If you are expecting your business to fund your retirement, you need to consider that it takes on average more than three years to prepare a business for sale, or to reach a position where your day-to-day involvement can be substantially reduced.
Exit planning is all about timing. There are several actions you can take to maximise the value of your business, facilitate a smooth transition and ensure its ongoing success, whether you are cashing in or planning your succession.
As you start to think about exit planning, it is important to have a strategy in place that defines your eventual goals and enables you to get the best out of your business. It is also critical that the business is structured in a way that supports your aims and is as tax efficient as possible.
Grooming the management team is essential to make sure that no critical function is reliant on the expertise of only a few key people. Recruitment and appropriate rewards are important when attracting and retaining strong management but cannot be put in place overnight.
Consider reinvesting profits to ensure the business can be presented as an efficient and well maintained entity, without any need for urgent capital spending. You also need to ensure you have adequate systems, such as structured marketing and sales functions, since client retention is a key component of the value of the business.
We can guide you in developing clear objectives in the run up to your exit, building on your businesses strengths and overcoming any weaknesses. From the outset, it's essential to focus on key performance indicators and unique selling points. We help you to do this by probing how your business works so you can develop opportunities and minimise threats.
MacIntyre Hudson has the ability to put together a team of experienced professionals in corporate finance, tax, business advisory and financial services, who will be focused on your needs and expectations.