Exit plans are meant to be thought out well before they are needed. Whether you are preparing an exit plan for the future or selling your company soon, the team at Fricke & Associates, P.C. can help your process go smoothly. Your exit plan should maximize returns, minimize tax liability, and avoid errors. If you are ready to start formulating your exit plan, here are some considerations to plan for:
1. Prepare a Team of Professionals—At the beginning, you need to make sure you have a qualified team made up of financial planners, accountants, and attorneys prepared to assist everyone involved. The professionals at Fricke & Associates, P.C. are highly experienced with navigating the exit plan process and could be part of your team.
2. Establish Clear Expectations for The Buyer—Through the efforts of your team, you can get an accurate assessment of your company’s income and value. At this time, a contract can be drawn up to include sales terms. Your attorney can review the contract to make sure your interests are fully protected.
3. Get Your Documentation Ready—Beyond the contract, you will also need to prepare relevant documentation. Your books should be prepared for the transaction. You will also need to provide the buyer with financial history, including statements and tax returns. These details are crucial for the buyer for future comparison.
Whether you plan to sell your business or just transition your business to your family, you need a clear exit plan to protect your interests. By having an exit plan, if you become disabled or pass away before retirement, your business will live on and your family will receive the value they deserve for it. Being pro-active about exit planning will help preserve your company’s legacy. If you are ready to consider your exit plan, schedule a consultation with the team at Fricke & Associates, P.C.