An exit strategy is a roadmap for how you’ll leave (or partially leave) your business while unlocking the value of your shares. There are multiple paths to consider, so the key is to carefully navigate your options to ensure you maximise your return for the hard work you’ve put into building your business and ensure that it continues to thrive under new ownership.
That is why we’ve put together a comprehensive, multi-part guide covering everything you need to know about exit strategies, helping you make the best decisions for you and your business.
Why do you want to exit?
The first question to ask yourself is why you want to sell or exit your business. A bit of self-reflection will help keep you grounded and focused through what can be a challenging process, providing clarity on the type of exit that aligns with your personal goals. Some things to consider include:
- Why do I want to exit?
- Why is now the right time?
- What is driving value in my business?
- What do I want to achieve from my exit?
- Is the business ready?
- Are all my fellow shareholders in agreement?
Why a robust exit strategy is crucial
Having a well-thought-out strategy can not only guide you through the sale, but can also increase the value of your business, ensure a smooth handover, allow you to plan for the future and take away some of the stresses from the process. The earlier you begin planning, the better your chances of maximising value.
The importance of early preparation
It’s important to consider the sale of your business well before you plan to complete a deal. Often, selling a business can take more than six months, and in some cases, it may take years. Preparing your business for sale may also take considerable time, so starting early is essential.
Building your advisory team
One of the most crucial steps in preparing for a successful exit is assembling a strong team of advisors. This typically includes an accountant with tax and deal advisory expertise, a corporate lawyer and possibly a business coach. Take the time to seek recommendations and choose advisors that have experience and an ability to work with other advisors.
Their experience really does count when selling a business as it helps to have people working with you that have been there, seen it and done it many times before. Be picky, choose people to work with that will challenge you, and that you trust and feel that you can work with.
Key takeaways
Before diving into the exit process, take the time to reflect on your goals, assess your business’ readiness for sale, and start building a trusted team of advisors to guide you. A solid exit strategy will not only help you maximise the value of your business but also ensure a smooth transition and secure your future plans with greater confidence.
For more information or guidance on how to navigate your exit strategy, contact Cathy Revis, Head of Deal Advisory, on 02380 332 733 or email cathyrevis@fiandertovell.co.uk