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Category: Exit Planning

Strategies, insights, and tools to help business owners plan for and execute a successful exit. From succession planning to valuation and deal structure, these resources support advisors guiding owners through one of the most critical transitions of their lives.

Why Business Owners Delay Exit Planning

Posted on by Lindsay Giachetti

The Real Reason Owners Delay Exit Planning—and How to Break Through

Many owners assume that planning for their exit begins once they’ve decided to leave. But the reality is that effective planning starts well before that decision. By engaging owners early and reinforcing the value of growth-focused strategies, advisors can ensure a smoother transition and more favorable outcomes for all involved.

“I’ll plan my exit when I’m ready to leave.”

This common mindset among business owners is one of the biggest challenges advisors face. But overcoming this misperception doesn’t require magic—it requires clear, consistent communication that educates and empowers.

At BEI, we regularly hear from advisors looking for a reliable way to engage reluctant business owners in planning their exits. While we have proven tools to help convert hesitation into action, the first step is understanding why so many owners delay planning in the first place.

Why Exit Planning Can’t Wait: The Risk of an Unprepared Business

Most business owners know their companies aren’t ready to run without them—yet many still postpone planning. Why? Because they assume they’ll have time to prepare when the moment to exit finally arrives.

But experienced advisors know better: preparing a business for a successful exit takes years, not months. The earlier owners start, the more control they have over the outcome.

“Owners know what needs to happen. They just don’t look at it closely—or think it has to happen today. I tell them, ‘This is your final exam. Will you eat steak or Top Ramen for the rest of your life? Let’s do the work.’ And they do.” – Marko Mijuskovic, Senior Partner at WestPac Wealth Partners, CExP™ and BEI Member

Helping Owners Move Past “Not Yet”

To shift this mindset, advisors must help owners see the realities of waiting too long. That starts by clearly communicating three critical truths:

  1. There’s often a significant gap between what owners have and what they’ll need to exit on their terms.
  2. Bridging that gap takes time and consistent effort.
  3. Exit Planning isn’t just about leaving—it’s about growing. Enhancing business value and cash flow benefits owners no matter when they exit or what path they take.

This is the heart of Exit Planning: helping owners build stronger, more valuable businesses—whether they’re looking to exit in 3 years or 10. And that’s the value you bring as an advisor.

You’re not just offering a service. You’re guiding business owners toward better outcomes, greater security, and more freedom. But to do that, you need to replace uncertainty with education—and replace hesitation with clarity.

Consistent Communication = Better Engagement

One meeting isn’t enough. The most effective advisors don’t rely on one-off conversations to spark action—they use ongoing, branded content to deliver their message at scale.

Our top-performing Members consistently share planning insights with 500+ owners and advisors at least twice a month. This kind of sustained communication helps dismantle the belief that planning can wait—and instead reinforces the benefits of taking action now.

“If you have an important point to make, don’t try to be subtle or clever. Use a pile driver. Hit the point once. Then come back and hit it again. Then hit it a third time—a tremendous whack.” –Winston Churchill

Closing the Communication Gap

At the end of the day, owner inaction isn’t about unwillingness—it’s about unfamiliarity. Advisors who succeed are those who make Exit Planning familiar, relevant, and urgent through ongoing education and encouragement.

If you want to help business owners act, keep showing up with valuable information, insights, and motivation. Because when owners understand the stakes—and see the benefits—they’ll start planning with purpose.

Business owner, empowered by successful Exit Planning, sailing into the sunset.

Ready to turn hesitation into action?

Start equipping business owners with the tools and insights they need—while positioning yourself as the trusted guide in their Exit Planning journey.

How to Save a Legacy Business: Lessons from Sam Wo’s Possible Closure

Posted on by Lindsay Giachetti

A 116 year-old San Francisco Chinatown restaurant may close at the end of 2024... but the exit story could have been different.

The story of Sam Wo Restaurant, a 116-year-old Chinatown institution in San Francisco, is a bittersweet reflection of the complexities surrounding family-owned businesses and the necessity of proactive Exit Planning. This legendary eatery, known for its comforting Cantonese dishes and historic quirks, now faces the imminent possibility of closure as its current owner, David Ho, prepares for retirement.

