At some point in time every business owner will exit his/her company.
Most owners do little or no planning for one of the most important events in their life.
Why is this? Most owners are just too busy with day-to-day operations and they are just not aware of the vital importance of Exit Planning.
Business owners need to build and shape their company in order to attract the best buyers.
So Exit Planning needs to focus on these key areas:

• Maximize your company's value - There are obvious things like increasing earnings, increasing the demand for your products and/or services, and fine-tuning the company's infrastructure.
  Be sure to understand your business strengths, weaknesses, opportunities, and threats.
  
• Minimize taxes - The tax issue plays a huge role in the ownership transfer of your business.
  Be sure you elect the appropriate legal entity and corporate structure so you can avoid costly taxes.
  
• Facilitate due diligence - Due diligence is one of the important steps in the exit transaction process.
  It is when the business buyer has the right to inspect the business and test every representation.
  If it goes smoothly, it can expedite the process.
  If not, it could cause a buyer to re-negotiate the price and terms or, worst-case, it may un-ravel the deal completely.
  Proper Exit Planning ensures that the critical information is accessible, and accurately reflects the true condition of the company's sources of income, assets and liabilities.
  
• Ensure the survival and growth of the business - Exit Planning helps prepare the business to ensure the key assets are easily transferred, key employees are retained, and the revenues and earnings are sustainable post transaction.
  The higher the buyer's level of confidence that the revenues and earnings are sustainable and transferable, the more they are willing to offer for the business.
  

When do you start the process? Generally, the sooner the better, even if you are two or three years away from exiting your company.
Exit Planning will put you on the right track to maximize the value of your business.
To start the Exit Planning process, you need to assemble a team of advisors including:

• Attorney - The attorney should have experience in business transactions.
  An attorney will also be called upon for estate planning, tax planning, pre-transaction due diligence, etc.
  Consequently, it is best to work with a law firm that has expertise in all of these functions.
  
• Accountant - The Accountant or CPA not only generates your financial statements and prepares your tax returns, but also ensures that your accounting is done under Generally Accepted Accounting Principles (GAAP).
  Your CPA can suggest the appropriate level of financial reporting to attract the highest quality buyer, should your statements be Compiled, Reviewed, or Audited.
  
• Wealth Management Advisor - The net worth of many business owners is concentrated in the business.
  When ownership transfer occurs, the equity that the owner had in the company has been transferred to a more liquid form (cash, stocks, etc.
  ) and needs to be managed according to the owner's needs and wants.
  A Wealth Management Advisor will help plan your financial future.
  
• M & A Advisor - The M & A Advisor is your link with the buyer community.
  He/she should be able to evaluate your company and determine how it aligns with buyer criteria, and suggest ways to increase the value of your company.
  When your company is ready, the M & A Advisor can advise how to properly document the company to attract the best possible buyers.
  The best buyers may be public or private corporations looking for strategic or synergistic acquisitions, or financial buyers such as private equity groups looking to re-capitalize the company for growth.
  The M&A Advisor will package and market your company to the buyer community.
  During this deal-making process the Advisor will screen buyers for confidentiality, financial and business viability, evaluate offers,negotiate letters of Intent, and help facilitate due diligence and the closing process.
  
It is difficult for most business owners to allocate time to think about Exit Planning.
Most owners are optimistic, busily planning for the future growth of the company and dealing with day to day challenges.
By selecting the right team of advisors, the business owner can properly prepare their business without wasting valuable time.
In the end, with proper planning, they'll be able to complete the sale of their business with the best buyer in the market at the best value and terms.