First, a definition. What is exit or transition planning? It is a proactive process to help:

• Confirm you have a sellable business

• Maximize the value of your business

• Reduce the risk and challenges associated with a transfer

• Reduce the tax ramifications of the transfer

• Achieve your personal, business and financial goals

As you can imagine, this process can be quite complex. Your RBC Wealth Management financial advisor can help you develop and execute your exit/transition planning strategy while utilizing an RBC WealthPlan® to determine if the sale of your business would be able to support your lifestyle and the achievement of your life’s dreams. Like building the business, exiting the business is not a straightforward process. Even the savviest business owners may be unfamiliar with all the nuances of the exit and transition processes.

Timeline

Ideally, you should start planning at least three years before you want to transition and work with a team of professionals experienced in exit/transition planning who have your personal vision in mind. All too often business owners do not fully take the time to explore the choices available to them; financial advisors and wealth managers can provide in-depth advice to help business owners of all types gain liquidity, diversify wealth, reduce risk and increase value. If, in consultation with your financial advisor and other professionals, you decide to pursue exit/transition planning, the next steps might look something like this:

Step 1: Assemble your team of financial advisors and other professionals

Step 2: Assess the marketplace

Step 3: Prepare your business

Step 4: Obtain a valuation

Step 5: Structure the transaction

This is merely a brief outline of some of the steps you might take when you are ready for your business succession planning.

To learn more and get additional resources to help you step away from your business while crafting a plan to better enjoy retirement, reach out.