For Exit Planning advisors, Sam Wo offers a compelling case study in the importance of foresight and strategic planning when it comes to navigating business transitions. While its fate is not yet sealed, the challenges the restaurant is grappling with highlight what can happen when long-term succession plans are left unresolved. At the same time, there are glimmers of hope—opportunities for legacy preservation, community revitalization, and creative adaptation that could serve as inspiration for both advisors and business owners alike.

Nighttime photo of closed shop with graffitied door in San Francisco's Chinatown.

The High Stakes of Business Transition Planning

Sam Wo’s situation underscores a fundamental truth: Every business, no matter how storied or successful, will eventually face a transition point. David Ho’s four decades of dedication to Sam Wo have created a brand synonymous with Chinatown culture. But as he reaches retirement, he finds himself in a bind—without an heir or a successor committed to carrying the torch, the restaurant risks fading into memory.

Despite interest from potential buyers, none has yet emerged with the skills, vision, and resources required to uphold the restaurant’s legacy. This hesitation stems from multiple factors: the physically demanding nature of restaurant work, the need to preserve Sam Wo’s unique cooking techniques, and the financial risk of investing in a business industry that operates on tight margins.

Exit Planning advisors can use this case to help business owners recognize the cost of delayed planning. When business transition efforts are rushed or reactive, critical opportunities to identify and groom successors, secure buy-in from stakeholders, and align the business with evolving market demands are often missed.

What Could Have Been: Missed Business Exit Opportunities at Sam Wo

Had proactive Exit planning been implemented earlier, Sam Wo’s current predicament might have been avoided. Some key exit strategies that could have mitigated this crisis include:

1. Building a Strong Succession Pipeline

David Ho’s children, Jason and Julie, were involved in the restaurant as young adults but eventually pursued careers outside the business. While this decision is valid and common, it highlights the importance of identifying potential successors early. Business advisors could have encouraged Ho to look beyond his immediate family to train employees, community members, or even external professionals who might have been passionate about carrying on the Sam Wo tradition.

2. Leveraging Partnerships and Investments

The 2015 reopening of Sam Wo after its 2012 closure was made possible by partnering with investors, including co-owner Steven Lee. This collaboration was pivotal in reviving the brand. A similar strategy could have been applied earlier to bring in younger partners or co-owners who shared Ho’s vision and could transition into leadership roles.

3. Diversifying Revenue Streams

Lee’s idea of transforming Sam Wo into a packaged food line demonstrates how legacy businesses can adapt to modern markets. If this had been explored earlier, it could have reduced dependence on the physical restaurant and provided a more scalable revenue model.

4. Documenting Legacy and Processes

The “Sam Wo way of cooking” is described as simple, yet distinctive. Comprehensive documentation of recipes, techniques, and customer service standards could have made it easier for potential successors to maintain the brand’s authenticity. Exit Planning advisors might have facilitated this by helping Ho create a formal operational handbook and training programs as part of the succession strategy.

5. Engaging the Community

Sam Wo is deeply rooted in Chinatown’s history and culture, and its potential closure would represent a loss not just for its owners but for the community at large. Proactively involving local stakeholders in discussions about the restaurant’s future could have opened doors to creative solutions, such as community ownership models or nonprofit partnerships.

Arial photo from above of San Francisco Chinatown with lanterns spanning Grant Avenue.

Key Takeaways for Exit Planning Advisors

Sam Wo’s story is a cautionary tale for the countless small business owners who pour their lives into their ventures without a clear exit strategy. Exit Planning advisors play a critical role in guiding owners through this process, ensuring that transitions are smooth, strategic, and value-driven. Key lessons from Sam Wo include:

        • Start Early: Succession planning should begin years, not months, before retirement. Encourage business owners to identify potential successors and create development plans to prepare them for leadership.

        • Preserve Intangible Assets: A business’s value often extends beyond its financials. Document its unique practices, values, and culture to ensure these elements can be passed down to future generations.

        • Embrace Flexibility: The modern marketplace offers myriad opportunities for reinvention. Encourage clients to explore creative strategies—such as franchising, licensing, or rebranding—that align with their goals and values.

        • Engage Stakeholders: Transition planning is a collaborative effort. By involving employees, community members, and other stakeholders in the process, owners can build goodwill and discover innovative solutions.

