Succession and Exit Planning for Michigan Business Owners
We help position your business for the best sale price or smooth transition to family/employees.
Ready to exit in 3-5 years? Need to prepare for unexpected departure? You've built this business over decades. Now you're thinking about life after business - retirement, health concerns, or just wanting something new.Proper exit planning takes 3-5 years. Start now to maximize value and minimize regrets.
Maximize sale price
3-5 Year process
100% Confidential
All exit options covered
What Happens to Your Business When You're Gone?
You've built something amazing. But you have no idea how to let go - or what happens if you're forced to.
Nobody Can Run This But Me
The owner dependency trapTake a week off and problems pile up. Key decisions wait for your return. Customers only want to deal with you. Without you, the business worth drops 50-75%.
Someday I'll Figure It Out
The Missing Exit StrategyWant to retire at 65? 70? Someday? No concrete plan. Kids don’t want the business. Employees can’t afford it. Not sure what it’s worth. Time keeps passing.
What If Something Happens to Me?
The Health Wake-Up CallThat minor health scare was a wake-up call. Your spouse wants you to slow down. You’ve seen others forced to sell quickly for pennies. What if something happens?
I Don't Love This Anymore
The passion has fadedThe passion is fading. You’re tired of the same problems. Want to try something new. But golden handcuffs keep you trapped. Can’t leave money on the table.
My Family Wouldn't Know What to Do
The Nightmare ScenarioWhat if you must exit suddenly – health, family, finances? Your family wouldn’t know what to do. The business would collapse. Years of work lost.
Most business owners get one chance to exit right. Those who plan ahead get 2-3x more value than those forced to sell quickly. Every year you wait costs you options and money.
Schedule A Meeting TodayHow We Prepare Your Perfect Exit
We help you plan perfect exit and sucession
What We Accomplish:
Maximum business value
Whether selling or transitioning, value matters. We identify and improve the key drivers that buyers or successors evaluate. Most clients see 30-50% value increase.
Mulitiple exit options
Sell to competitor? Private equity? Employees? Family? We explore all options and position you for the best outcome. Options create negotiating power.
Smooth transition process
Exits fail when rushed. We create timelines that work – training successors, documenting systems, reducing owner dependency. Everything planned, nothing left to chance.
Personal financial security
What do you need to live comfortably? We ensure your exit provides financial freedom, not just a big number. Tax planning, deal structure, ongoing income – all considered.
Legacy protection
Your business is more than money. We help protect employees, customers, and culture through the transition. Exit with pride, not regret.
Why Business Owners Can't Do This Alone:
You are too close to see. After decades running it, you can't see what buyers see. We provide the outside perspective that reveals true value and problems.
You don't know the process. Most owners exit once. We've guided dozens. From valuation through negotiation to closing, experience matters.
You need confidentiality. Employees, customers, competitiors can't know. We protect your plans while positioning for success. One leak can destroy value.
You're still running the business. Exit planning while operating is nearly impossible. We handle the planning while you maintain performance.
Getting Started Is Simple
Start planning your perfect exit:
1. Confidential Exit Consultation (90 Minutes)
- Discuss your goals and timeline
- Review business readiness
- Explore exit options
- Complete confidentiality assured
2. Business Valuation (If You Proceed)
- Professional assessment
- Gap analysis to goals
- Value improvement plan
- Exit timeline creation
3. Value Building Phase
- Implement improvements
- Reduce owner dependency
- Strengthen operations
- Track progress quarterly
4. Exit Execution
- Market professionally
- Negotiate optimal terms
- Manage due diligence
- Close successfully
Why Michigan Businesses Trust Us
Why trust us with you exit:
Complete Confidentiality: Your exit plans stay secret until you're ready. We've never had a leak damage a deal.
Aligned Interests: We succeed when you get maximum value. Our fee structure ensures we fight for every dollar.
Full-Service Guidance: From initial planning through closing celebration, we're with you. Not just advisors - partners.
Michigan Market Knowledge: We know local buyers, values, and deal structures. National firms miss regional opportunities.
Your Legacy Matters: It's not just about money. We help protect what you've built while securing your future.
Frequently Asked Questions
Common questions about succession and exit planning in Michigan
When should I start exit planning?
Ideally 3-5 years before your desired exit, but the best time is now – regardless of your timeline. Value building takes time. Documenting systems, reducing owner dependency, and improving financials don’t happen overnight. Michigan Business Advocates typically sees 30-50% value increases when owners start early. Even if you’re 10 years from retirement, starting now means more options and better outcomes.
How much is my business worth?
Most Michigan business owners overestimate by 40-60%. True value depends on profits, growth trajectory, systems, and market conditions. We provide realistic valuations based on actual buyer behavior, not wishful thinking. Michigan businesses typically sell for 2-4x adjusted earnings for small businesses, 4-7x for larger ones. Your industry, location, and owner dependency significantly impact these multiples.
