As an entrepreneur, you’ll no doubt consider the best way to benefit from the fruits of your labour at some point in the lifecycle of your business. You’ll probably have an exit strategy in mind or want to develop one.
Planning your exit strategy
Planning a strategy to maximise the assets of your business on sale requires patience and planning. It’s a good idea to start considering the issues a good five years before you plan to sell.
Most small businesses exit by trade sale, though other options include floating your company on a stock exchange such as the Alternative Investment Market (AIM).
Many business owners who decide to sell contact Business Transfer Agents who specialise in buying and selling businesses. They are listed in local telephone directories and online. Some estate agents also deal with the sale and purchase of businesses. You should also consult solicitors, accountants and independent financial advisers before selling your business.
Consultation phase
Smaller firms are usually reliant on a few key members of staff to run the business successfully – but it is important when selling a business that potential buyers see plenty of valuable, tangible assets that stand out whether your key employees remain or not.
As an example, a service-sector business might rely on a few key employees charging for their time and contacts. Your business might be perceived not to be worth very much without you.
In short, if you are planning to sell the company in the foreseeable future, it is beneficial to develop products, services and systems that are not heavily dependent on you as an individual or upon key members of staff.
Exit strategy accountants
Berley small business accountants will work with you to get the timing right for your business exit. We can help you determine:
- When’s a good time to sell your business
- What makes your business attractive to potential buyers
- What the tax implications of selling your business are
- How an exit can benefit you
- What handover strategy you need
Once you’ve decided it’s time to sell, we can assist with that process too. As London chartered accountants, we work with a variety of businesses in different stages of growth and we have the experience you need to ensure the best outcome when you’re selling your business. And, if you already have a new venture in mind, we can give you advice on the best way to get it started.
Do contact us if you would like further help or advice on planning your exit strategy. We’ll be happy to arrange a free no-obligation meeting with you to discuss your plans in detail.
Call us on 020 7636 9094 or contact us via our online form and we’ll get back to you as soon as possible.
