• Step 1: Setting Exit Objectives

     

    Score (0-5)

    I have clear exit objectives and have prioritized them

     

    I know how much longer I want to work in the business before retiring or moving on

     

    I know the annual after-tax income I want during retirement (in today's dollars)

     

    I know exactly to whom I want to transfer the business

     

    I have involved both key employees and family members in my exit planning

     

    My business constitutes less than 50% of my total retirement plan

     

    I have the legal, tax, financial planning, valuation knowledge or a team of advisors available to assist with my exit plan

     

    Step 1 Total (Max. 35)

     

  • Step 2: Determining Value/Price

     

    Score (0-5)

    I have had my company value appraised by a certified appraiser

     

    I have had an appraisal reviewed within the last two years

     

    I have a buy/sell agreement

     

    My buy/sell agreement is funded

     

    My buys/sell agreement adequately protects my heirs, my business, and my partners

     

    My buy/sell agreement has been reviewed within the last two years

     

    Step 2 Total (Max. 30)

     

  • Step 3: Preserving, Protecting, and Promoting Value

     

    Score (0-5)

    I prepare business plans annually

     

    I review my business plans regularly and share them with my key advisors

     

    I have no unpaid claims with the IRS (i.e. payroll taxes) or existing creditors or pending lawsuits

     

    I have key employee incentive plans in place

     

    I track and measure key operational and financial figures that dictate the company's performance

     

    I am consistently implementing focused initiatives to improve my company's financial performance

     

    Step 3 Total (Max. 30)

     

  • Step 4: Business Contingency Plan

     

    Score (0-5)

    I discuss financial results, marketing plans, financing and operations openly with key employees and family members

     

    I have a strong secondary management team in place

     

    I have personal disability income insurance coverage in place

     

    I have a stay-bonus plan in place

     

    I  have business overhead expense coverage in place

     

    My legal matters are in order and my corporate "shield" is being properly maintained and is active with the Texas Secretary of State

     

    Step 4 Total (Max. 30)

     

  • Steps 5 & 6: Converting Business Value to Cash, and Selling the Business for a Note

     

    Score (0-5)

    I have a strong management team in place 

     

    I know how to manage the selling process to maximize the sale of my business

     

    I know how to minimize the income tax consequences to myself and a potential buyer

     

    I know how to structure a deal to optimize my chances of getting the full value out of my business

     

    Steps 5 & 6 Total (Max. 20)

     

  • Step 7: Wealth Preservation Plan

     

    Score (0-5)

    My will matches my estate wishes

     

    My assets are titled correctly and coordinated with my beneficiary designations

     

    All necessary trusts/strategies have been established and funded

     

    My ancillary documents (Living Will, Financial/Health Power of Attorney) are current

     

    I have effective tax planning strategies  in place

     

    Step 7 Total (Max. 25)