Transition Planning Guide – 2nd Edition

BEGIN WITH THE END IN MIND
Planning includes not only when and to whom you intend
to sell or transition your business, but also ways to maintain
your company’s value through tax planning and being
prepared for unforeseen events. Through this process, you’ll
gain peace of mind that both you and your company are
ready for transition.
There are several factors to consider when planning to exit or
retire from your business:
• Business partners or key executives
• Your business plan
• Your family situation
• The structure of your company
• Your retirement plans
• Tax laws
• Your health
• Business debt
• Market conditions
Most business owners will only ever sell one business and as
a result of that will not have the experience of the numerous
challenges and pitfalls involving finance, legal and taxation
issues that impact the business sale process and outcome.
Understanding the value of the business in the open market
and ensuring the right mix of elements will lead to the key
objective of maximizing the value on the sale.
THERE IS ONLY ONE SALE THAT MATTERS
Despite plans to exit their firms within the next decade, few
business owners have developed a formal succession plan;
that could greatly diminish their returns on a business sale. It
is vital to plan ahead with the exit planning process several
years in advance to ensure all the key elements are in place.
In this document there are several sections and chapters to
be a guide and resource for business owners to facilitate and
manage the outcome.
WHY DOES IT TAKE A TEAM?
Selling a business is one of the most complex transactions
imaginable and requires a diverse team to enable a
satisfactory result. Deal success requires having the right
team on board including:
• Accountant
• Valuation specialist
• Mergers & Acquisition lawyer
• Mergers & Acquisitions specialist
• Marketing team
• Wealth Management
Each of these specialists will play a pivotal role to steer your
transaction from concept to completion. It is vital that the
selection process of the team be assessed for their prior
experience in transactions involving Mergers & Acquisitions.
An important element to remember is that the buyer
will have a similar team representing them during the
negotiation process; therefore selecting the best quality of
team members will be a determining factor in achieving the
best value and terms.
“Insanity is doing the same thing over and over again and expecting a different result.”
- Albert Einstein
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TRANSITION PLANNING GUIDE