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You, like most business owners, probably do not like to talk about your future beyond your business. Maybe you think your business is your future and planning an exit strategy can seem like you don’t care about the success of the company in the short term. Exit planning is something that you will begin considering when you are ready to retire, so as not to have your employees think you are getting ready to leave the business sooner than they thought. In reality, not planning for your eventual exit from your business is more detrimental to your success and the success of your company after you depart. An important role for a CEPA is to showcase the steps every owner can take to plan for their future successfully.
Exit Strategy is simply good business strategy integrated with personal and financial goals and objectives. An owner does not need to be actively in the process of exiting their business to begin planning for their life after their exit. In planning for a business exit or transition, you also build value in your company, mitigate risks associated with your business, and makes the timing of your future exit irrelevant. According to Chris Snider in Walking to Destiny, “By focusing on your approach to building a business with characteristics that drive value and integrating your personal and financial objectives into it now, you will have lots of options to exit on your timeline and terms”. Successful businesses can sell at any time and working with a CEPA vastly increases the value of your business at the point of sale.
A CEPA is part of a diverse team of advisors that assist you, the business owner, during your exit planning process. CEPAs, along with a financial planner, attorney, accountant, and potentially your spouse or family member, help coordinate business assets and determine your best exit option. It is nearly impossible for an unprepared owner to time the market correctly for a valuable sale. CEPA’s provide the resources to manage business value by using the Value Acceleration Methodology as well as a vast network of advisors in a variety of related fields.
There is no one “Right Time” to exit a business. But to be ready to exit your business at any time and receive the most capital from a potential buyer, you need to have a solidified exit plan in place. Find a CEPA near you and get planning for your future today!
