ServicesExit Planning
Exit Planning in Cedar Park
Most business owners get one chance to sell. Exit planning gives you one to five years to prepare for it: cleaner books, less reliance on you and fewer surprises in due diligence. We map what buyers will check and help you close the gaps before your listing goes live.
When an exit plan is the right call
An exit plan covers the stretch between choosing to leave your business someday and the day it goes on the market. Buyers and their lenders price a company on two things: its documented cash flow, and how well it runs without the owner. If either is weak, the offer drops or the deal stalls in due diligence. A plan shows you which weaknesses exist now, while there is still time to change them.
A plan fits owners who see a sale, a retirement or a family handoff somewhere in the next few years, and owners who just want an honest read on what they have built. We are plain about its limits. It will not create value the numbers do not support, and we will not quote you an inflated sale price to win your listing.
Business owners in Cedar Park, Round Rock and Leander usually start with a free, confidential valuation, then decide whether a full plan is worth the effort.
What an exit plan covers
Starting valuation
Our first step is a free, confidential valuation drawn from three years of your tax returns and profit and loss statements. We normalize those figures to seller's discretionary earnings: your own pay goes back into the total, along with personal costs the company covered and expenses that will not recur. The result is the number buyers will actually start from.
Add-back documentation
Every add-back has to survive a buyer's accountant. We list each one next to the record that supports it, such as a receipt, a payroll report or a vendor invoice, so nothing rests on your memory at the closing table.
Owner-dependency review
We look at which customer relationships, supplier accounts, permits and daily decisions run through you personally. Each one is a risk a buyer will discount. We help you write procedures and move those duties to staff over time.
Lease and contract check
Your lease, key customer contracts and any franchise agreement often contain assignment or change-of-control clauses. We flag the ones that need landlord or franchisor consent so they do not surface late in a deal.
Exit route comparison
A sale to an outside buyer, a partner buyout, a family succession and a sale to a larger company each carry different timing and terms. We lay them side by side and point you to your CPA and attorney for the tax and legal structure.
Written timeline
You get a dated list of tasks, who owns each one, and the point at which the business is ready to list.
Signs it is time to start planning your exit
- Only you know how it runs
- If the business slows down when you take a week off, a buyer will notice in the first meeting. Fixing that takes months, not weeks.
- Personal and business spending are mixed
- Vehicles, phones and family payroll on the company account are common for owners. Left undocumented, they shrink the earnings a buyer will credit.
- One customer carries a large share of revenue
- Concentration in one or two accounts raises the risk a buyer and lender see. Planning gives you time to spread revenue or secure longer contracts.
- Your lease ends in a few years
- Buyers and lenders generally want lease terms that cover the loan period. A short remaining term can hold up acquisition financing.
- You have a date but no number
- Retirement, health or a partner leaving often sets the timeline. Knowing the likely value early tells you whether that date works.
How we build your exit plan
- 1
A no-cost first talk
We start by learning what you want your exit to look like, the timing you have in mind and how the company operates week to week. We can meet at our office, by phone or over video, and everything you share is kept confidential.
- 2
Records in, valuation out
You send us your tax returns, financial statements, lease and main contracts. We recast the earnings and hand back a value range with our reasoning in writing, so the source of every figure is clear.
- 3
Gaps put in order
We list the issues that cut value or could slow a deal, from thin records to heavy reliance on you, in order of importance, and explain why a buyer or lender would care about each.
- 4
Dated plan and progress reviews
We assign tasks and deadlines, then check in at the points we agree on. Once the business is ready, the plan carries directly into our Sell a Business process or a Partner Buyouts and Succession arrangement.
What affects the scope of exit planning
We charge no retainers, and there are no hidden fees. Your opening conversation costs nothing, and neither does the valuation that follows it. What differs from one owner to the next is how much work stands between the business today and a clean sale, and these factors set that scope.
- Condition of your financial records
- Accrual-basis statements that tie to your tax returns need little cleanup. Cash-basis books with commingled spending take longer to recast and document.
- How much depends on you
- An owner who handles sales, estimating and every key account needs a longer handoff than one who already has a manager in place.
- Number of entities and assets
- Separate companies for real estate and operations, or equipment held in your own name, add steps to define what is being sold. Our Business and Property Sales page covers deals that include the building.
- Your timeline
- Five years leaves room to grow earnings and transfer relationships gradually. Twelve months narrows the plan to the fixes with the biggest effect on value.
Exit planning questions
- When is the best time to begin exit planning?
- Earlier than most owners expect. Buyers credit the earnings shown on your latest three years of returns, so a change you make today needs time to appear in those figures. A runway of several years gives you the most room. With a shorter window, we put documentation and the gaps a buyer will spot first at the top of the list.
- Do I have to sell through you if we build a plan together?
- No. The plan is yours to keep and use with any advisor. Many owners do choose us when they are ready to go to market. Listing with us carries no up-front cost, and our fee is earned only when the seller gets paid at closing.
- Will my employees or customers find out I am planning to leave?
- Not from us. Planning work happens between you, us and the advisors you choose, at our office or by phone and video. Later, when outside buyers need details, we use generic listing descriptions and signed confidentiality agreements.
- Do you handle the tax side of an exit?
- We explain how deal structure, such as an asset sale versus a stock sale, changes what a buyer will offer and accept. The tax treatment of those choices belongs to your CPA, and the legal documents belong to your attorney. We work alongside both so the plan reflects their advice.
- What if the valuation comes in lower than I hoped?
- Then you know early, which is the reason to plan. We show which factors pull the number down and which ones you can realistically change within your timeline. Sometimes the honest answer is that waiting a year produces a better result than listing now.
Start with a clear picture of your business
One conversation tells you where the business stands and how much time you need to prepare. The valuation is free and kept confidential.