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Developing a Business Strategy
Whether you're looking to retire in several years, or you're interested in pursuing other business avenues, having an exit strategy allows you to maximize your financial strength and meet your goals when it comes time to leave your business. Experts agree that it's never too early to have an exit strategy. Executing your exit could take a few years, and it's common for a business to be on the market for a year or longer. Most importantly, your exit should be voluntary, occurring when times are good and your business isn't facing economic pressure. You've worked hard for your business and you should get the most out of it. By establishing a good business banking relationship, you can gain insight and resources that will make planning your exit strategy easier. At Leaders Bank, our long-term relationships with customers allow us to understand their business and offer personalized advice through the complete life cycle of their business ownership. One of the ways that a business bank can help is by assisting to find a buyer for your business. The bank may know a mergers and acquisitions firm or other companies seeking to buy a business. Not only can introductions be made, but the bank's good reputation carries weight with an M & A firm and other prospective buyers. Another way a bank can help is by making an ESOP loan to enable your company's employees to own the company. Employee Stock Ownership Plans offer you a tax advantage while also providing an excellent benefit to your loyal employees. ESOPs are a popular, but complex exit strategy that an experienced business banker can help guide you through. Your banker should also be able to offer you professional contacts that can assist with the legal and tax matters of setting up an ESOP. With any eventual liquidity event, a bank and its professional network can help deliver the most advantageous outcomes for you and your family. A trust and estate attorney can help you develop an optimal estate tax minimization strategy, especially if you're considering gifting or selling the business to family members. Additionally, an exit strategy and access to trusted experts are all the more critical in the situation of your death or disability. A banker can also put you in touch with a wealth management expert who can devise an investment program geared to your risk tolerance and financial goals. Networking is one of the most important benefits that a bank can provide to its customers. At Leaders Bank, we have numerous contacts in venture capital, boutique legal, forensic accounting, family business consulting and other specialty areas. If an outside buyer is found for your business, the bank can also provide the purchase financing for the buyer's business. A business bank should be able to work with all parties to put a deal together in very timely fashion. Leaders Bank invests in relationships, delivering the experienced people, quick responses, and personalized service that privately-held businesses, owners and entrepreneurs deserve. One of the critical factors in an ownership transaction is the business valuation, which is another area where a business bank can help. Business owners who don't know what their business is worth risk the costly pitfall of leaving money on the table during the sale of the business. A banker can discuss the makeup of the fair market value of the business and put you in touch with business valuation experts who can examine intangible assets such as customer base, patents and business reputation. An experienced banker can also help you with steps to make your business more appealing to buyers, such as eliminating unnecessary expenses to positively affect your bottom line. If you don't have an exit strategy, now is the time to start planning. Your future depends on it. Whether you may be interested in devoting future efforts to starting a new venture, or perfecting your golf swing in the Caribbean, an exit strategy maximizes your final payday and minimizes your stress as you visualize goals beyond your successful business. |
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