Charles S. Wilson, CPA/CFF, CGMA, CBEC | CERTIFIED BUSINESS EXIT CONSULTANT | 281-993-4530 | charlie@wilsonaccounting.net
         

Selling vs. Exiting Your Business

 

[fname], many business owners believe that they will 'exit' their business by 'selling' the business. They incorrectly believe this to be the ONLY way to exit a business. This can prove to be an unfortunate misunderstanding for much of a business owner's wealth is tied to their business, and a firm grasp of the many exit options could literally mean millions of dollars in additional wealth preservation.

For the business owner who understands that an 'exit' from their business could occur in many different ways, a world of possibilities opens up. Business exit strategies are 'planned exits over time' and not necessarily 'selling' the business.

It therefore stands to reason that the initial step in forming an exit strategy includes learning the difference between an 'exit' from the business and a 'sale' of the business.

 

This process requires that you ask questions not only about your business sale and how much money you want to get from it, but also what you are trying to achieve. This includes questions about your personal situation and what type of results you would like to see from this business exit in order to help accomplish your overall goals in life.

An Exit Strategy considers aspects of a business transition that go beyond the sale. For example, when a business owner 'sells' their business, they generally forfeit strategic and financial control to the buyer. The fact is that 'control' is generally a large issue for many owners, and keeping control of one's business (and destiny) is a driving factor in the day-to-day decision-making process.

 

Therefore, the business owner who perceives 'selling' their business as the only option, will often times do very little to prepare for their departure because they don't want to focus on losing control. Unfortunate consequences can occur when planning is disregarded in this manner.

As the Chart above illustrates, the benefits that an 'exit strategy' can provide include:

- Various transfer options
- Internal transfers
- A controllable process
- Control over taxes and fees, and
- Personal and corporate objectives driving the decision-making process

These combined differences make the larger point that an 'exit strategy' can be done over a long period of time, without the time-sensitive influence and pressure that comes from the 'sale' of a business.

An exit strategy analyzes the pros and cons of different exit alternatives and concludes with the one that works best towards helping you achieve all of your goals - within the time frame of your choosing. Think of this as an advanced form of financial, retirement, insurance, estate, and business planning all wrapped into one business exit strategy plan.

Consider the formation of an exit strategy from your business today and join the growing number of business owners who are learning that 'selling' is not their only option.

 

As always if you need some advice, you're welcome to email me of call me here at the office at 281-993-4530.

 

Regards, Charlie

 

Charles Wilson, CPA/CFF, CGMA, CBEC

Charles Wilson, LLC

307 S. Friendswood Dr, Ste B-2
Friendswood, TX 77546
281-993-4530 (O)
866-567-3975 (F)
charlie@wilsonaccounting.net

   
         
         

         

Charles Wilson, CPA/CFF, CGMA, CBEC is a Certified Business Exit Consultant and is affiliated with Pinnacle Equity Solutions, Inc., an Exit Strategies Training and Solutions company.  Parts of the content in this email are taken from previous Pinnacle Equity Solutions, Inc's. newsletter library and website in accordance with Charles Wilson's certification in Pinnacle's Certification and Membership Program. All Copyrights are the properties of Pinnacle Equity Solutions, Inc. and Charles Wilson, LLC and their respective owners.