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Are You Prepared for Your Next Act

Are You Prepared for Your Next Act

February 01, 2023

Recent research from the Exit Planning Institute shows that only 52% of business owners have a written personal transition plan for what they would do after exiting their business.

Planning for the next phase of an owner’s life and financial planning for independence from the owner’s business is essential to a successful transition and fulfilling post-exit life. For a business owner, exiting a business is more of a personal journey, and owners recognize this. While owners are educated on exit planning and understand the importance of having a plan, they struggle to incorporate the two into a cohesive strategy.

This checklist ensures you have considered your personal goals and aspirations before exiting your business.

Am I Personally Ready to Exit My Business?

  • I have clearly defined my Personal Purpose.
  • I have a written set of Core Values for my business that every member of the organization lives. If I were to leave today, the business would still believe in these Core Values.
  • I have a set of personal Core Values that I base my actions on. I do not make decisions that violate these Core Values.
  • I have gone on a “pre-retirement” break from my business to see how I enjoy spending my time away from my career. After this break, I have updated my plans accordingly, and I feel confident in my next-act plans.
  • I understand my Wealth Gap and know what my business needs to net in a sale for me to achieve my personal next-act goals.
  • I have had a formal business valuation completed on my business in the past year.
  • I have a detailed estate plan in place and understand how taxes from the sale of my business will impact my personal finances.
  • I have held a family meeting to discuss the next generation of the business and the financial impact it will have on my family.
  • I understand the available exit options for my business.

While you may be prepared to sell your business, without planning for your personal life, you will be unfulfilled in your next act, no matter how much you make from the sale of your business. By creating a comprehensive personal plan for your life, you can prepare your business and your finances to suit that plan. Without first knowing where you want to be in your future, you cannot successfully craft the roadmap to get there.

Securities and investment advisory services offered through qualified registered representatives of MML Investors Services, LLC. Member SIPC. Integrity Benefit Partners is not a subsidiary or affiliate of MML Investors Services, LLC, or its affiliated companies. 200 Clarendon Street, 19th & 25th Floors. Boston, MA 02116. 617-585-4500. CRN202507-2694019.