At Compass Advisory, we help business owners like you strike a harmonious balance between business and personal planning needs. We realize that for you, everything in your financial world begins and ends with your business. Whether it’s retirement planning or healthcare decisions, your situation doesn’t fit the traditional planning mold.
As a business owner, you have the opportunity to dictate your own financial success in a way that few others do. However, that opportunity comes at the risk of a great deal more to lose if life doesn’t unfold as planned. During the course of the Business Planning Process, we will help protect your business from loss, provide strategies to recruit, retain, and reward key employees, and most importantly guide you on when and how you can ultimately exit your business, helping to ensure that you and your family receive the full value of your life’s work.
For the business owner, all roads lead to Exit Planning. Eventually, you will leave your business - the question is when, to whom, for how much, and on what terms? Our experience has taught us that in each unique business owner situation, there is a specific process of discovery, strategy, and implementation that can lead to the best possible result when it comes to realizing the full value of your life's work:
What Do You Want? - The answer to this question is about many things - how much do you want in post-exit cash flow? When do you want to exit?
Sell for Highest or Lowest Value? - Really, this is a question about who you plan to sell the business to. If it's an Outside party, the goal is typically to sell for the highest possible price. If it's an Inside party, the goal is actually to sell for the lowest possible price. Either approach requires up front planning to put the right pieces in place for when the time comes.
Do Your Employees Act Like Owners? - A critical, but often overlooked, aspect of a successful exit strategy is locking up key employees who will serve as a bridge from old ownership to new. This continuity is critical for the success of both parties and can be assured by taking the proper steps to motivate key personnel to act like an owner without you actually giving up any ownership.
Is Your Exit Strategy Synced with Your Retirement Strategy? - The amount of cash flow needed in retirement creates constraints on the terms of your business exit strategy, and vice versa. Coordinating retirement distribution strategies with the exit strategy is paramount, and the sooner the better.
What about Your Estate Plan? - How will the business exit strategy impact your overall tax and estate plan? It's critical that you are prepared in advance to deal problems that could be created because of your success, especially when it comes to the need for liquidity and the desire to treat all family members "fairly", given that "equally" is not always an option.
Guardian, its subsidiaries, agents, and employees do not provide tax, legal, or accounting advice. Consult your tax, legal, or accounting professional regarding your individual situation