One day, you will leave your business.

Ideally, you will go out on your own accord, but the reality is most business exits are unplanned. The impact of your exit, and the legacy of your business, entirely depends on how you approach the inevitable.

Would you rather go out on your terms, or leave a lifetime of hard work to someone who may not share your values, passion, or vision?

Creating an exit strategy is no easy feat, but through careful planning, you ensure that your goals and hopes for your company will remain intact, even if your exit is unplanned.

At The Menard Financial Group, LLC, we’ve created a 7 Step Roadmap that will ease your business’ transition to a future without you.

Business Exit Strategy Plan | Menard Financial Group In TX

Exit Planning Scorecard


Interested in seeing how prepared you are for your business exit? Try our Exit Planning Scorecard.

Print Scorecard

  • Step 1: Setting Exit Objectives


    Score (0-5)

    I have clear exit objectives and have prioritized them


    I know how much longer I want to work in the business before retiring or moving on


    I know the annual after-tax income I want during retirement (in today's dollars)


    I know exactly to whom I want to transfer the business


    I have involved both key employees and family members in my exit planning


    My business constitutes less than 50% of my total retirement plan


    I have the legal, tax, financial planning, valuation knowledge or a team of advisors available to assist with my exit plan


    Step 1 Total (Max. 35)


  • Step 2: Determining Value/Price


    Score (0-5)

    I have had my company value appraised by a certified appraiser


    I have had an appraisal reviewed within the last two years


    I have a buy/sell agreement


    My buy/sell agreement is funded


    My buys/sell agreement adequately protects my heirs, my business, and my partners


    My buy/sell agreement has been reviewed within the last two years


    Step 2 Total (Max. 30)


  • Step 3: Preserving, Protecting, and Promoting Value


    Score (0-5)

    I prepare business plans annually


    I review my business plans regularly and share them with my key advisors


    I have no unpaid claims with the IRS (i.e. payroll taxes) or existing creditors or pending lawsuits


    I have key employee incentive plans in place


    I track and measure key operational and financial figures that dictate the company's performance


    I am consistently implementing focused initiatives to improve my company's financial performance


    Step 3 Total (Max. 30)


  • Step 4: Business Contingency Plan


    Score (0-5)

    I discuss financial results, marketing plans, financing and operations openly with key employees and family members


    I have a strong secondary management team in place


    I have personal disability income insurance coverage in place


    I have a stay-bonus plan in place


    I  have business overhead expense coverage in place


    My legal matters are in order and my corporate "shield" is being properly maintained and is active with the Texas Secretary of State


    Step 4 Total (Max. 30)


  • Steps 5 & 6: Converting Business Value to Cash, and Selling the Business for a Note


    Score (0-5)

    I have a strong management team in place 


    I know how to manage the selling process to maximize the sale of my business


    I know how to minimize the income tax consequences to myself and a potential buyer


    I know how to structure a deal to optimize my chances of getting the full value out of my business


    Steps 5 & 6 Total (Max. 20)


  • Step 7: Wealth Preservation Plan


    Score (0-5)

    My will matches my estate wishes


    My assets are titled correctly and coordinated with my beneficiary designations


    All necessary trusts/strategies have been established and funded


    My ancillary documents (Living Will, Financial/Health Power of Attorney) are current


    I have effective tax planning strategies  in place


    Step 7 Total (Max. 25)