In exit planning, first consider the big picture




“Liquidity events and shareholder exit planning,” by Terrel Bressler, Family Business Magazine, July/August 2014

Transitioning ownership will affect the shareholders, the shareholders' children, the management team and the employees. The effects of a transition on these groups — and the effect these groups might have on a transition — should be carefully considerd.


It is helpful to consider the “big picture” as the first step in the transition process. Answering key questions will help business owners begin to solidify and establish their transition goals.


• How is the company positioned in its marketplace?

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• Do you want to continue growing the business, and do you have the resources to do so?

• Where do you see the company in five years?

• How strong is management, and what are the succession plans?


These questions help define the overall path and timing of a shareholder transition. Determining the company's position in the marketplace provides a sense of its strategic value and whether it can and should continue as an independent enterprise.

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