Value building and succession planning

Exit planning is all about timing. There are several actions you can take to maximise the value of your business, facilitate a smooth transaction and ensure its ongoing success.

A business primed for sale can be worth considerably more than one where the owners have neglected to plan ahead.

If you are expecting your business to fund a new business venture, or your retirement, consider that it takes on average more then three years to prepare a business for sale, or to reach a position where your day-to-day involvement can be substantially reduced.

The key issues to achieve include:

  • Clarity of vision for your business
  • Establishing a track record of growth in profitability
  • Building a management team that can succeed without you
  • Establishing robust systems and procedures that build in best practice
  • Freedom from excessive debt

Efficient structuring in advance can potentially reduce the tax burdens on both the seller and the purchaser. Where a succession is intended, the inheritance tax position may also be important. Tax planning can take a long time to put in place, so the sooner a tax adviser is brought in the better.

Work with us to ensure you have a clear idea of where your business needs to be when you exit, where you are currently and what you need to do to bridge that gap.

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Contact us

To discuss value building and succession planning, contact a member of the Business Strategy Group, email strategicplanning@mhllp.co.uk or alternatively send us an enquiry online.