The importance of the outcome of business transitions, coupled with having only a single chance to get it right, is what makes business succession so challenging for entrepreneurs. Add to that the transactional complexity of business exits, and it's clear that seeking external counsel for an exit is critically important.

Let's take a look at these three important reasons to hire an exit planning consultant in more detail.

Reason #1: Import of the Outcome

For starters, there's a lot at stake. What will become of the company that may be the life's work of the business owner? How much will they earn from the succession? These are critical questions for business owners looking at succession issues.

Reason #2: An Unfamiliar Business Activity

Moreover, a business owner who faces the challenge of business transition is likely doing something that they may do only once in their long tenure as a business owner. Unlike most business activities, in which the business owner has multiple chances to accomplish a task and can learn from their mistakes, business succession can be a one-shot opportunity.

Reason #3: Complexity of Business Exits

The nuanced details and overall complexity of exiting a business will overwhelm anybody who is new to the experience.

There are simply too many options and choices for business exit planning and execution to be handled by a single individual. There are many types of exits to choose from, and each choice has distinct tax, financing and legal implications. Every situation is unique, and cookie cutter solutions are not applicable.

The net result of this complexity is that the business succession process requires a knowledgeable planner and coordinator, who can adeptly keep things moving forward and ensure that everything is moving in the right direction.