Exit Planning

Exit planning is a systematic process designed to generate a plan focused on the ownership of a privately held business. Strata develops owner based plans that are not based on business needs as much as it is on the goals the business must achieve before the owner can leave the business in style. These plans are developed in conjunction with the business owner and other advisors of the owners. Generally these owner based goals fall into three broad categories:

·     To create and preserve the value of the company

·     To provide a means to exchange that value for money with the least tax consequences possible

·     To meet personal and family needs by providing security and continuity to the business and for the owner’s family either upon a planned departure or if disaster strikes, upon a death or disability

Strata uses a Seven Step Exit Planning Process™ to develop customized plans for its clients. Each owner’s unique objectives drive the creation of his or her exit plan. Exit plans are based on the following:

·         Defining owner objectives

·         Determining business resources and personal financial resources

·         Maximizing and protecting business value

·         Preparing the business for ownership transfers to third parties

·         Developing  and executing ownership transfer action plans to insiders

·         Planning for business continuity

·         Planning for personal wealth and estate concerns

The resulting exit plan contains strategies, assignments and timelines to accomplish certain tasks and to achieve benchmarks. In some cases, the business owner has already begun the planning process before engaging Strata Business Consultants. In those cases, Strata can develop plans focused on areas that could negatively impact the exit process if not properly addressed.

In addition, to working with the business owner, the exit planning process is a team oriented approach that includes working with one or more of the client’s existing attorneys, CPAs, and other financial consultants.  Oftentimes, the exit plan involves action items from our other service offerings such as Valuation Services and Mergers & Acquisitions Advisory Services.