Business owners are often too busy to realize the benefit of developing an exit plan in advance. For most favorable results, it is always best to plan ahead. Whether an entrepreneur chooses to pass the operation onto their beneficiaries, go public with stock or just liquidate the business, planning ahead will always produce the most lucrative outcome.

An exit strategy can be customized according to your personal objectives, along with the interests of your heirs. There are many alternatives that may be suitable depending on your circumstances.

One popular exit strategy could be to liquidate the establishment. You could propose a clear-cut, suitable option for interested buyers whose knowledge, skills, or experience are a key asset of the business. When you elect to liquidate, your ongoing supply of capital is compromised, and a portion of your assets may only sell for a fraction of their worth.

Another useful exit strategy is to sell to other family members. But remember that this is a complicated process that must be dealt with wisely. Consideration needs to be given to the interests and abilities of your heirs. It is typically recommended to establish a detailed training program for would-be heirs. You could elect to give the business to your successors as a gift or have them buy it. You must also attention to the needs of select workers and heirs who do not share in the business.

You could sell the establishment to your employees or partners. Regardless of the reason for the sale, a detailed buy/sell agreement is a must. This document needs to show who will buy and operate the operation, how it will be financed, and who will get the revenue from the transaction. The buy/sell contract must also show how your living successors will share the wealth and operating control.

If you cannot find an attracted buyer within the family or the business, you could elect to sell to an outside party. The buyer could be an existing entrepreneur, a competitor, or perhaps someone who wants to invest in an established company. This selling option would require you to assign a credible business broker, financial professional, CPA, and a lawyer to help with the sale and assist you on how to get prospective buyers.

Going public with company stock may be another suitable option for selling your company. This strategy could allow you to maintain liquidity, and still let you have some control. But you must recognize that when you publicly sell stock, you are legally bound to have the interests of the shareholders as priority. Like all exit strategies, selling public stock takes careful planning. You will be under the close scrutiny of financial professionals and investors, so it is essential to build a strong track record.

Your family business is the primary source of your personal revenue and finances. As such, it is critical that your continuation tie in with your long-term financial goals. Be sure to plan ahead and hire a reputable team of financial specialists to assist you with the sale.