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Key Considerations Before Exiting Your Business

by admin | Jan 23, 2025 | Latest News

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

Why Business Plans Are Essential for Success

by admin | Dec 16, 2024 | Latest News

Are you a new business? You should think about business planning.

Having a business plan is the key to success; it must outline how your business will operate, grow and achieve its goals. Especially if you are seeking finance for a startup, a well-prepared plan is essential to secure loans or investments. Here is a guide for everything you need to know.

Why You Need a Business Plan

A business plan can help you to:

Set clear objectives
Monitor finances and profitability
Identify potential issues and financial risks
Guide future growth and decision-making

A well-structured business plan with careful consideration can help you understand each component of your business. It must remain clear and concise so anyone reading your business plan can do so quickly and easily.

Structuring a Business Plan

Overview

A concise account of the business and its goals – this section is most likely to be read by people unfamiliar with your business.

Description

This requires the inclusion of the business background, objectives and plan for achieving them.

Personnel

Key team members and their skills and expertise to facilitate any weaknesses.

Product / service

What you offer as a business, including your unique selling point, how you stand out to competitors and outlining your pricing policy.

Marketing

Details of target market, competitors and growth potential. Understanding your approach to the market indicates a likely chance of success.

Operations

How you will run the business, including processes, equipment and premises.

Financial forecasts

Projected cash flow, profit, loss and balance sheet.

Financial requirements

Details of how much funding you need and what it will be used for.

The Future

A business plan isn’t just for startups—it should be regularly updated to track performance and adjust strategies. Regular updates to the business plan must be made to focus on objectives and inspire discipline to achieve them.

How We Can Help

At Fiander Tovell, we can help you to create a comprehensive, actionable business plan to guide your success. For more information, consult our free guide.

For assistance or more information, get in touch with us today.

Accounting & Business Advisor Spotlight: Fabrice Legris

by admin | Oct 28, 2024 | Latest News

With more than 35 years of experience in practice, Fabrice Legris is a seasoned expert in the world of accounting and business advisory. As Commercial Client Director at Fiander Tovell, Fabrice brings a wealth of knowledge and a unique blend of industry and practice experience to his role, having spent significant time advising owner-managed businesses across various sectors.

“I trained with PWC in London, and for most of my career, I’ve been working closely with business owners, helping them with their accounting, tax affairs, and overall business strategy,” Fabrice explains. “But my time in industry, particularly in the tourism and aviation sectors as Finance Director for a large conglomerate, really helped me gain a deeper appreciation for the financial, operational, and strategic support that businesses need.”

A Passion for Business Management

Although Fabrice’s academic background is in Chemical Engineering, his passion for numbers and business management led him to pursue a career in accountancy. “I enjoyed the scientific aspect of engineering, but I soon realised that my real passion lay in finance and working with businesses. I wanted to use my skills to help companies grow and succeed,” Fabrice reflects. This drive has led him to work with clients from industries as diverse as healthcare, property investment, professional services, and marine.

The Value of Client Interaction

What Fabrice enjoys most about his work is the tangible difference he can make to his clients’ businesses. “I find it incredibly rewarding to provide guidance that adds value—whether that’s through tax savings, a strategic review, or support during a business sale or purchase. The variety keeps the work interesting, and seeing the positive impact on a business is always gratifying.”

A recent success story that stands out for Fabrice is helping a long-standing client navigate the due diligence process of selling their multi-million-pound business. “It was a complex process, but it was rewarding to see it through and to have the buyer retain me as their advisor because they appreciated my proactive approach.”

Staying Ahead in a Changing Landscape

Like many fields, business advisory and accounting are rapidly evolving, and Fabrice emphasises the importance of staying current. “There’s a growing need for automation and AI in our work, which is reshaping how we operate. While these advancements are crucial, I also see a risk in losing the personal touch, which I believe is still essential when working with clients,” Fabrice notes.

As the industry continues to change, Fabrice remains committed to professional development, staying updated through continuous learning and regular engagement with industry updates and journals. He believes that the future of his field will see increased reliance on technology, but that human interaction and personalised advice will remain crucial.

A Client-Centric Approach

Fabrice’s approach to client service is clear: he prioritises a deep, personal interest in his clients’ business affairs. “What sets my approach apart is my continuous focus on client service. In a world that’s becoming more impersonal, I am keen to make sure my clients get the attention and care they deserve,” he says. His goal is always to exceed client expectations, providing honest, high-quality work that addresses their specific needs, from compliance to growth strategies.

Personal Life and Achievements

Outside the office, Fabrice enjoys spending time with his family and engaging in a variety of sports, with a recent passion for golf. He regularly visits Mauritius, his country of birth, to stay connected with his roots and family.

One of Fabrice’s proudest moments in his career came at the age of 28 when he became a partner in the firm of accountants he worked for after qualifying. “It was a huge milestone for me and really solidified my passion for this career.”

With his breadth of experience and client-first approach, Fabrice Legris continues to be a trusted advisor, making a significant difference to businesses across multiple sectors. If you would like to contact Fabrice with any queries, please email fabricelegris@fiandertovell.co.uk for more information.

Understanding Business Motoring Tax

by admin | Aug 15, 2024 | Latest News

Understanding the tax implications of business motoring is crucial for any business. Whether you’re purchasing vehicles outright, leasing, or managing running costs, knowing how to maximise tax deductions can significantly impact your bottom line.

