The Seven Step Exit Planning Process™

Step Four - Ownership Transfers to Third Parties

Exit Planning Professional Role

• Reconfirm owner’s objectives and timing.
• Transition Planning Advisor Team, at least temporarily, to:
   • The Deal Team
        - Transaction Intermediaries
        - Deal Attorney
        - Audit CPA
   • Planning Advisor Team often returns after the transaction has closed.
• Facilitate gathering of information and coordination of Deal Team.

Attorney Role

• Tax analysis related to the proposed sale of company.
• Legal due diligence.
• Preparation and review of all transaction documents.
• Negotiation of a definitive agreement.
• Design and draft Sale Bonus plan for important employees.

OPPORTUNITY:
• Representation of owner/business in sale (generating fees of $30,000 to $150,000).
• Respond to post-closing indemnification claims.

CPA/Valuation Expert Role

• Provide financial and tax analysis/advice on consequences of alternative structures for transaction.
• Prepare 3-year audit or reviewed financial statements or other financial information as needed by buyer.
• Review/negotiate owner's financial and tax representations and warranties.

OPPORTUNITY:
• Provide consultation and analysis. (Fees generally between $5,000 and $25,000.)
• Receive finder's fee from the transaction intermediary.
• Negotiate financial transaction terms (when there is no transaction intermediary).
• Value the business or defend proposed valuation.

Financial/Insurance Advisor Role

• Participate in design and funding strategies for Sale Bonus plan.
• Introduce owner to appropriate Transaction Intermediary (investment banker or business broker).
• Determine whether owner's financial needs/Exit Objectives can be met by expected net sale proceeds.
• Provide planning continuity support.

OPPORTUNITY:
• Invest sale proceeds.
• Receive finder's fee from transaction intermediary.
• Investment income on proceeds from sale.
• Re-examination of estate plan.
• Funding key employee Sale Bonus/Deferred Compensation.

Consultant Role

• Participate in pre-sale positioning and preparation.
• Assist in post-sale integration.

OPPORTUNITY:
• Continuity of representation.
• Receive finder's fee from transaction intermediary.
• Preserve long-term role as a trusted advisor.
• Receive referrals from other professionals involved in the deal.

To learn more about Setting an Owner's Exit Objectives, click here to attend a pre-recorded or live tour.