The Best Time to Plan an Exit Is Long Before You Need One.
Ask most business owners about exit planning and you’ll often hear the same response:
“I’m not ready to think about that yet.”
The problem is that exit planning is not something that begins a year before retirement.
Or six months before selling the business.
Or after receiving an offer.
The most successful exits are usually the result of years of preparation.
At CPAGamePlan.com, we believe exit planning should begin much earlier than most owners realize.
Because every decision you make today influences the options available tomorrow.
Every Business Owner Will Exit
This may be the most important truth in business planning:
Every owner eventually leaves the business.
The only uncertainty is how.
Possible outcomes include:
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Selling the business
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Transferring ownership to family
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Selling to employees
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Merging with another company
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Closing the business
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Unexpected disability or death
Exit planning is not about whether an exit will occur.
It is about preparing for it.
The Biggest Mistake Owners Make
Many owners spend decades building value.
Very few spend time preparing to transfer that value.
Common assumptions include:
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“I’ll figure it out later.”
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“Someone will buy it.”
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“My children will take over.”
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“The business will fund retirement.”
These assumptions may prove true.
Or they may not.
Without planning, they remain assumptions.
The Business Is Often the Largest Asset
For many owners, the business represents:
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The largest asset they own
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Their primary source of income
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Their retirement strategy
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Their financial legacy
That makes exit planning one of the most important financial conversations they will ever have.
Exit Planning Is Not Just About Selling
Many people confuse exit planning with business sales.
Selling is one possible outcome.
Exit planning is broader.
It includes questions such as:
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What is the business worth?
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What does financial independence require?
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Who might take over?
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What tax implications exist?
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How will employees be affected?
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What happens after the transition?
These questions deserve attention long before an exit becomes imminent.
Understanding Business Value
One of the first steps in exit planning is understanding value.
Many owners have never completed a formal valuation.
As a result, they often:
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Overestimate value
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Underestimate value
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Misunderstand what drives value
Business value is often influenced by:
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Revenue
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Profitability
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Cash Flow
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Systems
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Leadership
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Customer Concentration
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Risk
Understanding value helps owners make better decisions.
Financial Independence Comes First
A successful business exit is not necessarily a successful retirement plan.
Questions worth asking include:
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How much income will I need?
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How much wealth exists outside the business?
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How much value must the business generate?
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What happens if the sale price is lower than expected?
Exit planning and retirement planning must work together.
Explore:
Tax Planning Matters
The structure of an exit can dramatically influence outcomes.
Questions may include:
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Asset sale or stock sale?
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Installment sale?
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Family transfer?
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Charitable planning opportunities?
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Retirement plan opportunities?
The earlier tax planning begins, the more options generally exist.
Explore:
Succession Planning and Exit Planning
Not every exit involves an outside buyer.
Many owners hope to transfer the business internally.
Potential successors may include:
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Family members
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Key employees
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Partners
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Management teams
Successful succession planning often requires years of preparation.
Leadership development takes time.
Trust takes time.
Transitions take time.
The Human Side of Exit Planning
Many owners underestimate the emotional side of an exit.
Questions include:
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Who am I without the business?
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What will I do next?
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How will my life change?
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What purpose will replace the role the business played?
Exit planning is not only financial.
It is personal.
Why Advisors Must Work Together
Effective exit planning often requires collaboration among:
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CPA
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Financial Advisor
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Attorney
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Valuation Expert
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Insurance Professional
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Business Consultant
Each advisor contributes a different perspective.
Together they help create a more complete plan.
Explore:
The Blueprint for Financial Success™
The Blueprint helps connect exit planning to the larger planning process.
Exit planning influences:
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Retirement Planning
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Tax Planning
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Estate Planning
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Risk Management
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Legacy Planning
The Blueprint encourages business owners to consider all of these areas together rather than independently.
Explore:
The Financial Planning Gap Analysis™
Many owners discover that the greatest risks are not visible until someone intentionally looks for them.
The Financial Planning Gap Analysis™ helps identify:
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Succession Gaps
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Retirement Gaps
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Tax Planning Gaps
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Estate Planning Gaps
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Exit Planning Gaps
The goal is not to predict the future.
The goal is to prepare for it.
Learn More:
Start Earlier Than You Think
Most successful exits have one thing in common:
Preparation.
The owners who achieve the best outcomes typically begin planning years before they expect to leave the business.
They create options.
They build flexibility.
They increase value.
And they give themselves time to make thoughtful decisions.
That is why exit planning starts earlier than most business owners think.
