Deciding Isn’t Doing: Why Business Owners Need to Act, Not Just Plan

“Five frogs are sitting on a log. Four decide to jump off. How many are left? Five. Because deciding is not the same as doing.”
“Five frogs are sitting on a log. Four decide to jump off. How many are left? Five. Because deciding is not the same as doing.”
Exiting a business is one of the most significant decisions an owner can make, and being prepared is the cornerstone of a successful transition. Without a clear and early plan, business owners risk underselling their hard-earned success. Here are the key steps to ensure your business exit is strategic, rewarding, and smooth.
Following our appointment as partner for exit preparation and planning to the HR Dept, we were delighted to be invited by Albert Keeshan, licensee for Reading, Thames Valley and South Oxfordshire, to co-host a round table on exit planning for several of Albert’s clients.
When it comes to valuing a business, it's not just about the numbers on the balance sheet. EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) is the accepted financial metric that provides the foundation for what your business is worth.
Building your business up to the £5-£10 million revenue mark is a significant milestone and selling is an exciting opportunity. But before you jump into the process, it’s crucial to prepare thoroughly. This step-by-step guide will walk you through the essential stages of business preparation for sale, ensuring a smooth and successful exit.
Most entrepreneurs only sell once in their life, but when it becomes reality, many owners find it harder than they anticipated to let go of a company they’ve started and grown. The inability to detach emotionally can hinder a sale, especially if you’re not willing to give up control of aspects of the business.
Exit planning is crucial for a successful sale and to maximise your returns. Whether you're retiring, pursuing new opportunities, or simply ready to move on, careful planning and exploring the elements that contribute to building the value of your business are essential.
In this exit planning guide, we explore some key considerations to help you navigate towards your exit, and build your confidence to leave your business in somebody else's safe hands.
Exiting a business can be a daunting process, especially if it’s the first or only time you sell your business. Good exit planning can ensure a smooth transition and maximise the value of the sale and manage your tax planning. Adopting a comprehensive due diligence checklist is essential in helping streamline this process and find out where you need to focus your attention to achieve the exit you want. Carrying out a due diligence review is just one of the steps in the exit process and at hgkc we work with you at any point in the exit journey here 5 key areas to get you started as you navigate your way through your business exit.
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.
Our expertise is in getting to the heart of you and your business. We find the right advice when you need it. We add clarity and focus. We help keep you on track, especially when it's tough.
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