What you should consider when you want to exit
If you are looking to exit your business or have a future intention to do so, you need a plan to get the business ready for sale. When you sell, you want your business to have as much inherent value as possible – so you get a good price, a great return on your investment and the best possible payout.
So, how do you take yourself ‘out of the business’ as the founder, add the best value and set up an effective and financially beneficial exit strategy?
Adding value to the company
The more attractive the business looks in the market, the better the price you’ll achieve, or the better the yield you’ll see on selling your company shares.
To drive that value:
- Work on the business, not in it – so you’re no longer a fundamental part of the day-to-day operations and can focus on the higher-level strategic elements. We can help you restructure the operations so that your business stands up to a potential buyer when you are no longer in it.
- Invest in adding value – keep profits in the business, reduce your personal drawings and plough that money back into growth and investment.
- Improve your financial health – by taking control of your finances and building a strong balance sheet, positive cashflow and attractive profit forecasts. A buyer will want to see how your business has performed over the last two years.
- Resolve any outstanding issues – Whether it’s an employment issue, maintenance, compliance, health and safety or legal, we can help give your business a health check so that there are no red flags.
- Have documented processes – these describe the processes and tasks in your business so a new owner can hit the ground running.
There are many different ways to sell your business, for example, as a straight trade sale or bringing employees into share ownership with you. The plan will achieve the same outcome but will have different processes/facets and timing.
Talk to us about developing and executing a business exit plan and creating a workable exit strategy, with a clear focus on driving value and delivering a solid return on your investment.
Email us on email@example.com to discuss.