Exit Strategy Checklist - Public

1. Define Your Goals:

• Clarify your exit objectives, whether it's selling the business, passing it on to a family member, or liquidating assets.

2. Timing and Preparation:

• Determine the ideal timing for your exit and start preparing well in advance.

3. Business Valuation:

• Get a professional business valuation to understand the current worth of your business.

4. Financial Planning:

• Work with a financial advisor to optimize your financial position before and after the exit.

5. Legal and Tax Advisors:

• Consult with legal and tax advisors to navigate the complex legal and tax implications of the exit.

6. Documentation:

• Gather and organize all important business documents, contracts, and financial records.

7. Identify Potential Buyers:

• Identify potential buyers, whether they are competitors, investors, or individuals interested in your industry.

8. Business Performance Enhancement:

• Focus on improving the business's financial performance and operations to make it more attractive to buyers.

9. Confidentiality Agreements:

• Ensure that potential buyers sign confidentiality agreements to protect sensitive business information.

10. Business Presentation:

• Create a compelling business presentation or prospectus that highlights the strengths and opportunities of your business.

11. Negotiation Strategy:

• Develop a negotiation strategy to achieve your desired exit terms and price.

12. Due Diligence:

• Be prepared for due diligence by potential buyers, which may involve a deep examination of your business records.

13. Letter of Intent (LOI):

• Review and negotiate the terms of a Letter of Intent (LOI) with potential buyers.

14. Legal Contracts:

• Draft and review legal contracts, including the purchase agreement, to ensure legal compliance.

15. Employee Communication:

• Communicate the exit plan to employees and address their concerns or questions.

16. Customer and Supplier Notifications:

• Notify customers and suppliers of the upcoming changes and assure them of a smooth transition.

17. Transition Plan:

• Develop a transition plan to ensure a seamless handover of responsibilities and operations.

18. Post-Exit Involvement:

• Determine if you will stay involved in the business in any capacity after the exit.

19. Legal Compliance:

• Ensure compliance with all regulations and licenses during the exit process.

20. Finalize Financial Details:

• Complete all financial transactions and transfer assets as per the exit plan.

21. Employee Compensation and Benefits:

• Address employee compensation, benefits, and severance packages as required.

22. Closing the Deal:

• Sign the final agreement, transfer ownership, and close the deal.

23. Post-Exit Financial Planning:

• Work with financial advisors to plan for your financial future after the exit.

24. Celebrate and Reflect:

• Take time to celebrate your achievements and reflect on your entrepreneurial journey.

25. Legal and Tax Compliance After Exit:

• Ensure continued compliance with legal and tax obligations following the exit.