Q:    What is a Strategic Exit Plan (SEP)?

A:       A  Strategic Exit Plan (SEP) is a comprehensive road map that helps business owners successfully and profitably exit a privately held business. An exit plan asks and answers all of the critical questions that a business owner and his or her advisors must consider.

Q:    Why do I need an SEP?

A:        Statistics show that 75% of all business owners are dissatisfied with their life situation one year after the sale of their business.  While there are almost as many reasons as owners the one constant in the survey was “why” they were dissatisfied. The answer, across the board, was a lack of planning before and understanding of the process.  Another significant answer was the lack of a clear direction for their personal “next steps” after the sale.

Q:    Is a SEP required to sell my business?

A:       Absolutely not! This process is strictly voluntary on the part of the owner. But when properly executed this Strategic Exit Plan will:  maximize the value of the business, create consistent and achievable goals, secure key employees, reduce stakeholder stress and create a clear path for the owner after the transaction.

Q:    Is a Strategic Exit Plan just a fancy way to say “Retirement”.

A:       No. The SEP creates a road map to reach any destination a business owner might desire. Retirement is just one of many destinations.  

Q:      Do I need an Exit Planner to create an SEP?

A:       No, you don’t. The business owner can certainly create the plan. The difficulty is that most business owners lack the time and objectivity necessary to design, create and implement the SEP. The Certified Exit Advisor is experienced in the broad spectrum of skills needed to produce a SEP.

Q:       Why don’t I just wait until I am ready to make a change, to start thinking about creating a SEP?

A:        An effective SEP takes anywhere from 1-4 years to complete. While the plan only takes a couple of months to produce, the recommendations in the plan may take a year or two more to complete.  Most buyers want the existing owner to stay around for at least a year after the transaction, so you have to add that in as well.