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EXIT PLANNING
Adding Value and
Attracting Investment
We work with business owners, to ensure they optimize the
value of what is often their most valuable asset – their
business.
Everyone will eventually leave their business and
mistakes can be very costly. Whether the goal is to sell to
an outside party or transfer to family or employees, there
is only one chance to get it right. We develop Exit Plans
that enable you to leave their business to the successor you
choose, for the price you want, at a time you pick.
Our services are based on a seven step process that
starts with establishing the exit objectives. We then take
you, step by step, to the end goal; the sale of the company
and the preservation of the resultant wealth.
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Third Party Sales |
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According to a recent survey, over 50% of business owners
with company revenues of over $1 million, are currently
considering a business exit. Separate studies have found
that only one in four businesses put up for sale will
actually sell. With this abundance of good companies and the
aging of the baby boomer generation, there will be a surplus
of good businesses in the market place. Only those that plan
their business exit are likely to be successful. We start
by reviewing your exit objectives and building the Exit
Plan. We then develop a 'Value Enhancement Program' focusing
on the creation and enhancement of the company’s value
drivers. When the time comes to sell, we work with tax,
legal and M&A intermediaries to obtain as high a price as
possible, while ensuring that any wealth created is
preserved and protected from a legal, financial and tax
perspective.
We can add considerable value to a business in as little
as six months, but in order to maximize the exit value,
planning should take place three to five years out.
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Sales to Family Members or Key Employees |
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For those transferring or selling the business to employees
or family members, the issues can be extremely complex and
risky.
A lack of planning often results in failed businesses and
a collapse in wealth for all involved. Even those that
manage the business transition successfully, often pay 30 to
100% more in taxes than they need to.
Effective management of the commercial, legal, tax and
financial aspects of the sale, can result in higher returns,
paid off over a shorter period of time, while reducing the
burden on the succeeding employees or family members.
Value can be added in as little as six months, but in
order to optimize the exit process, particularly from a tax
management perspective, a timeframe of five years and up
should be considered.
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Management Buy-Outs |
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The opportunity to acquire a business is an exciting and
appealing proposition for any management team. However many
qualified teams have failed to cater for changes in M&A
market conditions, struck unfavorable deals or taken their
eye of the business during the transition stage. We work
alongside management teams to help negotiate favorable
agreements, find investors and manage the transition phase. |
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Exit Seminars, Briefings and One on One Reviews |
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If you would like to find out more about Exit Planning why
not schedule an appointment or attend one of our Executive
Briefings by
registering here:
 One
on One Review Executive Briefing
At these briefings you will learn how to:
Set
Exit Objectives that meet your professional and
personal goals
Value
your business and convert this value into cash
Position
your business strategically and obtain double the
valuation
Sell
to a third party and maximize the selling price while
minimizing the tax
consequences
When
transferring to a family member or employee, increase
the value
that you receive, while reducing the burden on your
successors
Minimize
tax implications of a sale by between 30% and 100%.
Put
a continuity plan in place if the unexpected happens
to you.
Groom
a successor in a way that protects both yours and
their interests
Many
other tricks of the trade that will help you meet your
exit objectives. |
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