Planning your exit strategy
02 Sep 2021
While few people who are starting a business will naturally plan for its end, it is nevertheless essential to consider how you will exit your business when the time comes. No one can work forever and there will come a time when you want to pass on, sell or wind up your business, hopefully to be able to enjoy the fruits of your labour.
To achieve the best possible outcome, it is advisable to plan your exit strategy at least a couple of years in advance. Some people find it useful to set a planned retirement date and use this as a deadline to work towards. Planning considerations will include:
- whether you wish to retain any on-going involvement, for example in a consultancy or advisory role
- whether you need to groom a successor
- whether you wish to pass on the business to family members
- whether you wish to withdraw capital from the business and how it will be funded
- whether you wish to sell any shares
- how ownership of the business will be shared in the future
- how transfers of shares or assets can be arranged in a tax-efficient manner
- if selling the business, whether you are selling shares or assets
- how the best price can be obtained; and
- how the consideration should be structured.
It is essential that professional advice is obtained well in advance to achieve the best possible result.
We can help you to put together a comprehensive exit plan, which will minimise your tax liabilities, maximise your financial gains, and help to ensure a smooth transition of ownership. From creating a succession plan, to setting a price, choosing the best time to sell, and making the sale, our expert advisers can guide you through the process.