Sooner or later, every business owner will exit his or her business. It might be uncomfortable to consider, but sooner or later, you WILL leave your business. You may leave due to retirement, disability, or even business failure. Unfortunately, many business owners believe they can worry about an exit plan "later" only to find that later has become too late.
You have spent money, time, blood, sweat, and tears to build your company. Your family and your employees have relied on your leadership, guidance, and hard work as you have built your company over the years. The business you have created is your key asset in life. Don’t squander its value at the most critical time of the business lifecycle – the exit!
Business owners know how to run their companies. They have sales forecasts, marketing plans, financial projections, and budgets. Business owners also have key questions about their business, such as:
An Exit Strategy helps you take these questions to the next level:
Achieving a successful exit from your business requires a multi-phase process. All businesses should have a planned exit. Continuously harvesting cash from the business extracts all value from the business, and passing the business to the next generation requires a successor and careful tax planning. Choosing to sell your business to an outside third party requires business execution and planning. While all exit scenarios are possible, the most successful exits will be carefully planned in advance.
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We encourage you to contact the Abraxas team today for a frank, and critically important, discussion of your exit planning options.
A succession plan is a form of an exit strategy where your exit strategy is built around people already identified, typically your management team or your children.
The goal of a succession plan is to position your key managers and/or children to be successful after your transition out of the company. With planning, all players are best positioned for an effective transition.
To successfully exit a business, you will need a team. The core of your exit team is you. You will then need a professional who can help you understand how to best position your business for an exit and you will need an advisor who can best position yourself and your family financially.
In addition to this core group, other experts may be needed, depending on your particular circumstances. For instance, an employment attorney may be needed to implement key employee agreements. Or, a CPA may be required to review the financial records to identify areas that needs to be better managed from an accounting perspective.
Naturally, each business is unique and will have different needs throughout this complex process. At Abraxas, our role is to coordinate the activities of these advisors to assure that the team is working to achieve your particular objectives.
Every business owner needs an exit strategy. It's reality - at some point you must leave your business, either through retirement, financial crisis, disability, or death.
Having a well-thought out Exit Plan and then diligently implementing that plan gives you options about how to best transition your business to meet your financial and your personal goals when the time is right.