Exit Planning to Make a Success of Succession
For most owners, selling their business represents a once-in-a-lifetime opportunity to realise the value of a lifetime's work.
We can work with you to create an exit strategy to prepare your business for a successful transfer - whether it is through an outright sale, a management buy-out or family succession - and guide you through the process from start to finish and beyond.
We can help you answer:
- Who will buy my business? How do I build a business someone will want?
- How do I maximise sale value?
- How are businesses valued?
- How do I extract the value tax efficiently?
- What funding options and deal structures can be considered?
A Government reportª suggests 100,000 business fail each year due to the lack of a succession plan.
The report identified five 'danger signals':
- Business set up for personal, ‘lifestyle’ goals, not strategic business objectives
- Poor business performance
- Over-reliance on owner’s specific knowledge which cannot be easily passed on to a successor
- lack of a suitable successor manager among employees or the owner’s family
- the absence of any (medium-term) plans for transfer.
And we've noticed a few more:
- An over-reliance on one customer
- Unrealistic price expectation
- Lack of acquirer due diligence
- Shareholder misalignment
- Lack of differentiation
If you see one of more of these in your business then contact us - but don't leave it too late.
ªStone, I., Allinson, G. and Braidford, P., 2004. Passing the Baton–Encouraging Successful Business Transfers: Evidence and key stakeholder opinion. Small Business Service/DTI.