gaps: Wealth, Profitability, and Value

Successful exit planning requires understanding and addressing three critical gaps:

Wealth Gap: The difference between your current personal and business assets and the resources you need to achieve your long-term financial goals.
Profitability Gap: The difference between your company’s current profitability and what best-in-class peers achieve. Closing this gap strengthens financial performance and supports higher valuations.
Value Gap: The difference between the company’s current value and the value it could achieve by earning a stronger multiple on improved profitability.

By identifying and addressing these gaps, we provide a clear roadmap toward exit readiness, increasing both the company’s performance and value today and its attractiveness to future buyers.

Let’s Connect

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Value Acceleration: “What Gets Measured Gets Improved”

The very act of measuring and understanding the gaps in wealth, profitability, and value creates awareness, which in turn drives improvement. When business owners clearly identify the gaps, they become better prepared to address them. A valuable business is a business ready for exit.

If gaps exist, we help you close them. Our team identifies and implements strategies to accelerate business value by focusing on the factors that drive higher valuations and reduce risk. From diversifying revenue streams and strengthening management teams to improving financial reporting, our goal is to increase your company’s marketability and readiness for transition.

Connections With Other Key Advisors

Successful exit planning requires a coordinated approach. We serve as the hub of your advisory team, aligning wealth managers, tax professionals, attorneys, and bankers so that every aspect of your plan works together. This collaborative approach minimizes surprises and helps you achieve the best possible outcome.

Exit Planning Services

Business value assessment and valuation benchmarking
Exit readiness assessments (value, financial, and personal readiness)
Identification and prioritization of value drivers
Quality of earnings and financial normalization
Cash flow and transferability analysis
Succession planning (internal transfers, management buyouts, family transitions)
ESOP education and preliminary suitability analysis (ESOP 101 discussions)
Transaction advisory support through the ESOP process in coordination with trustees and ESOP counsel
Third-party sale preparation and pre-LOI planning
Key employee incentive and retention planning
Post-transaction financial planning in coordination with the client’s advisory team
Coordination with M&A advisors, attorneys, and wealth managers throughout the process

“Going through the process of selling our business, we were prepared because of their level of attention. All along, we had someone on the phone like a friend.”

Eileen and David Powell, Federal Business Council, Inc.