Exiting the business you have worked hard to build can be a difficult transition. It’s therefore essential to have a well-structured plan in place that aligns with your goals, prepares you for challenges ahead, and ultimately, secures your financial future. In our latest blog, corporate finance manager, Ryan Bilsborough, explains the key reflections that business owners should consider when in the process of exiting their business.
Reflect on your goals
As you approach the final stages of your exit, now is the time to reflect on your journey and revisit your initial goals. Before finalising the details, take a moment to ensure everything is in order, for example, are there any unresolved issues that could stop you from achieving your goals? Are your tax affairs in order? Now is the time to ensure your goals are clearly defined and there are no outstanding issues which may need attention before your final exit.
Secure the future of your business
Ensuring your business continues to thrive upon your exit is likely to be a top priority – but is your successor ready to take the helm? Whether it’s a trade buyer, your management team, a private equity firm, or a family member, they will be responsible for steering the business forward. Ask yourself: is your successor prepared to take the role? Are they fully aligned with your vision and the values of your company? Ensuring a smooth transition will be key to the continued success of your business.
Protect your financial future
As you near your exit, protecting the wealth you’ve worked hard to build should be a key focus. Have you considered your personal tax position? Whether it’s inheritance tax exposure or capital gains tax liability, having your financial affairs in order is crucial to secure your financial future. Given the unique nature of every business owner’s financial situation, now is the ideal time to seek advice from tax and financial planning specialists to ensure you’re in a secure and compliant position ahead of your exit.
The impact on your team
Whether you have worked with the same team throughout the entire exit journey, or you have attracted new employees to manage the transition – it’s important to consider the effect your exit will have on your people. Open and honest communication is often the best approach (once your exit is set in stone). Have you had the necessary conversations with your team? Does everyone know where they stand? If not, now could be the time to begin as clear communication can help prevent disruptions and mitigate the risk of losing key employees as you prepare to exit.
The timing of your exit
Have you thought about how quickly you intend to leave the business? If an external buyer is taking over, they may require you to stay on temporarily to ensure a smooth handover. If you want a quick exit, what steps can you take now to make the transition more efficient? If the plan is more gradual, how can you continue to add value whilst you are still around?
Plans for the future
As your exit approaches, are you ready to leave your business behind? For many entrepreneurs, their business has been a source of purpose, and inevitably will have taken up a lot of time! Have you thought about how you’ll spend your time upon exit? Whether it’s exploring new hobbies, travelling, spending time with loved ones, investing in new ventures, or giving back to causes you care about, having a plan for post-exit is essential.
Get in touch
Exiting your business is a significant milestone, and having the right support in place is crucial. Our team of corporate finance specialists are here to guide you every step of the way, collaborating with PM+M’s tax and financial planning experts, to ensure you make informed decisions that align with your long-term goals.
To arrange a no-obligation, confidential chat to discuss your personal circumstances in more detail, contact Ryan by clicking the button below.