At Fiander Tovell, one of the many things we specialise in is guiding businesses through the complexities of tax deductions. This week, we want to breakdown the tax aspects of business motoring so you can have a clearer picture.

Methods of Acquisition and Tax Deductions

When it comes to motoring costs, the key to tax relief lies in understanding the distinction between capital costs and ongoing running costs.

Purchase of Vehicles

If you purchase vehicles outright, you need to capitalise the asset and write off the cost over its useful business life through depreciation. The same applies to vehicles financed via hire purchase, with the addition of deducting the finance charge as it arises.

However, the type of vehicle and the date of purchase significantly affect the tax relief position:

Normal Cars vs. Commercial Vehicles:

Commercial Vehicles (vans, lorries, etc.) are eligible for the Annual Investment Allowance (AIA), offering a 100% deduction up to an annual limit. Any excess qualifies for a Writing Down Allowance (WDA).

Cars only benefit from WDA, not AIA.

Capital Allowance Boost for Low-Carbon Transport:

Zero-emission goods vehicles and equipment are eligible for a 100% First Year Allowance (FYA).

Any cars used by the self-employed where there is part non–business use will still be separately allocated to a single asset pool. The annual allowance will initially be based on the CO2 emissions and then the available allowance will be restricted for the private use element.

Leasing Vehicles

When leasing vehicles, it’s important to distinguish between rental agreements (operating leases) and finance leases, as they have different accounting and tax treatments. Operating leases are treated like rent, with payments deductible against profits, although a 15% disallowance applies to cars with CO2 emissions over 50 g/km purchased from April 2021.

Finance leased assets are considered fixed assets, depreciated over their useful business life, but generally do not qualify for capital allowances unless classified as long funding leases. Instead, tax relief is obtained through accounting depreciation and finance charges.

For private use of business vehicles, sole traders and partners can only claim the business portion of any allowances, including capital allowances, lease costs, and running expenses. When vehicles are provided to employees, it results in a taxable benefit for private use, applicable regardless of the business structure. Additionally, a tax charge applies if private fuel is provided, and employers must pay Class 1A National Insurance on these taxable benefits.

How we can help

Business motoring tax can involve some complex tax deductions and costs which require a solid level of understanding. We understand that not every business has the time and resources to navigate these intricacies effectively.

That’s why our experts are on hand to help businesses ensure compliance and optimise tax benefits. If you need assistance or have any questions regarding business motoring taxes, please reach out to our Commercial Client Director, Fabrice Legris, at fabricelegris@fiandertovell.co.uk for more information.

Importance of Financial Planning: Key Considerations

by admin | May 9, 2024 | Latest News

While owning a business can be rewarding, there’s no doubt that it can be a stressful experience. It can feel like you are constantly putting out fires everywhere you go. While there are lots of issues beyond your control, financial planning is an area which, thankfully, can be managed.

However, while financial planning can be handled with less turbulence, it still requires a comprehensive strategy. At Fiander Tovell, we can provide you with all the tips to navigate the intricacies of financial planning to establish an effective plan tailored to your business’s needs.

In this blog, we break down just some of the guidance from our experienced team to steer clear of a financial crisis.

Separating personal and business finances

A common mistake we see is businesses using a single bank account to manage everything. Not only does this cause confusion, but you can also end up in legal trouble. This could leave you (as the owner) personally liable for all your company’s debts and liabilities. We suggest creating a separate bank account and obtaining a distinct credit card solely dedicated to your business. This segregation facilitates streamlined tracking of expenditures, simplifies tax calculations, and ensures the maintenance of transparent financial records. This active management serves as a protective measure for your personal assets against potential business liabilities.

Tracking your money

Now that you have separated your finances, you will have an overview of cashflow. Tracking your money becomes much more manageable, which is essential for understanding where your business stands financially and for making informed decisions.

With Fiander Tovell, we can analyse your cash flow statements to identify trends, patterns, and potential areas for improvement. This analysis provides us with essential data for creating financial plans tailored to your business. Overall, understanding your expected cash inflow and outflow allows you to make decisions surrounding investment, expansion, and other strategic initiatives.

Establish and Review Budgets

Budgeting is a cornerstone of financial planning, enabling you to allocate resources effectively and prioritise spending. Take the time to establish realistic budgets for your business, and regularly review them to track performance against targets. This proactive approach will help you identify areas for improvement and adjust as needed to stay on track.

Manage Accounts Receivable and Payable

Efficient management of accounts receivable and payable is critical for maintaining a healthy cash flow. Implementing strategies to accelerate receivables, such as offering incentives for early payment, and negotiating favourable payment terms with suppliers can help optimise cash flow. Our team can work with you to develop tailored solutions for managing accounts receivable and payable effectively.

Planning for the Future

Successful financial management isn’t just about the present—it’s also about planning for the future. Whether it’s investing in growth opportunities, saving for expansion, or preparing for unforeseen challenges, having a comprehensive financial plan in place is essential. Our experts at Fiander Tovell can assist you in developing a strategic financial plan that aligns with your business goals and sets you up for long-term success.

By implementing our tips for better financial management and planning, you can take better control of your business’s finances. At Fiander Tovell, we’re committed to helping business owners like you achieve their financial goals. Our team is here to support you every step of the way.

If you would like to enquire about our services or would like more information, please contact our Commercial Client Director, Fabrice Legris, at fabrice.legris@fiandertovell.co.uk.

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