Volume 7 • Issue 2 • February 2017
The Counselor is a monthly newsletter of Hallock & Hallock dedicated to providing useful information on estate planning, business succession planning and charitable planning issues. This month’s issue will be a discussion of step one of the exit planning process – Your Exit Objectives. If you are interested in learning more about the ideas and processes discussed in this newsletter, please contact us for an initial consultation.
In last month’s issue of The Counselor, we introduced you to a higher level of exit planning and provided an overview of the seven step process we use. In this month’s issue, we will take a closer look at step one – Your Exit Objectives. In meeting with Clients, the first thing we hope to achieve is to get a clear sense of your goals and objectives. The great Yankee catcher and noted philosopher, Yogi Berra is purported to have said: “If you don’t know where you are going, you’ll end up somewhere else.” You have to gain a clear understanding of your ultimate goal.
The Three Primary Exit Objectives
Each business owner must answer the following questions:
- What is your target date to exit your business?
- Will an outsider (third-party) or insider (employee or family) succeed you?
- How much money will you need to receive to ensure your financial well-being?
The answers to these three questions will give you the three primary exit objectives a business owner must have in creating an exit plan.
Individual owners may also have secondary objectives that are unique to that owner or business. Examples may include:
- Creating a legacy.
- Benefiting the community.
- Protecting the employees.
- Charitable giving.
You know you want to leave, why take the time to set these goals and objectives? These primary and secondary objectives will help your advisor team determine what tools will be necessary in helping you achieve your goals and objectives. Further, it is only with clear goals in mind that you will know if success has been achieved.
Are you ready to start your exit plan? Consider your answers to the following questions:
- Have you chosen your exit path and/or successor?
- Have you established the date that you wish to stop working in and for your business?
- Do you know how much money you may need annually to live comfortably after you leave your business?
Please contact us if you would like help in establishing your goals and creating a coordinated plan to exit your business.
This Newsletter is for informational purposes only and not for the purpose of providing legal advice. You should contact an attorney to obtain advice with respect to any particular issue or problem. Nothing herein creates an attorney-client relationship between Hallock & Hallock and the reader.