Thinking Ahead: Why Your Business Needs an Exit Plan
If you wait until you’re ready to leave, you’re already too late.
Most owners obsess over growth—new clients, new products, next quarter’s numbers. Few think about how they (or a partner, or an heir) will one day leave the company. Yet exits happen every day: a buy‑out offer, a surprise illness, a partner who simply burns out. When that day comes, the businesses that thrive are the ones that planned for it.
Three Stories That Could Be Yours
- The 50/50 Deadlock
Two founders split everything down the middle—except an exit clause. When one hit burnout, negotiations spiraled into a year‑long legal battle that drained six figures and tanked morale. A simple buy‑sell agreement might have cost 1% of what they spent fighting. - The Offer on the Table
A competitor came knocking with a seven‑figure acquisition offer. Missing board minutes and unsigned IP assignments delayed due diligence, shaving $300,000 off the final price. Paperwork housekeeping would have taken a long weekend. - The Unplanned Heir
A key owner suffered a disabling accident. His spouse inherited voting shares but had no role in the business—and the bank called a credit line within 60 days. A funded buy‑out clause could have kept control (and the bank) calm.
What an Exit Plan Really Does
- Sets the Rules — Triggers (death, disability, third‑party offer) and valuation formulas are spelled out before emotions run high.
- Protects Value — Clean corporate records and agreed‑upon terms keep buyers, lenders, and partners confident—often adding to sale price.
- Prevents Courtroom Drama — Deadlock doesn’t have to end in litigation when the roadmap is already written.
Notice what’s not here: a 20‑step DIY checklist. That’s on purpose. Crafting a solid exit plan touches corporate law, tax, insurance funding, and sometimes estate planning. The right structure depends on your entity type, ownership mix, growth goals, and yes—New York‑specific rules that can trip up even savvy owners.
Signs You’re Flying Without a Parachute
- Your operating or shareholder agreement is silent on how to price a departing owner’s shares.
- Board minutes are “in someone’s email…somewhere.”
- Life or disability insurance hasn’t been reviewed since you bought your first office coffee maker.
- A verbal handshake is your contingency plan for a buy‑out.
If two or more of these sound familiar, you’re running on luck, not strategy.
A Conversation, Not a Template
There’s no one‑size exit plan. We start by listening: goals, timelines, and what keeps you up at night. Then we draft the leanest set of documents that protect today’s value and adapt to tomorrow’s changes. Most clients are surprised at how affordable peace of mind can be when it’s built in advance, instead of rushed while a deal (or emergency) is underway.
Wondering where your business stands? Feel free to reach out. A 20‑minute call can reveal whether you’re exit‑ready—or one surprise away from costly chaos.
Ready to get started? Let’s talk today.