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Exit Planning: The Post-Exit Stage of Exit Planning.

The Post-Exit Stage of Exit Planning.

We get a lot of questions about exit planning, and they generally fall into two categories: Pre-Exit and Post-Exit. In our last post, we looked at the pre-exit questions. Today, we’ll cover the post-exit questions.


Here are our answers to the top questions we get from business owners about the post-exit stage of exit planning:


  1. "Do I really need to sell for the highest value?"  Maybe not. Done correctly, exit planning should improve your outcomes. But if your personal financial plan is solid and you don't need the increased payout, enjoy your flexibility here. You are now free to engage in transactions that may not result in the highest payout, but may be more fulfilling from a personal standpoint, such as an employee buyout or a transition to family members. Few sellers demand top dollar from a family member or longtime employee. But if you have already sold for an optimal value, keep reading.

  2. "Will this kind of liquidity event harm my family? I don't want to ruin my kids or grandkids."  Good for you. The world needs more people like you. Now, think: How old will your kids be when you pass away, and they inherit (a portion of) your wealth? If you die at age 90, your kids are not impressionable high school students. Odds are that they have developed their own financial and emotional maturity. But if there are family members that you worry about spending wealth too fast, this is where a good financial advisor and trust advisor can help. Take the necessary liberty to set up financial plans and inheritance transition plans that don't burden loved ones with too much financial responsibility before their prepared. Of course, our next recommendation is that you prepare them. There are phenomenal, educational tools, and organizations that you can introduce to your kids and grandkids so that they can begin building the skills to manage family wealth in the future. Ask us if you need help here.

  3. "I've been doing this business for decades. What will I do without it? I'm afraid I'll lose my purpose." This is normal, and many owners feel this way. But remember, you have already been living into your purpose for years. Through the personal planning we’ve discussed in these posts, you have identified what you are good at, passionate about, and what others see as your best contributions. Chances are good that these skills and passions can be applied in many areas beyond business. One owner we know that sold his business to his son was passionate for years about developing employees. Now he has grandkids. They are now benefiting from the mentorship he gave to his employees over the years, and much of what they are learning is not and cannot be taught in school.  Another client has not yet retired, and his liquidity event is ahead of him. But he is already applying the same mentorship in his home and in his community via coaching opportunities with young men and women. Identify your Unique Ability™ (connect with Strategic Coach for more), and lean into that now, both professionally and personally.

  4. "What if I regret selling?" Write out your vision for your life post-exit. You must envision what you are going to do when you no longer have responsibility over the business. Engage your family in the personal planning. Talk with your close friends. Practice before you exit by taking extended time off and filling that time with the things that you think you want to do when you sell. Then adjust as needed. 

  5. "What if I sell to my kids and the pressure of running the business is too much for them to handle?"   Neither your identity nor that of your children may ever be tied to the title “business owner”. Ideally, your kids have seen you work as part of a team in the business and in your exit planning, rather than as a rugged individualist. Encourage them often to use the benefits of a team. But as they take over, remind them that they're worse in the family is not tied to their status as the business owner. They will own the business for only a period of time, before passing it on to someone else.  Ultimately, however, you don't control this. And as grown adults, the next business owners have to evaluate for themselves if the stress is too much, or if it is simply normal and healthy part of running a business.


These are the main questions we get, and even when clients don’t vocalize them, we often learn later that these were the main concerns. But we see that when owners take their business planning and personal planning seriously, these challenges become the building blocks of a better future.


And we think it will work for you too.




Any opinions are those of Timothy Weddle and not necessarily those of Raymond James. The foregoing information has been obtained from sources considered to be reliable, but we do not guarantee that it is accurate or complete, it is not a statement of all available data necessary for making an investment decision, and it does not constitute a recommendation.


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