Exit Planning

Kelly is a Certified Exit Planning Analyst (CEPA) as designated by the Exit Planning Institute. A good exit plan considers business, personal, financial, legal and tax questions involved in transitioning a business. It includes contingencies, maximizes the value of the business and minimizes taxes.

The exit planning process can involve many professionals, including a financial planner, attorney, CPA, insurance professional and intermediary. We help manage the process so the right professional is involved at the right time and are aligned with the goals and objectives of the owner.

Using a structured approach, our services include:

Baseline Valuation: A baseline business valuation is one of the first steps in the exit planning process. We determine the value of the business as if it were transitioning today. A valuation done early in the process helps set expectations and focus management on areas that will improve the worth of a business before a transition.

Readiness Assessment: We complete an assessment of the owner and business to determine how “ready” both are for transition.  The assessment covers all areas of the business, including quality of earnings, management depth, and customer concentration. The readiness assessment combined with the valuation, guides future activities.

Action Plan and Project Management: Based on the results of the valuation and readiness assessment we work with the owner to develop an action plan to prepare them and the business for transition. It is focused on removing risk, increasing income and developing a personal financial plan.

Risk Mitigation and Contingency Planning: The untimely death or disability of a business owner can result in a fire sale of the business. We work with owners to ensure these safeguards are in place, including buy-sell agreements, key-man insurance and life insurance.

Exit Option Assessment: We help assess the owners’ transition options, such as an intergenerational family transfer, management buy-out, sale to existing partners, ESOP, sale to an outside buyer or orderly liquidation.

Transaction Assistance: We interview prospective business brokers or investment bankers, prepare a pitch book for prospective buyers and compile due diligence materials.

Certified Exit Planning AdvisorMember, Exit Planning Institute