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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