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Business Transition Planning

Exit Strategy Planning - Exit Plan / Exit Planning. Selling a Business / Buying a Business

What is business transition “exit strategy” planning?

Business Transition Planning is a lot like estate planning. It is preparing a business for the time when its owner or owners will no longer be around.

Business Transition Planning is a process of building, managing, protecting, using and eventually transferring assets or stock in a tax efficient proactively planned manner. The business owner builds, manages, protects and benefits from the business and eventually transfers the business either in an involuntary reactive process or in a voluntary proactive process. Effective Business Transition Planning is a voluntary proactive process designed to assist the business owner in meeting his/her personal objectives through the consideration and integration of financial and non-financial information.

Is developing a business transition “exit” plan beneficial?

For business owners, their business most often is the center of their family’s financial infrastructure providing the majority, if not all, of the family’s current and future income. Business owners should not take a chance on losing business value, creating risk exposures or paying unnecessary taxes when these areas can be managed through proactive oversight and planning.

Whether buying a business or selling a business, the following are a few realities of Business Transition:

• Transition very rarely happens well or easily among small and mid-sized privately held businesses.
• Owners will not delegate
• Owners will not develop their people
• Owners tend do not develop transition plans nor talk about them
• In many cases the owners are the business or are tightly integrated into its operations
• When owners finally seek to develop a transition strategy, the above challenges appear “and are” often too complex and big for them to manage

Regardless of whether a business owner chooses to sell to a third party, sell to employees, or transition to family members, business transition planning helps a business owner gain greater control over the direction and future destiny of one of his/her most precious assets, the family business.

Does the ICBC provide business transition exit planning services?

The ICBC itself does not offer business transition exit planning services, but it does offer business transition exit planning training for its members.

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