Exit Strategies For Business Owners

Overview
The Importance Of An Exit Strategy Improving Your Succession Plan

Making Your Your Exit Strategy Fit Into Your Retirement And Estate Plans
Working With Your Entire Team Of Tax, Legal And Other Professional Advisors

What Is An Exit Strategy?

A Review Of Your Succession And Retirement Plans
Identifies Problems Before They Arise Coordinates Your Succession And Retirement Plans Into Your Overall Estate Plan

The Importance Of An Exit Strategy

The Four Sources Of Retirement Income

Social Security Pension & Nonqualified Plans Personal Savings

Work

Improving Your Retirement Plan

Business Options
Sale Gift
Liquidation
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Improving Your Succession Plan

Forced Sale Or Planned Sale

Situation:
Tom Smith plans to sell his business when he retires.

Issues:
Who is this buyer? Will the buyer offer a fair price? Will the purchase price be paid in cash? What happens to Toms retirement plans if the payments stop? What happens if Tom dies, becomes disabled, or wants to retire early?
Improving Your Succession Plan

The Planned Sale

Protects The Value Of The Business Investment Available If There Is A Willing Buyer Or Successor Provides Benefit To Both Parties

Improving Your Succession Plan

Gift Planning
Some Owners Plan To Give Away Their Business During Life Or At Death
Family Members Must Be Willing & Capable Of Running The Business Requires A Careful Analysis Of Retirement, Estate Planning, & Family Income Needs

Gift Plans Must Be Reviewed On A Periodic Basis

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Improving Your Succession Plan

Liquidation Planning
Not All Succession Plans Will Be Successful
Liquidation May Occur During Life Or At Death

Liquidation Typically Means A Substantial Loss Of Business Values

Prudent Planning Should Prepare For The Contingency Of A Business Liquidation

Improving Your Succession Plan

Liquidation Examples
Example One: The Successor Quits Before The Retirement Sale. The Owner Liquidates The Business. Example Two: The Owner Transfers His Business At Death To His Adult Children. The Adult Children Can Not Run The Business Successfully.

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Improving Your Succession Plan

Estate Planning
Complements Your Retirement & Succession Planning
Helps You Achieve Your Personal, Family, & Charitable Giving Objectives Makes Your Exit Strategy Successful

11

Your Overall Estate Plan