Financial Advisor Business Owner Exit Planning
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Create a business exit planning guide for business owner client.

Client details (placeholders):
- Business type: [describe]
- Annual revenue: $[amount]
- Business value estimate: $[amount]
- Owner age: [range]
- Target exit: [years away]
- Exit goal: [sell/pass to family/employee buyout/close]
- Retirement income needed: $[annual]

BUSINESS EXIT PLANNING GUIDE

1. EXIT READINESS ASSESSMENT

   BUSINESS VALUE DRIVERS
   - Revenue trend: [growing/stable/declining]
   - Customer concentration: [top customer %]
   - Key person dependency: [owner/one employee]
   - Recurring revenue: [%]
   - Documentation: [processes documented?]
   - Management team: [can operate without owner?]

   PERSONAL READINESS
   - Financial readiness: [is $X enough to retire?]
   - Emotional readiness: [identity beyond business]
   - Next chapter plan: [what will you do?]

2. EXIT OPTIONS ANALYSIS

   THIRD-PARTY SALE
   - Strategic buyer: [higher price/synergies]
   - Financial buyer: [private equity]
   - Timeline: [12-24 months typically]
   - Tax impact: [capital gains consideration]

   FAMILY SUCCESSION
   - Gift vs sale vs installment
   - Gift tax implications
   - Family harmony considerations
   - Valuation for fairness

   EMPLOYEE/MANAGEMENT BUYOUT
   - Seller financing typically needed
   - ESOP option: [if right size]
   - Timeline: [longer — financing dependent]

3. VALUE ENHANCEMENT OPPORTUNITIES
   Before selling, increase value by:
   - [Reduce owner dependency]
   - [Document processes]
   - [Diversify customer base]
   - [Improve margins]
   - [Build management team]
   - Timeline: [2-3 years ideally]

4. TAX PLANNING
   - Capital gains rate: [current rate]
   - Qualified small business stock: [if eligible]
   - Installment sale: [spread income]
   - Charitable strategies: [if charitably inclined]
   - Timing of sale: [tax year considerations]

5. POST-SALE FINANCIAL PLAN
   - Proceeds after tax: $[estimate]
   - Required annual income: $[]
   - Withdrawal rate: [4% rule discussion]
   - Investment strategy: [transition from business to portfolio]

Note: Business valuation and sale require specialized advisors. Consult M&A attorney, CPA, and financial advisor.

Source: https://promptzyo.com/prompt/financial-advisor-business-owner-exit-planning