Drone arial photo view of Chinatown with Coit Tower and San Francisco Bay in the distance

What-If Scenarios: Reimagining Sam Wo’s Future

Even now, all hope is not lost. Exit Planning advisors can draw lessons from Sam Wo’s challenges to offer creative paths forward. Here are some “what-if” scenarios that demonstrate how legacy businesses can chart a hopeful course:

Community-Driven Revival:

What if Sam Wo became a cooperative or nonprofit venture? By transitioning ownership to a collective of local stakeholders—such as Chinatown community members, cultural organizations, or even loyal customers—the restaurant could continue to operate as a cultural landmark. Such a model would not only preserve the legacy but also reinforce the importance of Chinatown’s rich history.

Strategic Collaboration with Emerging Talent:

What if a partnership with a young, innovative chef or restauranteur was forged? Sam Wo’s reputation and historical appeal could attract culinary talent eager to make their mark while learning from Ho’s expertise. Business exit advisors could facilitate mentorship programs to ease the transition and ensure continuity.

A Modernized Brand Expansion:

What if Sam Wo leaned into its heritage by expanding its brand beyond the restaurant’s walls? A line of frozen meals, recipe books, or branded merchandise could introduce Sam Wo’s flavors to a global audience, creating new revenue streams while preserving its cultural identity.

Landmark Protection Efforts:

What if Sam Wo became a designated cultural landmark? Business advisors could assist in lobbying for historic preservation status, ensuring that the restaurant remains a cornerstone of Chinatown’s tourism and cultural offerings.

A Legacy Worth Saving

Sam Wo is more than a restaurant; it’s a living piece of San Francisco’s Chinatown history. Its looming closure serves as a poignant reminder of the fragility of legacy businesses and the importance of proactive planning. For Exit Planning advisors, this is a moment to reflect on the transformative power of strategic foresight. With the right tools and guidance, even the most daunting transitions can lead to opportunities for renewal, growth, and lasting impact.

Business advisors committed to solid exit strategies hold the key to ensuring that stories like Sam Wo’s end not in closure but in continuity. Let this tale inspire exit planners to help their clients preserve their legacies for generations to come.

Front of current location of Sam Wo restaurant in 2015.

Read more about the looming fate of Sam Wo restaurant at The San Francisco Standard >

The Role of Insurance Advisors in Exit Planning

Posted on by Fletcher Brown

Insurance professionals have three primary responsibilities when working with their business-owner clients to complete an Exit Plan.

“I’d like to leave/sell my business. Can you help me?” How you answer this question determines whether you will represent your client and his or her company in the future.

3 Primary Responsibilities of an Insurance Professional

As an insurance professional and member of the owner’s Exit Planning Advisor Team, you have three primary responsibilities when working with your business-owner clients:

  • Inform and educate the owner about the Exit Planning Process.
  • Facilitate the Exit Planning Process by coordinating your activities with those of the owner, and his/her other advisors.
  • Provide services necessary to ensure the owner’s successful transition from the business.

Step One: Setting Exit Objectives

The insurance professional has one primary objective in Step One: Establish income needs for the owner and his or her family during lifetime, and at owner’s death or disability.

Step Two: Determining Value/Price

  1. Determine the value of the business for estate and gifting purposes.
  2. Based on the owner and his or her family’s current income, determine whether an income deficiency exists should the owner die or become disabled now.

Step Three: Preserving, Protecting, and Promoting Value

  1. Educate the owner about key-employee retention/motivation techniques.
  2. Determine the appropriateness of a retirement plan, in particular a defined benefit plan, to provide for the owner’s future income needs post-exit.
  3. Design and fund non-qualified deferred compensation plans for key employees and the owner.
  4. Consider key-person insurance on the owner’s life and the lives of key employees.

Step Four: Converting Business Value to Cash – Sale to Outside Third Party

  1. Introduce the owner to the appropriate transaction advisor (investment banker or business broker).
  2. Determine whether the owner’s financial needs/Exit Objectives can be met by expected net sale proceeds.

Step Five: Transferring the Business to Insiders: Children, Key Employees, or Co-Owners

  1. Review the owner’s financial Exit Objectives, specifically, the impact of using lowest defensible value when transferring the business to insiders considering the owner’s income needs at death. Analyze the need for life insurance to replace lost income if owner dies before the insider transfer is completed.
  2. Provide key-person insurance on the lives of insiders who are acquiring the business.
  3. Design and fund the Buy-Sell Agreement between the existing owner and new (insider) owners.

Step Six: Contingency Planning for the Business

  1. Review existing Buy-Sell for consistency with Exit Plan. Suggest modifications as necessary.
  2. Sole-owners: Explain need for continuity and Stay Bonus Plan.
  3. Co-owners: Discuss the need for business continuity planning.
  4. Coordinate continuity planning with estate planning.

