Business Exit Plan – Start Early

Business Exit Plan – Start Early

For many business owners, especially those in their 50s, their major asset for retirement purposes is the potential sale of their enterprise.

Planning for this eventuality needs to start early – there are many things to plan and consider regarding tax and your business and investment structures.

For example there is the identification of a likely buyer. Are there people within the business who will purchase your interest? Will it be an external sale – and if so are the operations and the balance sheet in the best shape to present to a potential buyer.

And then which exit method will be used? Is it the sale of a business out of the existing entity to another entity? Or will it be via the sale of shares, a share buy-back, share capital reduction or via the creation of dividend access shares.

A review of any existing shareholder/partnership agreements is vital as well as whether there is a value or expectation that some of the deal will include an earn out period.

Then there are Capital Gains Tax considerations and access to any potential small business or superannuation concessions.

In this area, some early planning is well worth consideration.

Picture of Agilis Chartered Accountants

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.