Before you exit your business, you want to make sure that you can increase your company’s value as much as possible. This will help you look more attractive to potential buyers and planning your exit will help you achieve the best sale you can hope for.
For some business owners, legacy is everything. They want the companies they have built to survive and their names to be remembered as the creators of these amazing businesses. However, others may not want to sell their company. They either have no desire to keep the business going or they are the business, and it would be impossible for the company to survive without them.
A management buyout is the process for your management team to buy the business from the business owner. It is a smooth transaction and can reassure business owners, employees, and their target audience that the company will be left in capable hands. MBO’s ensure quality service and company standards and values continue. As this is an internal process, owners need to help prepare their businesses and employees before exiting the business.
Business owners often fail to plan their exits and can end up not getting fair value for the business that they have invested their time and money building. Those that do plan need help and often turn to a third party. This help can be either financial advisors, lawyers, or business consultants. We recommend an exit strategy should be prepared 3-5 years in advance to gives you time to identify and address any potential problems, whilst also developing your business to increase value. hgkc is a business consultancy providing practical advice to help businesses overcome their challenges and increase growth. We specialise in innovation, leadership, and exit strategies.
An Employee Ownership Trust is where shareholders of a business sell their shares into a trust on behalf of all the employees. An EOT helps business owners to sell at a fair market price, however, they would need to obtain a professional business valuation.
An EOT has become more popular in recent years and has many benefits that will not only affect the exiting business owner but also the employees and management team.
For a business to run successfully, business owners need to clearly communicate their goals and aspirations with their employees, particularly their management team. This is particularly important when it comes to your exit from the business. However, to truly have a successful exit you need to understand what to say, to whom, and most importantly at what point of your exit. Communicating not only helps your people to prepare for your departure from the company it can help them get ready for what comes next. But when you communicate is just as important as what you say.
When planning your exit from your business, you need to be aware of what options are available to you and choose which is the best option for you. Each exit route has its own different set of advantages and disadvantages and researching your options will help you identify what strategy will best benefit you and your business.
When preparing for a trade sale, you want to ensure that you have the right buyer. It is important when exit planning that you leave your current management team and employees feeling secure and happy with the buyer you’ve lined up. Your team need to feel protected and free to develop and grow under the business’ new owner. To ensure you have found the right buyer for your business, follow these tips to guarantee you get the most value for your company.
There are many possible options a company can choose between when it comes to your exit. A management buyout is when your management team buys your business. It can help create a smooth transaction and can reassure business owners that they are leaving their business in capable hands. There are many advantages and disadvantages to a management buyout, and we are focusing on three pros and three cons of this exit strategy.
When starting the exit planning process, you need to ask your what you want to happen next. You need to set goals that are suitable to you and make sense for the direction your company is going in.
In collaboration with Matt West at Metro Bank, with special guest Jason Milkins from Roxburgh Milkins, we hosted a roundtable looking at how to successfully plan your exit from your business. COVID-19 has had a huge impact on business owners, influencing many to start thinking about their Exit Strategy now. Long standing owners and business leaders are struggling with whether to scale down their business or expand and create a legacy before leaving.
Exiting a business takes time, but it can be a smooth transition or an arduous process depending on how well you’ve planned your exit strategy. How much you get from exiting your business is also greatly determined by the measures you have taken in preparation.
A strategic exit plan is key for long-term sustainability. Planning for the end “allows you to drive value to the business while positioning you to harvest that value at some point in your future,” according to Chris Snider, CEO of research and consultancy firm the Exit Planning Institute.
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