Brown Smith Wallace LLC

Exit Planning

Exit planning is a process designed to help a business owner successfully withdraw from his or her business and plan for the next stage in life. This process is generally a team effort, consisting of advisors to the business and to the owner personally. There should always be a quarterback, however, who gets the full picture and is able to coordinate the effort toward achieving the owner’s goals. Our quarterbacking process involves:

Step 1: Setting owner goals and objective(s)

• Determine the owner's retirement goals
• Determine the owner's income needs and goals  
• Determine the owner's timing to exit
• Determine the owner's desired form of business transition
• Outright sale to third party
• Sale to family members
• Sale to employees

Step 2: Prepare a business valuation based on the current state of the company

This is key to determining whether the owner's goals are realistic.

• Determine if the owner's income desires are achievable
• Determine the owner's personal net worth, including the company's value
• Determine methods of enhancing the company's value

Step 3: Design an exit plan and strategy to achieve the owner's goals

• How goals will be achieved
• Team responsibilities 
• Financial plan
• Tax strategies
• Transition
• Contingency planning

Step 4: Wealth preservation

• Integrate estate and tax planning 
• Investment of proceeds 
• Design positive tax strategies related to the transition of investment of proceeds