Introduction to Exit Planning: 8 Key Options to Consider | Bay Area Consultants
by Steven R. Allison, CEPA, Managing Partner, Business Exit Strategies at S.R. Allison, Ltd.

July 2020

Did you know Baby Boomers will transfer ownership of over TEN TRILLION DOLLARS in closely held businesses throughout the next decade? Are you one of them?

Whether you want to fund a retirement lifestyle, maintain a community presence, or simply create more spare time for yourself, you can achieve your personal goals while maintaining the business legacy you have built. Consider rewarding loyal employees, benefiting charitable interest, or even staying involved in your business at a level you determine. Clarifying your timing, financial expectations, and identifying ownership succession are three very basic goals that need to be established when planning your business exit strategy.

8 Exit Options to Consider

1) Keep Ownership “In the Family”

2) Sell to Other Shareholders

3) Sell to Management (MBO or Mgmt Buyout)

4) Employee Stock Ownership Plan (ESOP)

5) Sell to a Third Party

6) Recapitalize (Refinanace)

7) Go Public

8) Liquidate

As business owners you already know the key role which timing plays in the future success of your business. Now is the time to determine how your legacy will live on through the success of your business, even after you leave it. Starting the planning process 3-4 years before the transition is important to ensure all necessary financial information is not only compiled but consistent. Waiting until the last minute could leave money on the table, as buyers may sense urgency and could attempt to take advantage of this during negotiation periods.

SR Allison, Ltd.  works with AEIS, Inc. by providing business owners solutions which are tailored to their specific exit planning needs.

Disclaimer: Any compliance-related information in this blog is intended to be informational and does not constitute legal advice regarding any specific situation. Should you require further compliance assistance or legal advice, please consult a licensed attorney.

Photo Credit: Photo by Dustin Tramel on Unsplash

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