Exit planning is a form of preparation program for the exit of an entrepreneur from his company. There are different exit planning strategies available, and an exit planning Connecticut attorney can help you selecting the most custom tailored solution. Some effective exit planning strategies include selling the business, Mergers & Acquisitions, Liquidation, or Initial Public Offering (known as IPO). An exit plan is an extremely comprehensive program similar to a strategic planning. Within exit planning, several factors will be thoroughly analyzed:
- Financial analysis
- Legal analysis
- The company’s tax implications
Basically, the main aim of the exit planning strategy is to minimize the overall value of the company upon exit. Efficient exit planning also implies minimizing tax implications and of course coming up with a strategy that meets the personal goals of the owner. Successful exit planning requires extremely good preparation. It is important to mention that a good exit plan will always stand by the interests of the owner, besides looking to minimize tax issues. The company owner may decide to sell the company to a third party, to sell it to management, or to exit by selling it to the next generation of owners (such as in the case of a family business for example). Regardless of the method of exit, an exit planning Connecticut attorney can assist you with all important matters along the way.
You should not confuse exit planning with business succession planning. The exit strategy will have as main focus the best interest of the business owner and all the factors that directly arise with the exit (how the exit will affect the owner on a legal, personal or financial level). On the other hand, a business succession plan will have as main focus the “well-being” of the business itself, regardless of the implications the exit has on the owner.
If you want to know more about Exit Planning, contact an experienced exit planning Connecticut attorney lawyer. Your lawyer will be able to answer all of your questions and help you follow all of the guidelines in order to get the most tax benefits from your investment.