Put simply, an exit plan addresses all of the business, personal, financial, legal, and tax questions involved in transferring ownership of a business.
Exit planning focuses on moving a business from one owner to another.
If you don’t plan on being in your business forever, you need an exit plan. Whether the future of the business involves a sale or leaving it to the next generation to take over, an exit plan will ensure you’re prepared to leave your business at the right time.
For many business owners, a large portion of their net worth is tied up in their business (often up to 80%). Since business owners are often focused on many different aspects of the business, it is crucial that planning for such a large personal asset is not ignored.