Wealthyist

The podcast "Wealthyist," hosted by Brandon Lehman, Director of Annex Private Client, addresses the common question posed at mergers and acquisitions conferences: "How do I even get started?" with regard to transitioning out of a business while ensuring a prosperous life post-exit. Lehman explores various exit strategies beyond the humorous option of death, such as selling to the next generation, employees, an outside party, a competitor, or pursuing a private equity route. He emphasizes the importance of starting succession planning early—even if the business is only a few years old—to build value independent of the owner’s direct involvement, which enhances its marketability.

Lehman highlights that many next-generation family members are uninterested in taking over, prompting owners to consider alternatives like competitors, business brokers, or employee stock option plans (ESOPs). He stresses the necessity of assembling a team of expert advisors—attorneys, CPAs, and wealth management firms—to navigate the legal, financial, and personal aspects of the transition. While hiring such a team involves upfront costs, Lehman argues it’s an investment that pays off by maximizing the business’s sale value and ensuring a smooth exit.

The podcast also delves into personal financial planning, urging owners to assess their true lifestyle expenses (including "owner’s privilege" perks like gas or dinners often covered by the business) to determine the sale price needed to sustain their desired post-exit lifestyle. Lehman touches on additional considerations like philanthropy, tax implications, and the looming changes in estate tax laws set to expire in December 2025, which could halve current exemptions and necessitate proactive planning.

 Succession planning, he notes, hinges on building a reliable team—whether family or outsiders—to preserve the business’s legacy and value. Lehman encourages owners to leverage existing trusted advisors, peer groups, or industry contacts to kickstart the process. He advises beginning at least five years in advance to allow time for preparation, underscoring that the opportunity to sell could arise unexpectedly. The episode concludes with a call to action: start planning immediately with the right advisors to ensure decades of hard work pay off.