Exit Planning

Depending on the size of your business, exit planning can mean thousands or even millions of dollars that you can put in your bank account or leave on the table. Most business owners are completely engulfed by the challenges and opportunities of forming a new business, and then by years of running it, with little time to think about or prepare for an exit strategy. And yet the business is usually the largest part of an owner’s net worth.

When you’re ready to exit, who will buy your business? Should you transition it to your children or other family members? Should you sell it to management or employees—or to a third party? Should you consider going public? In any of these scenarios, or others, you need to plan well in advance of your anticipated exit to maximize the value of your business.

Often circumstances change over time, so the exit option you think you want may not be the one that works best in the end. Early planning enables you to be flexible in developing your exit strategies and makes your business attractive to a range of possible buyers.

We understand this and we have the expertise and experience to help business owners and investors realize the benefits of early planning. We know because we have prepared and sold businesses for many years as company executives, business owners and trusted advisors.

The Benefits of Early Planning

Exit planning is a strategy like every other business strategy, which means that achieving your goals is a process that requires planning and discipline. Quality businesses are sold at higher valuations; and taking the time to ensure that your business is the best it can be maximizes its value and your profits. The value of your business is influenced by numerous factors that need your early attention, such as:

• Your performance history, especially in terms of revenue, cash flow and profitability
• Your current financial projections
• Opportunities for growth
• The depth and quality of your management team
• Levels of customer and vendor concentration
• Audited or reviewed financial statements
• Number of add-backs (i.e., extraordinary or one-time expenses)
• Presence of uncertainties from unresolved disputes or issues
• Potential due diligence issues
• The condition of your books and records
• The strength of your professional advisors

With a wave of Baby Boomers set to retire over the next few years and their need for liquidity, there will be an extraordinary number of businesses for sale. Those who have their exit strategies in place won’t be lost in the crowd, but will be well-positioned to benefit from the opportunities to come.

Experience and Reputation Make a Difference

The experience and expertise of your professional advisors can make a difference in how well prepared you are for your exit, as well as a buyer’s perception about your business and how it is valued. Hein is a well-known and respected name in the business community, which increases the confidence potential buyers have in your business. Hein professionals have both broad business backgrounds and experience, and specific expertise in:

• Exit planning
• Business strategy and performance improvement
• Mergers and acquisitions
• Sell-side or reverse due diligence
• Federal, state, local and international tax consulting and compliance
• Financial and accounting advice and reporting
• Internal controls, processes and systems
• Information technology
• Risk management and compliance
• Estate planning

Whether your business is large or small, simple or complex, we understand and can advise you on the exit planning process and the critical issues that affect your exit strategy; and, no matter the circumstances, our knowledge, skills, and experience make the exit planning process not just easier, but better.

By virtue of our reputation and established relationships, we can put together and quarterback a quality team of Hein professionals, attorneys, investment bankers, wealth advisors, insurance brokers and other professionals. We look at your business holistically, and provide the counsel you need to meet your personal and business goals. By bringing the team together early in the planning process, trusting relationships develop and ensure a more efficient transaction, smoother exit, and increase the likelihood of a top-dollar sale.