Strategic Exit Planning
4 out of 5 business owners expect to rely on the sale of their business as part of retirement funding yet only 21% of business actually sell and only 1 in 5 business owners have an exit or succession plan in place.
Why? Often the failure to execute is a result of a failure to plan. By preparing a strategic exit plan, you can identify value to your buyers, focus on who they are and then target to sell to them. Generally we support clients through this process and provide the help they need to successfully sell their business. It is our proactive approach that increases our sales quote along with our focus on presenting businesses that are structured to sell. If you as a business owner are serious about selling then you should work with a team focussed on selling your business.
The majority of the work we do is direct to the buyer in what we term off-market sales. This means you can get on with running your business while we take care of the sale and there is a minimum of disruption and market awareness. For an initial discussion please contact us.
Why Prepare Exit Plans?
Why would you prepare an “Exit, Succession or Business Owner Retirement” Strategic Plan for your business? No matter how much you enjoy working in your business, inevitably there will come a time when you will need to retire or sell your business. A business owner can retire in several ways and for various reasons some of which will not be planned . Each has implications, not only for you as the owner, but for the business and the businesses stakeholders. An Exit & Succession plan will help you to consider a variety of different options before you have make the final decision.
Exit Planning- Business Sale Preparedness
You pick up the phone and someone says they are interested in your business and would like to make an offer – what do you do next? …What is a fair price ? How do you protect the staff ? If you have an exit plan in place, you know how to move ahead.
Exit & Succession Planning
Exit Planning refers to the process of helping the business owner(s) leave or exit the business and ensures that a successful transition of ownership will transpire in a timely, efficient, and effective manner.
The goal in most cases is to maximise the financial returns to the business owner, however in cases of family succession this may be secondary. Continued business success in the succession phase is not guaranteed. By focusing on creating a succession plan many of the issues can be addressed before they arise and the legacy can continue.
Exit Planning-Personal Goals
Understanding your personal goals and having them documented increases your chances of achieving them. You know what you want and you can plan how to attain your goals. This ensures you sell for the right value, that enables you to have the freedom you desire in your retirement or next venture.
Exit Planning – Improving Attractiveness
No one likes an unflattering photo of themselves – and a business is no different. It is one thing to have a set of financial reports ready to show a potential buyer, but do they highlight the best features of your business? Do you have the right systems and processes in place for the business to run without you? If not, then you will be less attractive to your buyers which likely means less valuable too?
What do Buyers look for when buying a business?
Buyers look for low risks and a return on their money. The lower the risk and the higher the perceived return on investment the more attractive the business, and of course the more attractive the business the more buyers are prepared to pay.
- Understanding Exit Planning
- Personal Goals
- Business Goals
- Building Your Wealth
- Improving the Attractiveness of Your Business
- Valuation Methodology
- Marketing & Selling your business
Talk to us today and we will be happy to complete a free no obligation review of your preparedness for sale and provide a report on what steps we can take together to ensure your successful exit plan.