Exit can be seen as quitting, especially if the exit discussed is your business interests.
But actually, business exit planning is an essential part of general business planning. In some respects, it is the most important aspect of business development planning as it shines a light on the timing and value you can expect when you retire.
Without a formal exit strategy, you may rush into a sale or dissolution of your business that undervalues its worth when you decide to hang up your business boots.
Hopefully, when you do retire, it will be from choice. But don’t forget there are numerous factors, ill-health and economic uncertainties for example, that may force you hand, and as we all know, being required to quit is likely to result in your business being disposed of at an undervalue.
Much better to start the planning process now while you still have choices. For example:
- Do you have family members you can coach to takeover?
- Do you have a management team who might be interested in a buyout?
- If you sell to interested third parties, at what value do you set your price tag?
And should you be linking up with an agency to handle the sale for you?
And finally, what are the tax consequences. How much of your likely sales proceeds will you be able to keep?
If you have not yet considered these issues please get in touch so we can consider your options.