Exit Planning in Elgin

What exit planning actually covers

Exit planning is the work done in the one to three years leading up to a sale. It sets a target price, identifies what will lower that price in a buyer's eyes, and builds a timeline that fits your retirement, your partners and your tax picture. It ends in one of a few places: a sale to an outside buyer, a transfer to a partner or family member, or a decision that the business is worth more if you keep running it for now.

Our approach is to fix before we sell, when fixing makes sense. A business that depends on the owner for every customer call might gain real value from twelve months of handing those relationships to a manager. A business with an expiring lease or one customer providing half its revenue may be better sold sooner, with the risk priced in honestly, than held while you chase an improvement that may never land. We tell you which situation you are in and why.

What we work through with you

Recast financials

We restate your profit and loss statements to arrive at seller's discretionary earnings. Owner pay, a truck or car run through the company, and one-off costs like a lawsuit or a roof replacement get added back, so the figure reflects true earning power. Lenders and buyers set their price from this number, so every adjustment needs a receipt or a statement behind it.

Owner dependence review

We map which tasks, vendor relationships and customer accounts run through you personally. Each one is a discount in a buyer's offer. We help you decide which to hand off and how long that handoff realistically takes.

Contract and lease check

We read your lease for assignment clauses and remaining term, and review customer and supplier agreements for change-of-control language. A lease that cannot transfer can stop a deal at the lender stage.

Financing readiness

Most buyers of small businesses use SBA-backed loans, and lenders want clean tax returns that match your books. We flag gaps between the two early, while there is still time to close them.

Exit route comparison

We lay out an outside sale, a partner buyout and a family succession side by side. You see how each one affects timing, likely price and how long you stay involved after closing.

When an exit plan belongs on your calendar

• Leaving within three years

  Proving that a value problem is solved usually takes twelve months or more of financial results. Starting early gives the improvement time to show up in the numbers a buyer will read.

• Your taxes and your books disagree

  If your tax returns show much lower profit than you believe the business makes, buyers and lenders will go with the returns. That gap needs a plan ahead of any listing.

• Customers ask for you by name

  When key accounts only deal with the owner, a buyer worries those accounts walk out at closing. That concern shows up directly in the offer.

• A partner wants a different timeline

  Two owners with different exit dates need a buy-sell agreement and a valuation method set in writing. Our Partner Buyouts and Succession page covers that route in more detail.

• Your lease is nearing its end

  Less than five years of remaining term, with no renewal option, makes financing hard for a buyer. Renegotiating before a sale is often the single most useful step.

How an exit plan comes together

1. 1

   Confidential first call

   You tell us your goals, your rough timeline and how the business runs today. Nothing you share leaves our office, and no one at your business needs to know you called.

2. 2

   Valuation and document review

   We review three years of tax returns, profit and loss statements and your lease, then produce a valuation based on recast earnings. You get a number and the reasoning behind it.

3. 3

   The fix-or-sell list

   We list each issue that lowers value, estimate how much it costs you in a sale and how long it would take to address. Some items are worth the time. Others are cheaper to disclose and price in, and we say so plainly.

4. 4

   Timeline and handoff

   We set milestones for the items you choose to tackle and check progress with you by phone, video or at our office. When the numbers support it, we move into preparing the listing, as described on our Sell a Business page.

What shapes your plan and your eventual price

Planning opens with a valuation that costs you nothing and stays private between us. Putting your company on the market with us carries no upfront charge, no retainer and no hidden fees. Our fee comes out of a completed sale, so we are paid only when you are, and that keeps our advice aimed at deals that actually close. The factors below drive how long planning takes and what the business brings.

Quality of your records

Clean, reconciled books shorten the work. Mixed personal and business expenses take longer to recast and document so a buyer will accept them.

Depth of owner involvement

The more the business relies on you, the longer the handoff period. A trained manager in place can raise what buyers will pay.

Customer concentration

If one or two accounts carry most of your revenue, buyers discount for that risk. Spreading revenue takes time and is not always worth chasing.

Real estate in the deal

Owning the building adds a second asset to value and plan around. Our Business and Property Sales page explains how those deals are structured.