Exit Planning
Link to Case Study

If you're setting up a new business you'll have a clear vision of what you want to achieve from it. To maximise the value you get from the business it's essential to think about how you'll leave it further down the line.

Inspired Business Vision can help you consider all relevant matters in relation to your eventual exit from the business to ultimately maximise your value.

Carefully planning your exit from the business can help you to:

  • mould your business into the ideal shape for your chosen exit option - maximising the value you get from it
  • groom successors if they're coming from within the business - whether they're a family member or part of your management team
  • exit at a time of your choosing, when the business is doing well and the market conditions are advantageous

If you manage an existing business and don't have an exit plan, you should now think about what your preferred exit option might be - and consider whether you could change the way you run your business to help you achieve it.

The way in which you exit can affect:

  • the value you and other shareholders realise from the business
  • whether you receive a cash deal, deferred or staged payments
  • the future success of the business and its products or services
  • whether you retain any involvement in or control of your business
  • your tax liabilities

The key things to consider in your exit planning include:

  • Plan ahead – Do as many things as you can to ensure a smooth exit
  • Be realistic – many owner-managers have an inflated idea of the true value of their business
  • Shareholder objectives – Consider the overall shareholder position if there is more than one, do you have the same goals and ambitions or may an exit involve only certain shareholders leaving the business.
  • Company objectives – Consider how you want the business to develop, and if an exit would help achieve those goals. For example if a major investment is required, do you want to take that risk?
  •  Management objectives – It is common for many owner-managers to remain with the business after a sale, consider whether this would work for you. An earn out is often involved so you being around to ensure this is maximised can be useful
  • Get the basics right – Ensure the business has been prepared for sale to ensure value is maximised
  • Exit routes – Possible exit routes include trade sale, management buy out, family succession, management buy in, or flotation if a substantial business.

Contact Us now to see how we can help you can maximise the value of your business by providing advice on exit planning.


Link to Case Study

 


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