Checklist
Business exit planning checklist
Work through this before a buyer appears. Bring the unanswered items to your CPA, attorney and advisor.
Objectives
- Have you decided between a third party sale, family transfer, management buyout and gradual withdrawal.
- Do you have a target timeline, and is it realistic given the company's current condition.
- Have you defined what the proceeds must produce as income for the rest of your life.
- Do you know what you will do with your time after closing.
Tax and structure
- Has your CPA modeled the estimated after tax proceeds under likely deal structures.
- Do you understand how purchase price allocation would affect your result.
- Have you confirmed which planning approaches close once a letter of intent is signed.
- Has your entity structure been reviewed against the intended transaction.
- Have state tax consequences been considered, including residency.
Business readiness
- Could the business operate for ninety days without you.
- Are financial statements clean, current and defensible under diligence.
- Are key customer and supplier relationships documented rather than personal.
- Are key employees likely to stay through a transition.
- Are contracts, leases and intellectual property properly documented and assignable.
Personal planning
- Are your estate documents current and consistent with beneficiary designations.
- Is there a plan if you become disabled before the sale completes.
- Is your buy sell agreement funded and based on a current valuation.
- Have you considered what the proceeds mean for your legacy objectives.
The team
- Transaction attorney engaged.
- CPA engaged for forward looking modeling, not only compliance.
- Business broker or M&A advisor selected.
- Independent valuation obtained where appropriate.
- Someone responsible for keeping your personal objective visible throughout.
Important disclosure
This content is general education, not legal, tax or investment advice, and not a recommendation of any specific product. Suitability depends on individual facts, product terms, issuing company strength and current law. Consult your own licensed legal and tax professionals before acting.
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