MONETIZING THE VALUE
OF YOUR BUSINESS

How Do You Monetize The Largest Asset You Own?

You've spent a lifetime growing your business. Everyday you've sacraficed and risked everything. Well, you've made it. You've grown your company to a point where it is the largest single asset that you own. An asset that could provide financial freedom for the rest of your life. That's the good news.

The bad news is that we are all going to eventually leave our businesses. It's inevitable! Furthermore, you can't simply head down to the closest brokerage house, ask to liquidate the stock in your company and receive a check within three business days. Selling or transferring a closely held business is a difficult process. It requires planning and a collaborative effort from a team of well trained advisors that support your goals. 

Where do you start?

Early planning is essential. The starting point is understanding your goals. What do you want to do after you leave the business? Can you see yourself outside of this business? Are you dependent on the value of the business to maintain your post exit lifestyle? Based on the answers to those questions the path to exiting your business should become more clear to you. 

Typical exit strategies:

  • Sell to an outside party or competitor;
  • Sell to an investor or private equity group;
  • Sell to your employees (Employee Stock Ownership Plan);
  • Sell to a group of key managers in your business;
  • Transfer by using effective wealth transfer techniques such as gifting

The strategy you choose will be incumbent on the goals that you have set for yourself. For example, if you cannot see yourself outside the business and enjoy working but would like to take some of the financial risk off the table, then selling to an outside party would not be the appropriate path.


With Proper Exit Planning You Can Have Your Cake and Eat It Too!

Typical Issues That Must Be Considered In Your Exit Planning Include:

  • Business Value;
  • Tax Consequences of Sale (Improper tax planning can erode up to 55% of sales proceeds)
  • Financial Security Post-Exit;
  • Protecting the Wealth Until You've Monetized Your Business;
  • Considerations for Partners and Family Members;
  • Accurate Financial Statements to Present Your Company.

Learn more about exit planning and the steps you need to consider when transferring your business so you can leave on your terms.

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