Source: CUSTOM HOME Magazine
Publication date: June 4, 2008
By Stephani L. Miller
John Brown, president of Business Enterprise Institute, a firm that trains business advisors to craft successful exit strategies for their clients, spoke on Tuesday, June 3, at the Directions08 Conference about exit planning for owners of building companies. Brown, also an author of three books on exit planning, outlined a seven-step exit planning process for business owners, and identified the most important ingredients of a successful exit.
Every successful exit from a company, according to Brown, includes a written plan based on the owner's objectives, an experienced team of advisors who will design and implement the plan, cash flow and a quantified business value, a strong management team, and time. It is extremely important that at least one of the team helping to craft the exit strategy has significant experience in such planning.
Time also plays an important part in exit planning; it is better to start planning for your exit from the company as early as possible to ensure you meet personal and business financial goals.
Brown's seven steps of exit planning are:
1. Identify exit objectives—determine your priorities in leaving the company.
2. Quantify business and personal financial resources.
3. Maximize and protect business value.
4. Decide to transfer ownership to third parties or
5. Decide to transfer ownership to company insiders.
6. Ensure business continuity.
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