Why having an exit plan is important:
Is your business your pension? Do you want to step back/retire at some point? Are the fruits of your labour going to have to support you through your retirement?
Planning your business exit strategy is vitally important. Whether you want to pass it on to your children, sell it and take the money, or let your management buy you out.
It is never too soon to begin thinking about Exit; you need to know what your goal is ahead of time so you can set the business up to get the most value out of it. At least 3 years financial accounts are needed, that are independent of the owners hands on operational involvement.
What do we find?
If your business is dependent on you, it probably isn’t saleable. Too many business owners think about this too late in the life of their business because it takes time to develop a business to the point where it is worth something to someone else. As a result they can’t or won’t get the value out of it that they want.
Few business owners truly understand how to get the value out of their business; often their accountant doesn’t either!
How can we help?
Pro-actions have a whole host of advisers who have first-hand experience of “finishing” businesses and know how to get value from a Business Exit. We also know that this process ideally needs to start as early as possible in the life of the business, the most successful business sales usually come when it was the starting intention to sell the business.
In or last article, “Measuring What’s Important” we discussed key performance indicators or KPIs. There are lagging KPIs such as financial measures that tell you what just happened and leading KPIs that indicate what your financials are likely to look like.Read More
Following on from our previous blog in this series, “The Most Important Thing”, the next step is to translate your goals into action. For this, setting your targets and measuring your performance against them is vital to making them happen.Read More
What do you want to achieve in your business? Every owner manager had their reasons for why they started out on that journey – what are yours? And more importantly, are they still valid, are you on track, or are your hopes and desires being frustrated?Read More