Exiting your business is a huge milestone, and not just a flick of the switch. Maximising value and preserving the success you built for your business requires substantial preparation through a well thought out, tailored process. We recognise that your business is more than just a ‘9 to 5’ and the decision to step away is a significant moment in both your professional career and personal life. We will support your every step, providing the right advice when it matters most.
When should we start planning an exit?
It is never too early to start planning for exit. It's important to plan for the future, not only so you have a target to work towards, but also so you can structure your business and decisions around that plan. Sometimes an exit isn’t always planned – personal circumstances change, or you might receive an offer too good to refuse.
What do we need to do to prepare the business for sale or investment?
One of the most important steps is to declutter and clean up your accounts. The business' financials will be heavily scrutinised during Due Diligence to having clean accounts with no surprises will streamline the process. You might consider vendor due diligence to identify and mitigate and issues which could deter a potential purchaser or investor.
How do we find the right buyer?
Take the time to understand the buyer's core values and be happy that you want to open a business relationship with them - particularly because many deals will require a period of continued employment to support the transition. The ‘right buyer’ might not always be a third party. Have you considered whether there are members of the team that might be willing to take on the business?
How do we market the business for sale?
An Information Memorandum (effectively a prospectus setting out the background, structure and commercial and financial attributes of the business) is a useful way of summarising the business and the acquisition opportunity it presents. This can be shared - confidentially - with prospective buyers.
What is the business worth?
There are a variety of valuation techniques dependant on your type of business and its corporate structure. Typically, a trading business' value is calculated as a multiple of earnings where the multiple is linked to the level of opportunity or lack of risk within the business and its industry. Ultimately a business is worth what someone is willing to pay. However, being well prepared for a sale and being able to identify the correct purchaser can help maximise the sale price.