Many closely held businesses in the U.S. are family-owned. Many business owners spend a great deal of time building their enterprises, but a good number of them, however, fail to properly strategize their exit plan. Business exit planning is sometimes referred to as business succession planning, but there are differences. Succession planning is the process of identifying successors and providing some type of training (or passing the torch) to successfully transition management within a closely held business. Exit planning helps maximize the business owner’s investment return and minimize his/her tax liability when transferring his/her company. For most entrepreneurs, leaving their business is likely to be the biggest transaction of their lifetimes. When a business owner decides to move on either through an exit or a succession plan, it is essential that the owner obtain a professional business valuation. Going through a formal valuation process can be the cornerstone for determining what steps owners need to take to achieve their succession or exit goals. Since 1995, VSI has worked with many business owners and their advisors in helping them navigate through the business valuation process to assist them in meeting their financial goals.
