Business Exit Strategy
The U.S. has almost 30 million small businesses employing nearly half (47.8%) of U.S. workers. Last year more new businesses were formed than in the last four years.
Starting a new business takes a lot of energy and time. The last thing on a new business owner’s mind is an exit strategy. It’s extremely important to set up an exit strategy during the beginning stages of your business.
Decide what your goals are for yourself, your business and family now - and later down the road. Are you planning on running this business for the rest of your life? Do you want to build it and sell within a few years? Do you want to pass it down to your family?
Have you thought of setting up a ‘lifestyle’ business? In a lifestyle business you would not reinvest money (or very much money) and would advance the business in a minimal way. In a lifestyle business, the owner would not be as interested in growing the business but living off the business. The business would be kept to a small level and the owner would comfortably take out a salary, receive bonuses and have a special class of shares. A successful business entrepreneur recently quipped he’d rather have a million or two in personal income during his lifetime than living sparsely and selling his company for a few million more 25 years down the line.
If you’re more inclined to have a lifestyle business, our experienced business attorneys can maximize your money without hurting the business. Our attorneys can structure your business in a way that allows you to draw out cash when needed along with long-term planning. If you decide, or are forced to liquidate your business in the future, you simply close the doors. Our business attorneys also hold master’s degrees in taxation and can help you minimize negative tax implications.
You may also want to set up your business to sell to your employees, managers or families at a later time. A small down payment with subsequent payments over time may be a good solution for you instead of shutting down and walking away with nothing.
When passing down a business to family or others, our business attorneys can help advise and construct a well-planned strategy including a plan of action for the original owner to step back in if needed.
Another exit strategy is an acquisition or a merger where you would establish your company in such a manner it would ensure your business is lucrative and very attractive to a potential buyer.
Setting up a well-thought out plan optimizing a good situation is much better rather than trying to get out of a bad situation at a later date. Prepare now, for the day you decide you want to leave your business due to a change of heart, another offer, retirement, health issues or just want to spend more time with family. Think of an exit strategy as a sound succession plan where you are the one who will benefit.
Ready to chat about your business exit strategy? Call our Denver business attorneys at 303-618-2122 to discuss your business exit plan now.
Looking for the best exit strategy for your business?Contact Gantenbein Law Firm's business lawyers to discuss your options at 303-618-2122.