Exit Planning for Fort Worth Business Owners

The Owners Who Plan Ahead Keep More

Many owners decide to sell after a bad year, a health scare or a long run of burnout. By then the company often looks its worst, and buyers price it that way.

Exit planning flips the order. You decide when and how you want to leave, then spend the time before that date making the company easier to buy and worth more.

One to three years is a common window. That gives you time to post stronger results, which is what buyers look at first.

Start With Three Questions

Before any spreadsheet, a broker will ask you a few personal questions. The answers drive every choice that follows.

1. When do you want to be done? A target year, even a rough one, sets the schedule.
2. How much do you need? Talk with your financial planner about what the sale has to pay for after taxes.
3. What do you want for the people? Some owners care most about price. Others care most about keeping the crew and the name intact.

Pick Your Likely Buyer

Each path out of a business has its own tradeoffs. Knowing which one fits shapes what you work on now.

• Outside buyer. An individual, a competitor or a private equity group. This often brings the highest price because buyers compete.
• Key employees. They know the business, but usually need a lender and a seller note to afford it.
• Family. Keeps the company in the family, though the price and payment terms tend to be softer.
• A partner buyout. Works best when a buy and sell agreement already spells out the price formula.

Fix What Buyers Mark Down

A business valuation early in the plan shows where the company loses value. The usual problems are fixable with time.

• You are the business. Hand off sales, estimating and key customer relationships to a manager who can stay after the sale.
• One customer is too big. Add accounts so no single name makes up an outsized share of revenue.
• The books are messy. Move personal spending out of the company and get monthly statements that match your returns.
• Handshake deals. Put customer, supplier and employee agreements in writing.
• The lease is short. Negotiate an extension or an option so a buyer has room to stay.

Each fix should show up in your results for at least a year before you sell. Buyers trust a track record more than a promise.

Plan the Tax Side Early

Texas does not tax personal income, which helps. Federal tax on a sale is another matter, and the structure you choose can change your bill a great deal.

Asset sales and stock sales are taxed differently. The way the price is split between equipment, goodwill and a non-compete also matters. A CPA with deal experience should weigh in long before you sign a letter of intent.

Keep the Plan Quiet

Exit planning does not mean telling anyone you are selling. Most of the work looks like ordinary good management from the outside.

Hiring a general manager, cleaning up contracts and tightening the books all make the company stronger even if you change your mind about selling.

When the Window Opens

Once the numbers are where you want them, the plan turns into a sale. Your broker prices the company, markets it confidentially and brings offers to the table. Read how that works on our sell your business page.

Wondering about timing? Our guide on how long it takes to sell a business covers what speeds a sale up and what slows it down.

Getting Started

The plan starts with knowing your number. Request a free valuation with the form above, or call (817) 555-0142 to talk about your timeline.