ServicesExit Planning
Exit Planning in Lockhart
Most owners think about leaving a business years before they actually do. We help you use that time well: we find what a buyer will discount, put a value on what you have now and lay out the changes that raise it before you ever go to market.
What exit planning is and when it makes sense
Exit planning is the work done before a sale, not during it. A buyer and their lender will study three years of tax returns, your profit and loss statements and your customer list. Anything that looks risky to them, such as one client making up 40 percent of revenue or an owner who personally handles every key account, shows up as a lower offer or a tougher financing structure. A plan gives you time to change those things while they still count.
The right time to start is usually two to five years before you want out. That window lets you produce clean financial years, train a manager and settle lease or partner questions. If you are already ready to list, our Sell a Business page covers that path instead.
One person from our small team stays your contact from the first valuation through the plan, and through the sale if you choose to list with us. You will not have to explain your business twice.
What the plan covers
- Baseline valuation
- We recast your financials to find seller's discretionary earnings, adding back one-time costs and owner perks that a new owner would not carry. That number, multiplied by what comparable businesses sell for, gives you a realistic starting value.
- Risk review from a buyer's side
- We look for the things buyers and lenders mark down: customer concentration, owner dependence, undocumented processes, a lease with little term left and messy books. Each one gets a note on why it matters and what would fix it.
- Value-building priorities
- Not every change is worth the effort. We rank improvements by how much they are likely to move the price against what they cost you in time and money.
- Timeline and exit route
- We map the options: an outside buyer, a sale to employees, a family transfer or a partner buyout. If a partner or family member is the likely buyer, our Partner Buyouts and Succession work picks up from here.
- Deal structure basics
- We explain how an asset sale differs from a stock sale, how seller financing and earn-outs work, and why your CPA and attorney should weigh in on taxes before you sign anything.
Signs it is time to start planning
You want out within five years
Lenders typically want to see consistent recent years of earnings. Starting now means those years are the ones you planned for.
The business runs through you
If customers call your cell phone and nobody else can price a job, a buyer sees a business that may walk out the door with you. That gets fixed with time, not paperwork.
Your books mix personal and business costs
Add-backs are normal, but too many of them make buyers doubt the numbers. Cleaner books mean fewer questions in due diligence.
A partner or family member wants a different future
Disagreements over timing and price are easier to settle with an agreed valuation method in place before anyone is under pressure.
You have no idea what the business is worth
Many owners guess high or low by a wide margin. A real number is the starting point for every other decision.
What affects the cost of exit planning
Your first valuation costs nothing and stays confidential. For anything past that, we walk you through the cost by phone before any work starts, with no retainers and no hidden fees. Should the plan end in a sale, listing with us requires no money at the start, since our fee is earned only at closing, once the seller has been paid.
Condition of your financial records
Organized statements that match your tax returns take far less time to recast than years of mixed accounts or missing records.
Size and complexity of the business
A single-location service company is simpler to assess than a business with several sites, real estate or multiple product lines.
Number of owners
Partnerships add steps: buy-sell agreements, differing goals and sometimes separate valuations for each owner's interest.
How long the plan runs
A one-time plan is lighter than ongoing check-ins over several years as you work through the changes.
How we build your exit plan
- 1
Confidential first conversation
We talk by phone, by video or at our office about your goals, your timeline and the business. Nothing you share leaves our team.
- 2
Document review and valuation
You send tax returns, financial statements and key contracts. We recast the earnings and give you a written valuation with the reasoning behind it.
- 3
Written plan with priorities
We deliver a plan that lists each risk, the fix and a rough order to tackle them in. You decide what to act on.
- 4
Check-ins as you go
We revisit the numbers as new financial years close, so you can see whether the changes are showing up in value. When the business is ready, the same person can move you straight into a listing.
Exit planning questions
How far ahead should I start?
Two to five years is a good window for most small businesses. That is enough time to produce clean financial years and reduce dependence on you. If you have less time, we focus on the changes that pay off fastest.
Will my employees or customers find out?
Not from us. Planning work is confidential and happens between you and our team, at our office or by phone and video. We never contact your staff, customers or suppliers without your say-so.
Do I have to sell through you if I do the plan?
No. The plan is yours to use however you like. Many owners do choose to list with us later because the same person already knows their business.
Is this the same as a business valuation?
A valuation is one part of it. Exit planning adds the buyer-side risk review, a ranked list of improvements and a timeline. If you only need a number, our Business Valuation page explains that service on its own.
Do you give tax or legal advice?
We explain how deal structure affects you, such as asset versus stock sales and seller financing, so you know what to ask. Your CPA and attorney should make the final tax and legal calls, and we are glad to work alongside them.
Find out where your business stands today
A free, confidential valuation is the first step in any exit plan. Owners in Lockhart, San Marcos, Kyle and the surrounding area can talk it through with us by phone or video.