Thoughtful Endings Pave the Way for Intentional Beginnings: Why Curating Your Exit Plan Today is Vital for Tomorrow

January 25, 2024
By Letitia Berbaum
Featured Post Image of Letitia Berbaum outside the Zandbergen Group Office

Building a business can be a labor of love. Often times it is the investment of a lifetime. Whether you are building a business you intend to pass on to a successor, positioning it for a merger with another business, or you intend to sell it in an acquisition at some point, a thoughtfully curated exit plan makes dollars and sense. While beginning with the end in mind is easier said than done, having a clear idea of what your long term goal is with the business as an asset is helpful in developing the right exit plan for your individual situation.

Succession and exit strategy planning provides a comprehensive roadmap to business owners, allowing them to exit on their own terms. Areas covered in an exit plan often include personal, financial, legal and tax related matters when a change in ownership occurs in a privately owned company. Planning for this point of transition allows for a clear and effective plan of action to be put into place, whether the business is looking to execute the move today or in several years from now. Many times, exit planning is put off until the transition is imminent. In these cases, there are often missed opportunities that could have been maximized had advance planning taken place.

Some key points to consider when developing an exit plan include:

-What entity or person do you want to sell your business to?
-What is the timeframe for when you would like this transition to take place?
-What is your business valued at and what would you like it to sell for?
-After taxes, how much money would be left for you upon the sale of the business?
-Is the final monetary gain after taxes enough for you to live comfortably on/retire with?

These are just a few of the important questions to consider when crafting and refining your exit plan. Each situation has its own unique set of parameters that must be considered in order to arrive at an optimal outcome. The sooner an exit plan can be outlined, the more time you will have to refine your succession roadmap. It can also become an evolving plan that you create and then modify as needed as you get closer to activating the next steps in the plan when the time transition arrives. Having a plan in place can provide much needed clarity and direction as a business evolves. 

Creating True Wealth requires applying true intention to all aspects of the business. From the start-up to the changing of the guard, investing time in creating a meaningful and lucrative experience is how business owners find fulfillment in business development. While we can never recover the time we invest as entrepreneurs, we can ensure that time well spent includes planning for the next chapter or season of our personal and professional lives. Planning for the end can seem daunting, however, if this process is managed along the way, the thoughtful ending can give way to intentional new beginnings, 

Zandbergen Group, a dba of Axxcess Wealth Management, LLC (“Axxcess”), a registered investment advisor. Advisory services are only offered to clients or prospective clients where Axxcess and its representatives are properly licensed or exempt from licensure. The information provided is for educational and informational purposes only and does not constitute investment advice and it should not be relied on as such. It does not take into account any investor’s particular investment objectives, strategies, tax status or investment horizon. The views expressed in this commentary are subject to change based on market and other conditions. For additional information, please visit our website at https://www.zandbergengroup.com/.

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The Zandbergen Group is a DBA of Axxcess Wealth Management, LLC a Registered Investment Advisor with the SEC. Bart A. Zandbergen, CA Insurance License #OA96242. Letitia S. Berbaum, CA Insurance License #OH19537. Zandbergen Group, LLC is a DBA of Axxcess Wealth Management, LLC (“Axxcess”), a registered investment advisor. Advisory services are only offered to clients or prospective clients where Axxcess and its representatives are properly licensed or exempt from licensure.