Planning a Successful Exit Strategy

Case Study – Manufacturing Company

Looking ahead to the future of his business, one owner of a company that manufactures parts for the aerospace industry in both the civilian and government sectors wanted to set up a plan to ease into retirement.

Part of this plan involved training a new CEO and handing off responsibilities for day-to-day operations. With our guidance, the owner implemented a stock bonus plan with the aim of retaining and rewarding the CEO, while also incentivizing continued growth of the company.

To help this company retain employees, we also worked with the owner to institute a retirement plan as well as basic employee benefits.

We will continue to consider other exit strategies should it become desirable for the owner to ultimately sell the business. While we discovered that an employee stock ownership program (ESOP) may ultimately be the best fit, we plan further investigation as the situation develops.

And to ensure that the owner’s family will be financially sound should the owner pass away prematurely or simply predecease his wife, we helped him devise a savings and insurance plan for their protection.