It may seem like there are an infinite number of paths available in a business exit plan. In reality, they boil down to eight common types. Each path has advantages and disadvantages, as outlined by this white paper.
For example, sometimes succession planning is less about planning based on the business’ characteristics. Instead, it’s more about navigating the objectives of several owners and trying to find a compromise that works well for everyone involved.
Of course, this works best when you’ve started planning your exit well before you are ready to leave the business. Each owner needs to detail their objectives. You need to then assess the fair market value of your business, project cash flow, and weigh the tax consequences of each exit path before choosing one to pursue.
If you are trying to decide which business exit plan makes the most sense for your business, read our white paper. It details the eight common exit paths. You can then weigh the paths against your owners’ objectives.