322 North Shore Drive, Suite 200
Pittsburgh, PA 15212
(412) 912-1600
322 North Shore Drive, Suite 200
Pittsburgh, PA 15212
(412) 912-1600
Business Transition Planning
What are you doing to plan for the most significant financial event of your life?
Are you aware of the value you'll need to receive for your business to achieve the financial freedom you desire?
Do you have a plan in place to build and protect your business's value?
Do you know how to best convert the value of your business to cash?
At Blackstone Business Advisors we help you answer these questions. We then help you create and implement a plan that will allow you to exit your business on your terms, when you want, for the money you need and to the person you choose.
Contact us to learn more.
Why We Plan
If you’re like most small to medium sized business owners, your business accounts for a vast majority of your wealth.
As a result, the ultimate exit from your business will likely be the single most important financial event of your life.
Per the Business Enterprise Institute’s (BEI) 2019 Business Owners Survey, 81% of business owners want to stop working in their business in the next 10 years. However, approximately 80% of business owners have not created a plan to ultimately transfer/exit their business. Regardless of any survey results - there is one thing for certain - 100% of business owners will some day leave their businesses, whether planned or otherwise.
So what is Transition/Exit Planning and why do I, as a business owner need to consider it regardless of where I am on my business roadmap?
1) What is Transition/Exit Planning and how is it different from Business and Succession Planning?
- Business Planning - focuses on running, operating & growing the business.
- Succession Planning - focuses on the transfer of leadership, management and/or ownership of the business (i.e. the goals and objectives of the business).
- Transition/Exit Planning - focuses on the owner’s future objectives for themselves and their families (i.e. the goals and objectives of the owner).
Although owner focused – a proper transition/exit plan encompasses all three in a comprehensive process to ensure your objectives are met.
A successful transition/exit plan maximizes the financial return, minimize tax liability, plan for contingencies and increase the likelihood of a successful transfer of the business.
A fully comprehensive plan is best done well in advance of the planned transition/exit – usually several years in order to ensure your ultimate goals are met.
2) How does Transition/Exit Planning help me as a business owner identify and reach my goals?
Accurate goal setting is fundamental to the Transition/Exit Planning Process and doing so provides three essential benefits to you as the owner.
- Goals Drive Action Toward the Desired Outcome – Most business owners have not spent the time to consider under which they would happily leave their businesses. Even if they did few know how or where to start in making their exits a reality. The first step in any Transition/Exit Planning Process is to clearly define the owners Foundational Goals, Universal Goals and Value-Based Goals.
- Goals Give Owners Road Maps – Goals help owners envision the road that it takes them from where they are to where they want to be. This helps alleviate the initial anxiety about Transition/Exit Planning as the road map illustrates how you can systematically reach your goals, gauge how close or how far you are from achieving them and keep control of the trip.
- Articulating Goals Eliminates Inconsistencies – It is not uncommon for owners to hold conflicting goals. For example, an owner may want to leave the business in five years, continue her income of $300,000 and transfer the construction business to her son who is in the sixth year as an undergraduate majoring in French literature. Conflicting goals can cause an owner to forestall any planning because they don’t think there is an acceptable path forward and procrastinate because they are goal-conflicted. Articulating goals reveals these conflicts and allows a planning process to address them.
3) Why do I need a Transition/Exit Planning advisor my attorney (CPA, Insurance Provider, Financial Planner, etc.) can do all this?
While we are sure your attorney, CPA, Insurance Provider, Financial Planner, etc. are very qualified individuals. What we have found that most of these professionals are excellent when it comes to working within the scope of their profession.
But do you think your attorney could do a future cash flow projection for the business?
Could your CPA produce the legal documents needed for the sale of the business?
How about your Insurance Provider? Could they develop a certified valuation of your business that would stand up to the scrutiny of the IRS?
Most professionals do great work in a relatively narrow field. As Certified Exit Planning Professionals (CExP) we oversee the entire process to make sure each professional provides the appropriate documents at the correct time. We also bring with us the tools and network of resources to ensure you get the plan that is best for you, then ensure it gets implemented. In other words, we develop your plan, coordinate everything and give you the peace of mind of knowing that everything is under control.
Our Process
Planning for your ultimate business exit is important. Thinking about all the moving parts can be overwhelming. There is a way to approach this one step at a time.
Click the images below for a full description*
Our Proprietary Seven Step Transition Planning Process
Our Process
Planning for your ultimate business exit is important. Thinking about all the moving parts can be overwhelming. There is a way to approach this one step at a time.
Click the images below for a full description*
Our Proprietary Seven Step Transition Planning Process
Get Started
Before You Choose Where You Want To Go – Let’s Figure Out Where You Are
Register Below To Access Our Complimentary Assessment Questionnaire
Our assessment questionnaire evaluation only takes a few minutes to complete and consists of some high-level thought-provoking questions from each step of our proprietary Seven Step Transition Planning Process. We’ll then provide you a complimentary assessment report that summarizes some areas where you may need to focus on to best plan for likely the most significant financial event of your life!
Go ahead — take the first step
By executing on a transition/exit plan, you not only start to design your transition/exit from your business – you ultimately build a better and therefore more successful business along the way.
Take the assessment to find out:
Where You Are Today
Key Areas To Focus On To Reach Your Big Business Goals
Contact Us Today!
322 North Shore Drive, Suite 200
Pittsburgh, PA 15212
(412) 912-1600
The information in this material is not intended as tax or legal advice. It may not be used for the purpose of avoiding any federal tax penalties. Please consult legal or tax professionals for specific information regarding your individual situation. Some of this material was developed and produced by Blackstone Business Advisors, to provide information on a topic that may be of interest. The opinions expressed and material provided are for general information, and should not be considered personalized investment advice for compensation.