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

88.6% of businesses in the U.S. require the owner to be there daily.

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.

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

I bought a run-down hotel to redevelop into a boutique hotel and banquet hall with retail food/beverage service as an owner-user. We had a good bridge loan from a private investor and I didn’t want to refinance. Marcelo was able to use CPACE to help us get reimbursed for items we didn’t know were already eligible for the CPACE program. Not only did I not need to provide a personal guaranty, I don’t have to make my first payment for another 24 months.

Developer, Los Angeles, CA

My manufacturing business was in bankruptcy after I had a dispute with the seller who carried the note. We were at our wits’ end to find a solution to pay them off so I could exit bankruptcy and keep the business. Not only did Marcelo find us a solution to pay them off and keep the business AND the property, he’s putting us into a federal USDA and SBA products for our long-term benefit before the bridge loan expires.

Business Owner, Oregon and California

We needed a line of credit for our liquor manufacturing and distribution business. Everything out there seemed very expensive. Marcelo showed us capital products we didn’t even know existed to save us money and help us grow long-term at a reasonable cost. He also has been introducing us to new clients and vendors. The man knows everybody!

Business Owner, Mexico and California

I own five food and beverage franchise locations. Our headquarters needed a refinance out of a hard money situation. The capital structure was complex, but Marcelo figured out a solid SBA 504 solution that will allow us to exit the hard money loan and prepare for the renovation of another property we own as well. He is also helping us with expansion capital for our next three locations without requiring a personal guarantee!

Franchise Restaurant Owner, Dallas, TX

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

Business Exit Planning - Shokunin