Exit Planning for Private Businesses
Business exit planning by industry leaders leaves you with more.
You’ve worked hard to build a thriving business, but you might not want to run the business well into your golden years. Exit planning allows you to make strategic goals for your business and personal future and map the steps toward accomplishing them.
John Pullen, Ph.D.
CHAANGE, Inc.
I bought the business for 30% of the offering price--a 70% reduction in price. I was delighted with Mr. Abrams’ skills in valuation, education, and negotiation
What is a Business Exit Strategy?
An exit strategy outlines a plan to ensure and increase the value of the business before reducing or liquidating ownership in a business, ideally at a significant profit. Formulating an exit plan helps business owners clarify their personal, financial, and business goals and strategize how to achieve them best.
AVGI provides exit strategy support to help business owners sell or successfully transition privately owned businesses most profitably. With our deep understanding of market conditions and what creates and drives value, we can assist you in positioning your business for the most successful transition when applying your exit strategy.
Why is Making an Exit Strategy Important?
While you might be confident that you only want to retire at a certain age, a business owner cannot always predict when they will need to exit their business. Unforeseen circumstances, such as illness or injury, can arise suddenly, forcing an unprepared owner to make complex business decisions under extreme pressure.
H.A., Esq.
(name withheld per company policy)
“The team at Abrams Valuation Group worked long hours at a very fast pace to comply with our short deadlines, and their work saved our client $10 million.”
Timing Your Exit Well
Proper planning allows you to time your exit strategy just right, which can significantly impact the profitability of your exit and the continuity of your business. Before exiting your business, you’ll want to make sure that your business is financially healthy with rosy growth projections so it is in the strongest position to negotiate a favorable sell price with potential buyers or transition smoothly to new leadership. The best way to time your exit right is by creating an exit strategy well in advance. By defining your exit goals and keeping your finger on the pulse of your business, you will position your business for a successful exit.
It is best to make an exit strategy at least 3-7 years before your desired exit time so you already have an optimal plan. Putting the time and effort now towards proper planning for your business’s future will ensure a smoother transition when you are ready to apply your exit strategy.
During my tenure as IRS Estate Tax Attorney, I audited several large estates where Mr. Abrams…represented the taxpayer…His works were always professional and cutting edge…I actually learned from his vast knowledge and expertise…I have seen Mr. Abrams’ draft manuscript for his upcoming book on valuing S corporations…I have never seen such a level of mathematical sophistication in business appraisal…Mr. Abrams is…very well respected within the IRS’s circle. I recommend clients who have estate and business valuation issues to seek Mr. Abrams’ professional services.”
The valuation has helped tremendously already in our negotiations when VCs say ‘we think you’re worth this’, we say ‘Well, we’re going to have to find a happy medium, because, as we’ve been told, we’re nothing without the VCS money, but our idea is still actually really valuable."
Why Involve a Valuation Expert in Making Your Exit Plan?
Abrams Valuation Group, Inc. (AVGI) offers an expert, forward-looking approach to business exit planning. AVGI helps you craft an exit strategy that protects and promotes your business and financial priorities, taxation requirements, and personal considerations. We have assisted many business owners in drafting and executing successful exit strategies, resulting in high profits with minimal tax obligation.
With our deep understanding of what creates and drives value, AVGI is uniquely positioned to assist business owners like you in gaining a good understanding of the current value of your company, strategizing how to increase its value, crafting the ideal exit strategy, and advising you on the optimal timing to apply your exit plan. Tapping into AVGI’s wealth of valuation knowledge and expertise allows you to create an exit strategy to maximize your business’s value, revenue, and profits.
When it comes time to execute your exit strategy, AVGI’s experts can assist end-to-end with mergers and acquisitions or provide an expert opinion with our transactions advisory services.
Finally, when the exit plan transaction is complete, you’ll likely need a valuation to determine your tax liability on the profits gained from the deal. AVGI’s innovative and empirical approach to business valuation has helped hundreds of businesses steeply reduce their tax liabilities by applying various valuation discounts. AVGI’s valuation results are precise, airtight, and audit-resistant, with an audit success rate of over 99%.
Begin with the end in mind, and involve AVGI’s valuation experts in your exit and succession planning from the start to ensure the maximum possible profits and the lowest possible tax liability for your business.
01
Understand, Maintain & Create Value
02
Maximize Profits & Minimize Liabilities
03
Exit Strategy Execution Support
04
Post-exit Valuation Services
“I’ve worked with a lot of appraisers. Jay Abrams is next level! He has an unparalleled passion for the subject and an amazing ability to communicate it.”
-Kevin F. Gillespie
Law Office of Kevin F. Gillespie
When it comes time to execute your exit strategy, AVGI’s experts can assist end-to-end with mergers and acquisitions or provide an expert opinion with our transactions advisory services.
Finally, when the exit plan transaction is complete, you’ll likely need a valuation to determine your tax liability on the profits gained from the deal. AVGI’s innovative and empirical approach to business valuation has helped hundreds of businesses steeply reduce their tax liabilities by applying various valuation discounts. AVGI’s valuation results are precise, airtight, and audit-resistant, with an audit success rate of over 99%.
Begin with the end in mind, and involve AVGI’s valuation experts in your exit and succession planning from the start to ensure the maximum possible profits and the lowest possible tax liability for your business.
01
Merger and acquisition
02
Selling your stake to a partner or investor
03
Initial Public Offering (IPO)
04
Management and employee buyouts
05
Family Succession Succession Planning Legacy Exit
06
Aquihire- Aquisition to acquire employees’ skills and talent.
07
Liquidation