Money Matters with Jim Doyle: Creating a Successful Exit Plan

Money Matters with Jim Doyle
Season 2, Episode 10 – Creating a Successful Exit Plan
Visit our Money Matters with Jim Doyle show page for current schedule info.

All business owners will exit their business at some point, but will they do so on their terms? Exit planning must address their financial independence and succession of the companies into the hands of owners they choose, whether that’s internally or externally. The challenges in designing an exit plan become apparent when you start to look beyond the numbers. Will the exit strategy be part of an estate plan? …As part of a succession plan to family or other key persons? …Will it involve a sale to a competitor?… Not being mentally ready to exit can complicate the process further, but so can exiting at the wrong time.

Business owners I’ve spoken to dream of enjoying the fruits of their labour, but are also motivated by thoughts of benefiting employees, contributing to the community, or maintaining their business legacy. Yet, an unanticipated, or unplanned sale might lead to a massive undervaluation of the company, ill prepared successors or strained relationships between the family members involved in the business.

Successfully creating a successful exit plan, is a complex and time-consuming process that readies the company to attract good offers, or transition to family. Business owners require planning, assistance from expert advisors, and a proactive approach to find a suitable buyer and exit on their terms.

What is this episode about?

In the absence of an exit plan, the company’s future and the families’ financial security are often in significant jeopardy. In my experience, the majority of business owners that don’t have an exit plan fail to realize how much money they will need to live a comfortable retired life, achieve their financial goals post exit, or do the things they dream of after retirement. When it comes to designing a successful exit plan, we’ll share the experiences and advice of Dane Chauvel, Founder, CEO and Fisherman, Organic Ocean Seafood Inc., Ross Bonetti, Founder and President, Livingspace, Elyssa Lockhart, Partner, Fasken/Trust, Wills and Estates and Charities Department.

What are you hoping will come out of the show?

The first steps of a long journey . . . .Designing a successful exit strategy doesn’t mean you’re about to retire. It considers the ‘what ifs’ and can be an exercise worth doing to get a sense of direction, both for the business and the owners’ personal life. In the absence of an exit plan from an early stage, it might be too late to make the company exit-ready when the owners finally decide to transition. A good exit plan gives the business owner the time, strategies, and execution options to consider.

The transfer of a family business from one generation to the next happens less than you might think, often seeing the business fall apart or get sold due to a lack of planning. When family business owners assume that no forethought or planning is needed to pass on the business, they put the family member’s legacy, harmony, and financial future at risk. Consider talking with your financial planner for tips on getting started.

Watch Money Matters with Jim Doyle Thursdays at 5pm PT and Sundays at 7am PT on Joytv. The program also airs on FaithTV Mondays and Wednesdays at 4pm CT / 5pm ET.

Jim Doyle, Doyle & Associates Private Wealth Management, Investors Group Financial Services Inc.

This is a general source of information only. It is not intended to provide personalized tax, legal or investment advice, and is not intended as a solicitation to purchase securities. Jim Doyle is solely responsible for its content. For more information on this topic or any other financial matter, please contact an IG Wealth Management Consultant. Views of guest speakers may not be shared by IG Wealth.

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