Business Exit Planning

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Exit Paths for Business Owners

​An Exit Path is the route a business owner takes to successfully exit his or her business. Many owners facing the choice of an Exit Path are curious about  the relative popularity of each Path:

1. Sale to Insiders - 31% of business owners are interested in this exit path. A transfer to insiders in the exit path most successfully traveled by owners today, primarily because it reduces risk and provides significant benefits to owners who take it.

2. Transfer to Family - 30% of business owners consider this exit path. Despite the challenges inherent to a family tansfer, there are many offsetting rewards and benefits, which are the results of careful planning.

3. Sale to Third Party - 59% of business owners are interested in this exit path, which is often the first or second choice for many business owners. A third-party sale is often the easiest and most rewarding option for business owners.

4. Employee Stock Ownership Plan - 6% of business owners consider and ESOP exit path, especially those who wish to transfer their companies to know entities, perpetuate their companies missions or culture, and keep their companies in their communities.

5. Liquidation - 18% of business owners view this as a possible exit path. Liquidation is preferable only to death as a means of getting money out of a business. Without any planning liquidation becomes the owner's options.

Why Maintaining Planning Momentum is Important
Business Owner Survey Report