Planning Your Exit Strategy: Don’t Wait Until It’s Too Late
Whether you are envisioning a sale, merger, or family succession, planning your exit strategy is not something that you should wait for. In fact, some of the most successful practice transitions start with preparation years in advance.
Practice owners should be ready to take the next step — whether that is stepping back, scaling up for an acquisition, or transitioning ownership. Here is what you need to know.
Why Exit Planning Should Start Early
A practice transition exit is not just a transaction — it’s a process that can take 1 to 5 years or more, depending on your goals and the complexity of your practice. Early planning allows you to:
- Increase Your Practice Valuation
Streamline operations, strengthen contracts, and resolve liabilities to make your practice more attractive to buyers. - Clean Up Legal and Financial Records
Ensure corporate documents, financials, and employee agreements are in order before due diligence. - Plan for Tax Efficiency
Advance planning opens up more opportunities for favorable tax treatment — for both you and your successor. - Protect Confidential Information
Selling a practice involves sharing sensitive data. Legal safeguards must be in place from the start. - Avoid Disruption
A smooth succession plan reduces operational disruption and protects your legacy.
When Should You Involve Legal Counsel?
Many practice owners make the mistake of involving an attorney only after they have identified a buyer — or worse, once a deal is already on the table. By then, critical decisions have already been made, often without the benefit of legal guidance.
Instead, we recommend involving legal counsel at these key stages:
12–36 Months Before Exit
- Begin reviewing corporate structure, governance, and contracts
- Address shareholder or partner agreements
- Clean up ownership records and any phantom equity or incentive plans
At the Start of Exit Strategy Planning
- Identify the right type of exit: sale, merger, or family transfer
- Understand potential legal, tax, and financial implications of each path
Before Any Buyer Conversations Begin
- Draft or review confidentiality agreements (NDAs)
- Prepare a legal due diligence checklist
- Determine which practice documents can be safely shared and when
During the Deal Negotiation Phase
- Ensure favorable terms in the asset purchase agreement
- Protect against post-sale liabilities
- Structure earn-outs, non-competes, or transition support properly
Let’s Start the Conversation Early
Whether you plan to exit in two (2) years or five (5) years, the best time to begin preparing is now. At Oberman Law Firm, we help practice owners on a national basis protect what they have built — and plan for what is next.
Contact us today to schedule a confidential consultation and start your strategic exit plan on solid legal ground.
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