Building a Team to Assist Your Exit

When you’re ready to start planning your exit, you need a qualified team to assist you. It’s best to start building that team well in advance of your exit.

First, there are several reasons to build a team. It starts with creating a multidisciplinary effort consisting of both internal staff and external advisors. Those external advisors can include legal, corporate finance, accounting, taxation and technical or environmental experts.

The second reason for building a team involves the adversarial process of strategically planning your exit. Understand that the potential investor(s) want to pay the least amount for your business and want the greatest warranties and representations. You, understandably, want to earn the highest amount for the sale of your business. A better option for many business owners is to implement an intermediary – an independent third party who can help them achieve an optimum sale and transition.


Who should be on your Exit Team?

You’ll definitely need a legal advisor. They will be able to manage the structure of your exit strategy and to draft all legal documents necessary. Your legal advisor will also share the pertinent disclosure information to investors and satisfy everyone’s conditions for closing.

You will also want both an accountant and a taxation expert. You probably already work with an account or CPA. By adding a tax expert to your exit team you’ll be able to identify any possible ‘skeletons’ in your business closet. Your tax expert will also advise you on the possible advantages of a holding company structure, as well as to analyze taxation dimensions of estate planning issues. Plus, they will be able to advise you on your upcoming transition.

You also will need a financial advisor on your Exit Team. An advisor can help you with your business exit plan, including creating a valuation for your company. They will be able to prepare your information disclosures, but also they’ll design and run the process and act as your negotiator and intermediary, resolving the concerns of potential investors while keeping you, the business owner, satisfied.


Covenant Consulting Group is a financial advisor. We work with many Exit Teams to help our clients achieve the most successful transition from their business, and we are available to you!