Exit Planning to Increase Your Business Value and Decrease Your Tax Bill
Proper exit planning can both minimize your tax bill and increase the value of your business.
Too often, owners only think about exit planning once they’ve already decided to sell – sometimes after engaging with a buyer. By then, opportunities have been lost and money is left on the table.
If your sale is already imminent, we can still help structure it in the most tax-efficient way possible. There are proven strategies to reduce your tax burden and keep more of the proceeds in your pocket rather than sending them to the IRS.
But the best results come when exit planning is viewed as a process, not an event. Starting early gives you time to strengthen profitability, reduce risk factors, and position your business for a higher sale price.
Micah Fraim is a Certified Exit Planning Advisor (CEPA). CEPAs work with business owners to:
- Identify and reduce risks within the business
- Increase attractiveness for buyers
- Minimize the tax burden on the sale
- Prepare owners for life after exit
Most Business Owners are Unprepared for An Exit
The Exit Planning Institute 2023 State of Owner Readiness Survey highlights the gap:
- 75% would like to exit their business in the next 10 years
- Only 34% have a formal advisory team in place
- Only 41% had a written plan in place for what to do after they exited
- 68% had sought outside advice on their exit
- 70% felt they understood all of their exit options
- 75% profoundly regret selling their company within just one year after selling it
(As worrying as some of those figures are, they still represent significant improvements from the original 2013 survey. In 2013, 83% did not have a formal exit plan, 34% understood all of their exit options, 79% had no written plan in place, etc. This shows the increased importance business owners are placing on exit planning and the value it can provide to them.)
Let’s Talk Strategy
Exit planning is simply good business strategy. By starting years in advance, you can increase profitability, lower your tax burden, and often significantly increase the ultimate sale price.
Schedule your consultation today and start building an exit strategy that protects your wealth and maximizes your business’s value.
