Planning Your Business Exit Strategy

The Direction

Any exit must be carefully planned and executed, whatever form it takes. If you’re passing on the business to heirs or successors, they must be fully apprised of the legal, financial and operational obligations they’re assuming. If you’re selling out or merging, there are complicated tax and regulatory issues involved. And if you’re considering bankruptcy or liquidation, you want to maximize the return on any asset sell-off that’s required.

Ideally, the exit process should be planned three-to-five years in advance in order to facilitate a smooth deal that realizes maximum value. The company will need to show solid tax compliance, good financial reporting and limited legal risk. Even if you’ve never had an audit, you will need one for the sale. Overall, the idea is to do everything possible to eliminate objections in the minds of potential buyers.

The CFO Function

There may or may not be an actual CFO present as you wind down your business. Even so, the CFO function does not go away. Whatever the exit strategy, someone must be there to oversee legalities, financial aspects, compliance ramifications, tax planning, employment issues, and much more. The better the due diligence, the more likely you are to attract the right buyer.

Meeting Your Needs

As with every other stage in the business life cycle, Armanino can provide the audit, as well as the tax and consulting services you need to effect a methodical exit. We have a wide range of experience in virtually every form of exit strategy, and we can help you preserve, distribute, liquidate or otherwise dispose of the company’s assets in an orderly—and ultimately satisfying—manner.