Your firm’s true value lies not only in what you’ve built but in the legacy you preserve long before you exit. Even if retirement feels years away, disciplined exit planning creates durable value and safeguards your financial future.
With the updated Step-Up Legacy Plan™, A/E/LS firm owners can empower trusted employees to succeed as owners while you receive near 100% cash at closing—without seller financing or complex ESOP costs.
This refreshed 2025 guide reveals why early preparation, leveraging current SBA 7(a) financing, and structuring seller-paid deal terms offer practical, legacy-preserving options for owners of firms with $1M to $8M revenue.
Start your succession plan now—preserve your legacy and secure full payment upfront with proven SBA-backed employee buyouts.
Succession planning is often viewed as a distant task, something owners only tackle when retirement is imminent. However, data shows that well over half of U.S. small business owners are aged 55 or older, with many facing unplanned leadership changes. These realities make early exit planning critical—even if you have no immediate plans to leave.
For A/E/LS firms, this means building a strategy over 5 to 7 years that balances legacy preservation, maximizes seller proceeds, and addresses evolving financing landscapes shaped by 2025 SBA lending policies.
The Step-Up Legacy Plan™ stands out as a practical alternative to traditional ESOPs and seller financing, enabling trusted employees familiar with your firm's culture and client relationships to acquire ownership while you receive near 100% cash at closing.
Here’s why proactive exit planning benefits your firm and retirement:
Modern SBA 7(a) loans remain accessible despite stricter 2025 underwriting standards and rising interest rates (10.25%–13.75%), with guarantee fees moderately reduced, preserving deal feasibility.
Owners who delay risk rushed transitions, lower valuations, or forced sales to competitors. Early planning gives you control, time to groom leadership, clean financials, and formalize client contracts—key drivers of valuation multiples typically ranging from 4x to 7x EBITDA in A/E/LS markets today.
Legacy isn’t achieved at the moment of sale—it’s built through years of disciplined planning and leadership development.
Implementing a 5 to 7 year exit roadmap starts with leadership grooming and financial transparency:
This approach mitigates common risks with traditional seller financing and costly ESOP administration—often exceeding $150,000 setup costs and ongoing trustee fees—offering a streamlined, legacy-friendly path tailored for firms $1M–$8M in revenue.
Recent market trends show rising third-party consolidation pressures and private equity interest. By preparing early, sellers can preserve culture and control while delivering significant seller liquidity at closing.
Flexible deal structures now integrate earnouts and minority equity rollovers designed to align interests, but the core seller-paid-at-closing cash strategy remains the bedrock of firm owner security.
Your A/E/LS firm’s future is a legacy worth protecting. Starting your succession plan today—even without immediate exit plans—positions you to preserve the culture you've built and secure full or near-full payment at closing.
The Step-Up Legacy Plan™ and updated SBA financing rules make this achievable with trusted employees as new owners and no seller financing risk.
Contact Allen Business Advisors to start your 5 to 7 year roadmap—secure your legacy and retirement on your terms.