Step Seven: Wealth Preservation Planning

  1. Review the existing estate plan at the outset of the Exit Planning Process to ensure consistency with Exit Objectives and existing resources. Discuss the following with the owner and Advisor Team:
    1. Is ownership under the existing estate plan consistent with the owner’s Exit Planning objectives?
    2. Does the estate plan need to be modified to meet business continuity issues addressed in Step Six?
    3. Does the owner’s family achieve the financial security Exit Objective if the owner dies today?
    4. Review estate tax issues in light of Step Two valuation ranges.
  2. Make modifications to and fund the estate plan as determined above.
  3. Engage the owner in ongoing estate planning activities designed to meet other estate planning objectives, such as transferring wealth now to family members.
  4. In light of realistic business value, fund for the payment of estate taxes.

The Role of Attorneys in the Creation of a Successful Exit Plan

Posted on by Fletcher Brown

See the three primary responsibilities attorneys have as members of an Exit Planning Advisor Team.

Continue reading “The Role of Attorneys in the Creation of a Successful Exit Plan”

The Role of the CPA in the Creation of a Successful Exit Plan

Posted on by Fletcher Brown

As a CPA and member of the owner’s Exit Planning team, you have three primary responsibilities and opportunities.

Continue reading “The Role of the CPA in the Creation of a Successful Exit Plan”

The Role of the Financial Advisor in Successful Exit Planning

Posted on by Fletcher Brown

A financial advisor has three primary responsibilities when working with business-owning clients.

Continue reading “The Role of the Financial Advisor in Successful Exit Planning”

The Role of the Exit Planning Advisor

Posted on by Fletcher Brown

See what roles Exit Planning Advisors play for business owners.

Business advisors meeting around a table

We’ve updated this article to reflect our most recent survey, The BEI 2016 Business Owner Survey.

According to our most recent business owner survey, Exit Planning Advisors ask the questions that few other advisors ask business owners.

Since all boomer business owners are over the age of 50 (and most over 55), we weren’t surprised that 79% of all owners (not just boomers) who took part in our 2016 Business Owner Survey told us that they want to leave their business within 10 years.  Based on this, it would be natural to assume that advisors are talking to their owner-clients—especially their boomer clients–about their exit intentions and planning.

To test that assumption, we also asked business owners if they had had even a single conversation with an advisor about their plans to stay or exit their business. We wondered which professional advisor was doing the best job, so we asked them to tell us which professional they had talked to about their plans to exit. As you’ll see below, “the best job” is relative.

What Business Owners Told Us

Our Survey asked: To date, I’ve had at least one conversation about my plans to stay/exit my business with my:

  • Insurance advisor
  • Financial advisor
  • CPA
  • Business attorney

The owners’ responses were as follows, and owners could answer with more than one response:

  1. Insurance advisor – 9%
  2. Financial advisor – 30%
  3. Estate planning Attorney – 15%
  4. Business attorney  – 25%
  5. CPA  – 41%

Given the wording of the question, the percentage of advisors initiating that conversation is even lower than these percentages, since either an advisor or owner may have initiated the conversation.

This conversation rate may seem low, but our Advisors tell us that they are continually surprised by how seldom they talk to a business owner who has ever talked to another advisor about their plans to exit—including the owner’s current advisors.

Are you ignoring your most important clients’ most important concern?

Based on these results we believe that the most affluent group of business owners in the history of the world is being ignored at the exact time that they most need help.

We don’t know why advisors don’t talk to their clients or prospects about their exits. And the reason they don’t isn’t really important.

What is important is that their silence presents an amazing opportunity (for the next 15+ years) to grow your practice through helping the most affluent generation of owners in the history of the world exit their businesses on their terms and conditions. We find that owners are increasingly interested in learning more about Exit Planning. They want to know what to do and who can help them. How do we know?  The number of owners requesting information from BEI to plan for their own exits has greatly increased, and average attendance at our business owner seminars and workshops has grown exponentially.

So here is our mini-survey for you:

  1. Do you wish to learn more about what you can do to help owners benefit from their lives’ work?
  2. Do you wish to learn how helping owners can help your practice?

If so, tune in next week as we describe seven questions to ask business owners to initiate a conversation about their plans to stay or leave their businesses.

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