Stepping Back: Do You Have An Exit Strategy For Your Business?

Stepping Back: Do You Have An Exit Strategy For Your Business?

Ready to retire, want to cash up, or just need a break? At some point, you will probably want to move on from your business – here’s why you’ll need an exit strategy.

Owning a business can be brilliant, but you might not want to do it forever. Whether you’re ready to retire, want to cash up, or you just need a break, at some point you will probably want to move on from your business. Even before that time comes, you’ll need a plan for stepping back.

Options For Stepping Back

Think about what kind of future you would like with your business. Do you want to step away completely or stay involved?

Exiting a business can take different forms, such as:

  • Selling
  • Closing down
  • Passing down some, or all, of the business to a family member
  • Handing on some responsibilities to other team members while retaining a role
  • No longer working at the business but retaining some ownership

Why Is An Exit Strategy Important?

Stepping away from your business can be a complex process. You don’t want to be rushed or pressured when you start this process. You need to have an exit strategy, also known as a succession plan, so you can step back in the way that best suits you.

Having a plan in place means you can maximise your sale price, and it helps with a smooth transition to the new owner. With time to get yourself organised, you can also support a new owner to borrow, or ‘earn out’, the purchase of your business.

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How To Create a Succession Plan

The closer you are to exiting your business, the more detailed your succession strategy needs to be. Your plan will vary depending on your situation, but it should include written goals, a list of assets with their values, and a timeframe. You should also talk to other people who might be involved, like family members or senior team members.

You’ll also need solid advice – from a firm like Agilis CA who specialise in succession planning.

Speak With Agilis CA When Planning The Succession Of Your Business

If you are thinking about stepping back, Agilis CA can help talk you through the options, calculate the potential value of your business, and get a succession plan in place. 

Agilis have assisted many business owners to identify, protect, maximise, and extract the value contained within their business – and achieve a successful exit.

A succession plan can be complex, so if you want to achieve a successful, valuable, and strategic exit out of your business, contact Agilis CA!

This blog was originally published by BOMA, with minor edits made by Agilis CA for the benefit of our readers. 

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Agilis Chartered Accountants

Agilis Chartered Accountants provides tailored accounting services, offering clients a high level of personalised advice and support - from individual tax to business consultancy. With a commitment to driving success, we provide comprehensive accounting and advice solutions that ensure every stage of your journey is met with the utmost efficiency. From startup through expansion and growth, our services make it easier for you to achieve business objectives – ultimately leading towards greater financial stability.