Exit and Succession Planning

Exit and succession planning is no longer a single event. Today, successful business owners consider exit strategies throughout the lifecycle of their business.

When opportunities arise, business owners need to be ready. We help our clients make a conscious effort to maximize enterprise value so that they can take advantage of any opportunity.


"What is Exit Planning?"
Copyright 2014 Exit Planning Institute

What Is Exit Planning?

According to Richard Jackim, Co-founder of the Exit Planning Institute (EPI), an exit plan asks and answers all the business, personal, financial, legal and tax questions involved in transitioning a privately owned business.

Exit plans include contingencies for illness, burnout, divorce and death.

The purpose of an exit plan is to maximize the value of the business at the time of exit, minimize taxes and ensure the owner is able to accomplish all of his or her personal and financial goals in the process.



What Is Succession Planning?

Succession planning is a specific type of exit strategy for the owner. A succession plan is designed to ensure the continuation of the business once the owner moves on to other opportunities. Succession plans are typically used for multi-generational family businesses, or as a method to transfer ownership to key employees.

But more than two-thirds of small-business owners have no written transition plan in place, and just 51% of small-business owners have done any succession planning, according to EPI. This lack of planning may explain why only 30% of all family-owned small businesses survive into the second generation and a mere 12% survive into the third generation. 

Savvy small-business owners know that they need to execute a business value enhancement plan that tracks important performance indicators, as well as create a business succession plan that has the support of other stakeholders. Without the buy-in from stakeholders, the succession plan may not go as smoothly. 

Smart planning can help small-business owners prepare for their retirement and ensure they have the right person or people (whether family members or unrelated current employees) to take over and continue the business.


Best Practices from The Exit Planning Institute 

Our team adheres to the best practices advocated by EPI. In addition, our founder, Nick Giacoumakis, holds the Certified Exit Planning Adviser (CEPA) designation, which is a program administered by EPI.  To learn more about the CEPA program, visit our "Why a CEPA?" page.