Leaving a business is something that every business owner will experience at some point in his or her lifetime. For the vast majority of these owners, this will be an event that only occurs once throughout their lives. If you’re a business owner who wants to maximize the value of your business before leaving it on your own terms, then exit optimization is the way you’ll need to go.
Exit optimization is an important part of the process because owners typically have anywhere from 50-90% of their net worth tied up in the business. Since most businesses do not sell these days for what the business owner likely expects, this can create an unfortunate and undesirable situation.
Though it might seem insane to a person who has never owned a long-standing business and doesn’t know what it often entails, exit optimization is something that an owner needs to start thinking about sooner rather than later. And by sooner, we mean that planning should begin anywhere between three and ten years before leaving the business. This will provide the time needed to ensure optimization before exiting.
Although there are plenty of business owners who will end up owning and operating multiple businesses throughout their lives, that is not true with most. This means that exiting a business will typically be a once-in-a-lifetime event. We will ensure that it becomes a special and memorable affair.
When you finally leave a business, you certainly don’t want to be forced out or feel an obligation to leave. By planning your exit and optimizing your business’s value ahead of time, you are leaving how you want and when you want. This is the optimal position to be in, and Iron Wheel Solutions will make it happen.
Most business owners don’t have as much cash on hand as they’d like because it’s connected to the business. With as much as 50-90% of an owner’s net worth often tied to the business, exit optimization should be a part of your plan, as it allows owners to leave the business with more personal value intact.
Even with careful planning, it is impossible to predict the ups and downs that might occur once an owner begins to execute a graceful and lucrative exit. While you can’t control certain elements like the tax code, you are in control when it comes to the preparation of your business prior to exiting. And the sooner you begin to prepare, the easier the entire process will be.