Trinity Valuation Consulting Group, PLC

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Exit Planning

Without exception, every owner leaves his or her business. Whether they leave and meet their objectives or not depends on the specific exit planning actions they take before they leave. Exit planning helps business owners set, sort through, and achieve their exit objectives. It enables owners to leave their companies when they want, to the successors they want, and with the amount of cash they need.

For most owners, their business constitutes the majority of their personal wealth. Most have worked tirelessly for years with the goal of selling their business for retirement or leaving it to family for generational continuity. Either of these decisions are perfectly acceptable approaches. To accomplish these goals, it is crucial that the business owner does not wait until they are ready to exit to start the exit planning process. To execute a successful exit plan that meets an owner's objectives while minimizing taxes and maximizing business value, it is necessary to start the exit planning process a number of years in advance.

Most business owners are too busy working in the business or may be overwhelmed by the process and unsure of how to begin. Trinity's exit planning advisors and trademarked process allow the business owner to focus on the business while we focus on one of the single most important transactions of the business owner's life.

Seven Step Approach to Exit Planning™

Our exit planning approach is a seven-step process that helps you establish your objectives, describes methods to help you reach your objectives and explores contingency planning. The seven steps are as follows: 

Step One - Establishing Owner Objectives®
A winning exit plan rests on three owner-established goals:
1. When you want to leave
2. How much money you want when you leave
3. Who you want to leave the business to
These form the foundation of your Exit Plan.

Step Two - Establishing Business Value and Cash Flow®
Step One establishes what you want or need in order to leave your business in style. Step Two determines what you have - how much is your business worth? If you're selling to a family member, key employee or co-owner, future cash flow of the business after you leave it, is even more important than value.

Step Three - Promoting Value®
What features, or characteristics, are necessary to make your business saleable and valuable? These features (Value Drivers) either reduce the risk associated with owning the business or enhance the prospects that the business will grow significantly in the future. Find out what they are.

Step Four - Sale to a Third Party for Top Dollar®
If your goal is to sell to a third party, learn how to do so for top dollar.

Step Five - Transfer to Management or Family Members®
A sale to insiders does not end with the closing. Only when your price is paid in full does the transfer end. Learn how to orchestrate a successful sale to insiders who often lack sufficient cash.

Step Six - Developing a Contingency Plan for the Business®
Business continuity is much more than simply making sure there is a new owner. If you die or become disabled before your exit is complete, your dream of financial security will become unattainable. Learn how Business Continuity is done whether or not you have a co-owner.

Step Seven - Wealth Preservation Planning®
The sale of a business generates cash. Cash for you, your family and the IRS. Learn how to minimize the IRS's share.

Our approach consists of a set of basic exit plan principles:

• We advocate a comprehensive approach tailored to the specifics of your business.

• We require inclusion of the business owner's other professional advisors or make recommendations if the business owner doesn't have a relationship with a needed professional.

• Tasks are assigned to specific professionals for implementation.

• A detailed timeline and implementation schedule is part of the exit plan.

• After a detailed plan is agreed on by the business owner and other advisors, we put the plan into a clear, concise written report.

Some of the professional specialties that might be represented on a business owner's exit planning team include:

  • Financial Planner
  • Valuation Specialist
  • Insurance Advisor
  • Business Broker
  • Investment Advisor
  • Investment Banker
  • Business Attorney
  • Business or Management Consultant
  • Estate Planning Attorney
  • Banker
  • CPA

We, as the exit planning advisor, coordinate this process and act as the intermediary among the other advisors so that you can focus on your business.