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Navigating the Challenges of Exiting Planning and Succession

Learn the basics of exit planning and succession, the stakes involved, and why planning for your exit is important. Discover the resources and customized exit plan that can protect your wealth and move you into the next stage of life. Presented by experts from Beacon Exit Planning LLC and Glass Magazine.

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Navigating the Challenges of Exiting Planning and Succession

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  1. Navigating the Challenges of Exiting Planning and Succession Presented by Katy Devlin Editor in chief, Glass Magazine

  2. Kevin Kennedy President of Beacon Exit Planning LLC, www.beaconexitplanning.com, a consulting firm that provides written plans and support programs to private business owners for succession and exit planning.

  3. Basics of exit planning and succession • Odds of a successful transfer • Stakes involved • Resources

  4. Why is planning for your exit important?

  5. “In running your glass business there is only one guarantee: you eventually will exit—either voluntarily or involuntarily.” - Kevin Kennedy

  6. “Exiting is not an easy process, and the odds are not in your favor. In order to succeed, the business and the owner must both be prepared to successfully transfer the business.”

  7. Exit Plan • A customized plan that monetizes a business, meets the owner’s • personal and financial goals, protects their wealth, and moves • the owner into their next stage of life.

  8. The Scope of the Exit Plan

  9. Succession Planning • A succession plan focuses on the human side of the • business. It aims to ensure the success of the company • when the owner/CEO retires by moving senior • management into leadership roles.

  10. The odds are against success Fewer than 20% of companies that go to market actually sell. The statistic is closer to 10% for contracting companies.

  11. The odds are against success Fewer than 30% of businesses will actually transfer or sell to employees, managers or family.

  12. The odds are against success 70% of businesses fail to transfer to the second generation or an outside buyer. 90% of businesses fail to transfer to the third generation.

  13. What are the stakes?

  14. Financial Stakes • 70% of an owners’ wealth is trapped in their illiquid business • Taxes can reach 55% for business sale • Business liquidation may only bring 10% of a business’ value

  15. Financial Stakes for Family Spouses and children sometimes rely on income from the business, with no outside income of their own.

  16. Financial Stakes for Family • Exit plan • Buy-sell agreement (contingency planning)

  17. Contingency Planning

  18. Contingency Planning • Buy-sell agreement (medium or large companies) • Letter of intent (small companies)

  19. Resources • Beacon Exit Planningbeaconexitplanning.com • Exit Planning Institute exit-planning-institute.org • Glass MagazineGlassMagazine.com/Exit

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