Exit Planning: Get Your Ducks in a Row

Know your numbers. How much are you making, how much is the lab making and how much money do you need to retire? “It’s very rare that an owner has enough in savings for him to retire on the spot, so it’s important to nail down that information to set a timeline for an exit plan,” says Larry Weiss, CPA, CEPA®.

Another important number to determine is your lab’s EBITDA (Earnings Before Interest, Tax, Depreciation and Amortization). “As a general rule of thumb, a lab with EBITDA of several hundred thousand dollars or more can sell for four to six times that number,” says Weiss, noting that a tax advisor, accountant and/or wealth planner can be extremely helpful in determining these figures.

Organize your documentation. Gather updated income statements, balance sheets, income tax returns, aging reports and your sales history for at least the past three years.

In addition, you should:

• Be...
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