Exiting a business
The exit stage is your opportunity to cash in on all your effort and years of hard work by selling to management or another company. If things haven’t gone so well, it could mean winding down and shutting the business. Either way, you’ll need business exit strategy advice from an expert.
Seek business exit strategy advice
Are you ready?
Selling your business can be an emotionally-charged decision. Step away from your feelings to make sure you are personally ready for exit, and then bring in some business exit advisors to assess the company’s operational readiness.
What’s it worth?
The business may have been built on your blood, sweat and tears, but your idea of fair value may not reflect the market’s idea. You should consider not just the number on the board, but also what you’ll get to keep after taxes, professional fees and other organisational costs of exit. It might not actually be worth selling - or it may fuel your next adventure.
Establish your transition plan
Look at your business operations, management and competitive barriers. Assess your processes, ownership structure, legal requirements. If you’re selling, you should work with the buyer to ensure a smooth transition to the new operation. If you’re winding down, there are other factors to consider - what happens to your staff, your infrastructure, your records?
Keep your eye on the ball
If the business starts to flounder before the deal is sealed, it could affect the price. Make sure the potential purchaser knows this is a growing venture as it will help your negotiating position.
Business exits aren’t just for the successful
Cut your losses and run
It’s a tough decision to make, but put aside your emotion for long enough to take an honest look at the state of your business. Trying to save a failing business can literally cost more than it’s worth.
External pressures force your hand
Health, family or partner problems can force an exit. It’s important to have an exit strategy in mind, even if it’s not fully-formed, because you never know what’s around the corner.
From that germ of an idea, to a fast-paced start-up, to a growing and then matured business, and finally to a global outfit. Or, from an idea that sadly failed. If it’s time for something new, then it’s also time for an exit – and Banks Sheridan can help with:
- Exit planning
- Handover strategy
- Tax consolidation
- Debts and liabilities
- Cash flow review
- Company secretarial services
To speak to one of our specialist business advisors, please contact us by clicking here