Can I keep my exit plans confidential?
Absolutely. Confidentiality is critical – employees, customers, and competitors learning too early can destroy value. Michigan Business Advocates protects your plans throughout the process using NDAs, coded communications, and careful stakeholder management. We can be your “strategic advisor” if anyone asks. Many Michigan businesses have successfully transitioned without anyone knowing until the announcement.
What are my exit options beyond selling?
Michigan business owners have multiple paths: strategic sale to competitors, financial buyers (private equity), management buyout, employee ownership (ESOP), family transition, or gradual exit through passive income. Each has pros and cons. ESOPs work well for Michigan manufacturers with 20+ employees. Family transitions succeed with proper planning. We explore all options to find your best fit.
What if I need to exit suddenly?
Emergency exits happen – health crises, divorce, partnership disputes. Having a plan dramatically improves outcomes. Michigan Business Advocates creates “fire sale” avoidance strategies including buy-sell agreements, key person insurance, and documented systems. We’ve helped Michigan owners facing sudden exits preserve 50-70% more value than those without plans.
How do you increase my business value before exit?
We focus on what Michigan buyers pay premiums for: reducing owner dependency, documenting systems, improving margins, diversifying customers, strengthening management, and cleaning up finances. Manufacturing businesses benefit from equipment modernization. Service businesses need systematized processes. Most Michigan businesses see 30-50% value increases through strategic improvements.
What about taxes when I sell my Michigan business?
Structure matters enormously. Asset sales vs. stock sales have different tax implications. Michigan has no state inheritance tax, but federal capital gains apply. Seller financing, earnouts, and charitable trusts can reduce tax burden. We work with Michigan tax advisors to legally minimize your taxes – often saving hundreds of thousands.
Can family business transitions really work?
Yes, with proper planning. Michigan has thousands of successful multi-generational businesses. Clear roles, fair compensation, gradual responsibility transfer, and outside accountability help preserve both business and family. Michigan Business Advocates specializes in navigating family dynamics while ensuring business continuity. The key is starting early and communicating openly.
What's the biggest mistake Michigan business owners make in exit planning?
Waiting too long to start. Michigan’s automotive suppliers learned this during industry downturns – those with succession plans pivoted successfully, others were forced to close. Starting planning only when ready to exit leaves no time for value building, tax optimization, or finding the right buyer. Early planning means choices; late planning means desperation.
How much does succession planning cost in Michigan?
Initial planning typically runs $5,000-25,000 depending on complexity. Full exit execution including legal, tax, and broker fees ranges from 5-15% of sale price. However, Michigan Business Advocates often identifies value improvements far exceeding costs. One Detroit manufacturer spent $15,000 on planning but sold for $400,000 more than initially valued.
What happens to my employees when I sell?
Depends on the buyer and structure. Strategic buyers may consolidate; financial buyers typically retain staff. Employee ownership (ESOP) provides the most security. Michigan Business Advocates prioritizes employee protection in negotiations. We’ve structured deals with employment guarantees, retention bonuses, and severance packages. Your legacy includes how you treat those who helped build your business.
Can I sell if I'm the only one who knows the business?
Owner dependency kills deals and value. Buyers won’t pay premium prices for a “job.” Michigan Business Advocates helps transfer your knowledge through documented processes, trained managers, and systematic operations. We’ve helped solo Michigan owners build management teams and systems that increased sale prices by 40-60%.
What's different about succession planning for Michigan manufacturers?
Michigan manufacturing faces unique challenges: equipment valuation, technical knowledge transfer, supplier relationship management, and EV transition impacts. Property tax uncapping on real estate transfers can be costly. Union considerations matter. Michigan Business Advocates understands these sector-specific issues and connects you with specialized resources through our manufacturing network.
How long does the actual sale process take?
Once you decide to sell, expect 6-12 months for completion. Marketing takes 2-3 months, negotiations 1-2 months, due diligence 2-3 months, and closing 1-2 months. Michigan Business Advocates manages timelines to maintain confidentiality and business performance. Rushing leads to lower prices; proper pacing maximizes value.
What if my kids don't want the business?
Common Michigan challenge – kids pursue different careers or move away. Options include management buyout, ESOP, strategic sale, or hiring outside leadership while retaining ownership. Michigan Business Advocates helps families navigate these decisions without guilt or conflict. Sometimes the best legacy is a successful sale that funds retirement and grandchildren’s education.
Should I tell my employees about succession planning?
Timing is critical. Tell key managers early to involve them in planning and retention. Inform broader staff only when necessary. Michigan Business Advocates develops communication strategies that maintain morale and productivity. We’ve seen Michigan businesses thrive during transitions with proper messaging. Transparency builds trust, but oversharing creates instability.