Follow Dallas Linkedin
Email Dallas Email
Financial
May 15, 2018

The Two-Pronged Approach to Exit Planning

Sponsored Content provided by Dallas Romanowski - Managing Partner, Cornerstone Business Advisors

When business owners begin to think about their business exits, they tend to focus on one specific goal they want to achieve.

Some owners focus on when they want to exit, some focus on how much money they want when they exit, and others focus on the person or group that will take over once they exit.

But what’s the process that takes owners from thinking about what they want, to acting on what they want?

In the context of exit planning, it’s important for business owners to understand the two-pronged approach that exit planning advisors take to exit planning. The first prong is the general prong, which focuses on a successful business exit for a business owner. The second prong is the specific prong, which focuses on the business owner’s goals and in turn defines what makes the business exit successful.

Generally, owners can expect an exit planning advisor to focus first on one overarching goal. This goal is the goal that drives the business owner’s desire to exit, so each general goal will be different, based on the owner’s goals. A common general goal is to exit the business with financial security. In fact, exit planning advisors do not consider an exit successful unless this criterion is met by the time the owner exits the business.

Specifically, owners should expect an exit planning advisor to focus on additional goals in order to help owners plan for their exits on their terms rather than their advisors’ terms. Those goals can include positioning owners to leave when they want and to transfer ownership to the person they want, among others.

The process behind planning to achieve these goals begins when exit planning advisors gather information about the business owners they’re serving. Only after an exit planning advisor has a clear idea about what a business owner hopes and wants to achieve will that advisor begin to quantify and qualify the resources necessary to achieve those goals.

When approaching a business exit, business owners should expect that their advisors can describe and compare different exit paths. After describing and comparing those exit paths, business owners should also expect an exit planning advisor to weigh the context of each business owner’s unique situation before suggesting an exit path.

Advisors do owners a disservice when they assume that they know which Exit Path owners want to take or assume that the owner’s interest in one Path is a final decision.

Once business owners and their exit planning advisors agree on the feasibility of the owner’s goals, exit planning advisors begin to implement strategies to work toward those goals. They do so with the help of their advisor teams, which are comprised of different advisors from various advisory fields.

These advisors focus on aspects of the exit plan specific to their fields of expertise and report to the exit planning advisor. By the end of the process, which typically takes five to 10 years, many business owners find themselves better positioned to exit their businesses on their terms, as decided at both the outset and throughout the exit planning process.

If you’d like to discuss how you can begin the process of exit planning or would like to know more about the process our firm uses to help owners exit their businesses, contact us today.

© Copyright 2018 Business Enterprise Institute, Inc. All Rights Reserved

As a member of the Business Enterprise Institute (BEI), Cornerstone Business Advisors is an authorized distributor of BEI’s content and Exit Planning Tools.

The Cornerstone team includes former C-Level executives, successful entrepreneurs and advisers who offer unmatched experience in delivering advanced, custom-tailored, results-oriented solutions for business leaders. We developed the Performance Culture System™ to help clients implement best practices and drive high performance throughout their organization. For more information, visit www.launchgrowexit.com, call (910) 681-1420 or email [email protected].

Other Posts from Dallas Romanowski

Bizjournalblockad
Ico insights

INSIGHTS

SPONSORS' CONTENT
Natalieenglish headshot

MODERNIZE OUR DOWNTOWN LIBRARY AND MUSEUM

Natalie English - Wilmington Chamber of Commerce
Web mcwhorter 0012

Building And Celebrating An Inclusive Entrepreneurial Culture

Heather McWhorter - UNCW Center for Innovation and Entrepreneurship
Ubs chadpearson headshotresized

The Three Dimensions Of Selling Your Business

Chad Pearson - UBS Decision Point Wealth Consulting

Trending News

Restaurants, Retailers Among 192 Businesses Receiving Pandemic Relief Grants

Staff Reports - Sep 22, 2021

Mayfaire Announces Opening Dates For New Stores

Cece Nunn - Sep 21, 2021

More Than 51 Acres Sell In Leland

Cece Nunn - Sep 21, 2021

New Restaurant Opening Saturday In Ogden

Justin Pope Williams - Sep 22, 2021

Custom Builder Moves Into New Office After Repurposing Former Church Building

Cece Nunn - Sep 23, 2021

In The Current Issue

Trailblazing Builder Hangs Up Her Hard Hat

Beth Pancoe, 81, became one of the first licensed female contractors in Eastern North Carolina in 1987 and built a company focused on histor...


MADE Winners: Functional Product Category

Cape Fear Solar Systems, ComfyChemo LLC and Craftspace Inc. are winners in the MADE Awards Functional Product Category....


Store Owners Share Basketful Of Hopes

Not only will it offer fresh, locally sourced meats, produce and dairy products, but the business will also have an open kitchen where baked...

Book On Business

The 2021 WilmingtonBiz: Book on Business is an annual publication showcasing the Wilmington region as a center of business.

Order Your Copy Today!


Galleries

Videos

Trying to Grow a Business?
2020 Health Care Heroes
2020 WilmingtonBiz 100