The buzz phrase is "Exit
Strategy" – and you have one whether or not you have a plan in
place.
Your financial planner says you should have an exit strategy; your lawyer says you have an exit strategy; your spouse says you should have an exit strategy. They may not say it in
just that way. The financial planner says you need to diversify your assets; your lawyer says you need to spread your risks and your spouse asks, "When are we going to spend more time
together?"
In planning your exit strategy, you will have to look at many
areas of the business and your personal life as it covers:
- Estate planning
- Retirement plans
- Financial requirements
- Mergers/acquisitions/sale
- Heirs
- Liability issues
- Current management capabilities
- Tax planning
- Timing and phasing
Every privately held business will be transferred. The
ownership will change by selling, liquidation, bankruptcy, going
public, transferring to a relative, donating to charity or
merging with another company. Each of these transfers have
different tax, family and lifestyle consequences for the owner.
Call your nearest CFA office to implement an exit plan
that will assure that you end with the maximum CIP (cash in
pocket). |
