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The Five Steps to Your Business’s Exit Strategy Plan in Fort Worth, TX

Your exit strategy plan Fort Worth, TX is an opportunity for you to either sell your business in Fort Worth, TX and live your life on the profits or try your hand on greener pastures. Either way, selling your business is not like selling a car or a house. This process must always be handled by a trusted team of brokers and advisors. It may sound cliché but the first thing you should ask yourself before you sell your business in Fort Worth, TX is, “What am I trying to accomplish with this exit?”

The process takes time and careful consideration, in order to execute the exit strategy properly. Though the aim is to make the transaction as much profitable as possible, you should do so keeping in mind the structure of your business. You need to determine your business’s value, find out your goals, what kind of outcome you would like and finally seek the guidance of an expert to execute the exit strategy plan in Fort Worth, TX.

Often owners make the mistake of selling their business to the first competitor who comes along. They do so, without seeking help from their advisors and thus, making the mistake of foregoing their personal needs, market value and not exploring positioning strategies. Therefore, before making any big decision, consult with your advisor and make sure that you are on the right exit path. Following are five steps that will help you understand how an exit strategy plan in Fort Worth, TX takes place.

Step #1 — Defining Your Exit Strategy

Our exit strategy is planned around getting a high amount after paying fees and taxes. This can be achieved in a number of ways. Remember, selling the business is just one option. It is hard to sell something so important that you have nourished since infancy. You can either involve your family members in the business, if they are willing to take such a huge responsibility or you can choose one the following options:

  • Involving a partner and handing over the major responsibilities
  • Look for investors or international buyers
  • Going public
  • Liquidating part of the business by recapitalizing
  • Merging business to enhance marketability

If your personal wealth is tied in the business, then it is better not to liquidate the assets. Therefore, it is important to balance your interpersonal and financial goals before making an exit strategy plan in Fort Worth, TX.

Step #2 — Setting Goals

There’s a vast difference in completely selling your business and relinquishing most of the control to be a silent voter or shareholder. Though transferring it to family will be more beneficial but you will always be concerned about how its operation is running. Before deciding on an exit strategy plan in Fort Worth, TX make sure your value matches the market value. If its control you need, then you need to find the perfect balance between voicing your opinions after the transfer and the money. Your goals should be clear on what you will do once the business is sold.

Step #3 — Selecting Your Team and Examining Your Options

When goals are set, it’s time to re-visit the options available to you and hiring a team to execute the exit strategy plan in Fort Worth, TX. Each member of the team must have knowledge and skills on how to sell your business in Fort Worth, TX. They should be able to guide you through the entire process and inform you of the pros and cons of every type of transaction. Some of these transactions include:

Internal Parties

  • Family – Gifting Program
  • Employees – Stock Ownership Plan
  • Co-Owners – Buyout in Your Favor
  • Charity – Trust

External Parties

  • Initial Public Offerings (IPO) – Selling at Market Value
  • Industry Buyers – Acquisition
  • Financial Groups – Recapitalization

Step #4 — Full Financial Disclosure

Full financial disclosure is one of the hardest steps in an exit strategy plan in Fort Worth, TX. Gathering all your financial records and baring them to the buyer can be physically and mentally challenging. It’s like opening yourself to strangers and allowing them to pass judgment.

However, remember, the more open you are about your business’s financial state or any ‘creative accounting’ you have done over the years to boost its sales, the easier it will be for the buyer to evaluate your business and give you a price closer to the market value. Some of your ventures, though not that profitable, might appeal to the buyer and become the reason why he agrees to buy the business at your value. You never know, being transparent can offer you a lot of benefits that is if you have made sound financial decisions over the past years.

Step #5 — Positioning Strategies

Now that you have found out your goals, assembled a team and looked over your options, it’s time to sit down with your advisor and position the strategies. Look over the situation from all angles and see what option is bringing in the most profit. However, do not forget about tax. While one option might look more profitable than the other, the taxes on it might lower the amount when it finally reaches you.

When the sale has finally gone through, do not leave the business for the new owner to handle it immediately. Stay around for a few days and explain the inner workings of the business to the new owner. It’s a good business practice and is recommended by many advisors to offer encouragement to the new owner that they made the right decision. Some people believe that hiring a broker might rob them a percentage of their profit. That is not true! This percentage amounts to only 3% of the sale price and benefits you in getting a higher value, one you would not have been able to get on your own.

Kirksey Business Brokers is a certified company that helps people sell their business or a buy one that is well-established. They also provide loans with some of the best rates in Texas. To know more about their services, call at 817-637-1508.

OUR VAST NETWORK OF FINANCIAL CONTACTS EXPEDITES FINANCING AND CLOSING THE DEAL.