FAQs about Business Exit & Succession Planning

Leaving a business can be one of the biggest financial moves a business owner makes during his lifetime. When this time comes and owners have developed an effective exit plan, they can position themselves to leave on their terms – maximizing the possible payouts they receive while minimizing the associated tax liabilities.

To underscore the importance of good business exit plans, below, we will answer some commonly asked questions about them. When you are ready to put your business exit plan in place – or when you need any assistance resolving a business legal issue, don’t hesitate to contact a Denver business attorney at Downey & Associates, P.C.

Answers about Exiting a Business

Q: I’m not even considering leaving my business yet. When should I start thinking about my exit plan?

A: Generally, it is recommended that business owners start thinking about exit planning now even if they are planning to stay at their business for a while – even for the next 10 years or more. That’s because, ideally, they are going to want to initiate the exit plan they have developed between 3 and 10 years before they want to step away from their business.

It is critical to note here, however, that life circumstances (like, for instance, an illness or accident) can sometimes force business owners to have to leave their businesses before they intended. This is another important reason to have a business exit in place so that you – and your business – are prepared for (and won’t suffer losses in the event of) this contingency.

Q: What happens when owners don’t develop business exit plans?

A: Without a business exit plan, business owners may be forced to compromise some of their goals and objectives for leaving the business. In more constrained situations, such compromises can be as costly as they may be stressful and frustrating. And this is all avoidable.

Q: What types of issues are involved in business exit planning?

A: Generally, the issues to consider when you are developing your business exit and succession plan include (but are by no means limited to):

• Tax planning
• Business due diligence and evaluation
• Sale versus succession
• Other exit strategy issues.

Q: What’s the biggest benefit of exit planning?

A: The biggest advantage to having a business exit plan in place is that owners get to walk away from their business on their terms with the least possible losses/liability and the greatest possible returns.

The bottom line is that business owners have likely worked hard to build their businesses And business exit plans can help them protect their interests, investments and hard work.

Contact a Denver Business Attorney at Downey & Associates, PC

For experienced help resolving any business legal issue, contact Denver Business Attorney Thomas E. Downey. Since 1983, Thomas Downey and the other legal professionals at Downey & Associates, PC, have been providing individuals and businesses in the Denver Metro Area and throughout the U.S. with the highest level of legal service for their business, litigation, & property tax legal issues.

To learn more about your rights and options, as well as our various services, call us at (303) 813-1111 or email us using the contact form on this page. From our law offices in Centennial, we serve clients throughout Colorado and the U.S.