Nearly 80% of business owners do not have a plan for the next act of their life.

According to research from the Exit Planning Institute, most owners believe it’s important to have a transition strategy, but 49% haven’t done any planning and 83% don’t have a written plan.

Two-thirds don’t know all their options. This could put them and their businesses at risk if the unexpected happens: 50% of business exits result from one of the five “Ds”—death, divorce, disability, disagreement, and distress.

On average, 80% of a business owner’s total wealth is tied up in the business, so the risk of not having a solid exit plan seems too costly to ignore.

As a Certified Exit Planning Advisor (CEPA), we can take a difficult task and turn it into an enjoyable part of business ownership.

A Living Document

What an Effective Exit Plan Should Do

Exit plans are clearly tailored to each business owners’ financial and life situation, because no two owned businesses are alike. But every sound exit plan should be designed to provide the following benefits to business owners:

Help you control when and how you exit. Gaining control over the timing and method of exiting a business is critical. This includes unsolicited offers, which often take owners by surprise.
Maximize value. No one can control the market and prevailing multiples for selling a business, but you can maximize where your business falls within the range of possible multiples.
Minimize taxes. By understanding different exit options, including how a business sale can be structured, you may be able to reduce income and future estate taxes.
Clarify your transition choices. The path to transitioning a business to management or your family may be different than transitioning to a third party.
Make you more financially prepared. Exit planning isn’t just about the business—it’s also about how sales proceeds could impact your wealth, legacy, and ability to achieve your personal financial goals.

CUSTOMER FEEDBACK

We bought a company in distress that had lost all credit options with its vendors. While we began to rebuild the company, Marcelo found capital to ensure we had enough cash flow to get to the next level instead of having to pre-pay for inventory and supplies as our client base and orders grew. He has also laid out a capital access plan for us as we hit certain revenue and income milestones to ensure we are successful with our investment.

Private Equity Investor, Miami, FL

My small construction development had run into trouble after a dispute with the general contractor. With foreclosure looming, Marcelo was able to synthesize everything to get the project past the finish line. His high level of communication and professionalism with the lender has bought us some time while we press forward and find a solution to finish the project.

Real Estate Developer, San Gabriel, CA

As an experienced real estate developer, I knew that the retail development I wanted to build was out of favor because of the pandemic. Marcelo ushered in several capital sources to get this project off the ground and we are well on our way to delivering a much-needed product in a community that needs the investment.

Real Estate Developer, Montebello, CA

My credit score and income had taken a beating after a messy divorce. After meeting with Marcelo, he helped me find the courage to move forward on a real estate development project on one of my properties that I had put on hold for years. He found capital that paid attention to the story on the development and not my personal details.

Real Estate Investor, Los Angeles, CA

The team at Shōkunin helped us structure a leveraged buyout of a competitor who was much larger than us. Marcelo put together unique forms of capital to get us the most leverage possible. We were able to close in the middle of the COVID-19 pandemic successfully even after everyone else hit the pause button.

Digital Advertising CEO, Dallas, TX

As the owner of several restaurant brands, Marcelo always made sure to keep us organized as we sought capital for growth, including the unplanned acquisition of a restaurant location that has proven to be one of our most profitable locations. He is my first call for all things related to capital.

Restaurant Management Group, Hollywood, CA

Business Exit Planning - Shokunin