Exit planning gets a lot of buzz but what is it really? Here’s an example of what could of, should have been done with proper planning.
Business owner tells me he wants to sell and be out within one year. Nice small business, growing, profitable every year, etc. He and his wife work in the business and two of his key employees are their sons. He told me the sons could probably run the business, they don’t have the money to buy it, and he needs to get paid for it to have money for retirement.
Take the Wayback machine (remember the Rocky and Bullwinkle Show?) and go back three years. Mr. Owner should have worked on a succession plan to integrate his sons more in to management and setup a financial plan for a purchase. There’s a great story about a similar situation and how the owners successfully handled it in my book If They Can Sell Pet Rocks Why Can’t You Sell Your Business (For What You Want?). If you want a complimentary e-version of the book let me know.