With exit strategy planning, it’s never too early to begin. Thinking about the future, no matter the stage of your business, is crucial – even if a successful transition is 20 years away. 

What's your ideal outcome?

Preparation is everything for transitions that work for you, your family, and your clients. This is, for most, a once-in-a-lifetime event. Gathering all the information you need and asking yourself all the right questions helps to ensure a positive outcome for all.

“Building out a framework for what you want your exit to look like is a good first step,” CFO Neepa Vagadia said.

CFO Josh Ifergan agreed, “The feeling of going through a succession alone can be daunting and unknown. That is why we are here to help guide you and advise you on best practice.”

Transition Options to Consider

  • Sell your book and retire
  • Transition your business to a successor
  • Sell your practice and stay on

What's it all worth?

Taking an objective look at what your practice is worth, your personal financial picture, and an audit of your business will uncover insights and information to drive your next steps. You’ll want a strategic partner to help you dig into all that data, serve as a sounding board and offer insight to navigate options and ensure an optimal outcome.

If you’re going to sell your business – whether you retire or sell and stay – you’ll need to pull together a valuation of your business. You’ll also need to evaluate tax structures for each scenario you may be planning, both corporate and personal.

Oftentimes, advisors get to view their role in an entirely different light during the valuation and staging a business for sale process. Determining your business's worth may also change how you think about transitioning.

“What we've learned from our work with a lot of advisors is that they are looking for help, an accountability partner, and a sounding board. We talk through options and nothing is off the table. If they don't know which step to take next, we are their resource and strategic partner,” Neepa said.

Clarity about exactly where you are, and what your business is worth, is a foundational part of charting your course forward. Figuring out the right fit and the right timing is both an art and a practical exercise. Having a partner with decades of experience in successful transitions is a key component to your success.

When it comes to preparing an exit, the earlier the better


When should you prepare?

It’s never too early to prepare for a transition. There are so many elements that need to come together for you to realize the value of the hard work you’ve put into your business, while charting a path forward.

“When it comes to preparing an exit, the earlier the better, because we can make the operational changes over a longer period of time. If not, we can’t truly maximize the practice,” Neepa said.

It can feel overwhelming. However, with the right partner exit strategy planning can be an illuminating process that opens up new vistas of possibility you may have never entertained before.

With that in mind, LPL offers CFO Solutions, a strategic partner who focuses exclusively on translating your business data into the kind of actionable insights and plans that help make your exit strategy a smooth process. If you’re thinking about selling, exiting, or retiring, schedule a consultation with CFO Solutions today. Schedule now »