Top tips for a successful business exit

Do you want the best roadmap to a successful business exit? Here are key issues to bear in mind from Head of Corporate and Commercial, Chris Wilks.

Top tips for a successful business exit

Do you want the best roadmap to a successful business exit? Here are key issues to bear in mind.


Plan ahead

Get into the ‘exit mindset’ as soon as possible, possibly as early as the start of your venture. Build your exit strategy into your business plan, with a clear yet realistic objective of what you want to achieve.

Know the value

Be clear about where its business value lies. Is it your products and customers, or intellectual property such as your brands and patents? The price of your business relies on this ‘value story’.

It’s not just about the figures

It can be very easy to get caught up in your ‘baby’, but remember that you need to maintain impartiality. Your business is a commodity that will be developed and sold. Financials are important, but bear in mind that buyers are also interested in great ideas executed by the right team.

Keep a balanced perspective

It can also be easy to focus too much on operational details and miss crucial broad-picture aspects such as how robust your business is. However, it goes without saying that you shouldn’t neglect the day-to-day operations. Find a balance between the two perspectives.

Get great advice

Find the best advisors for your business plan. The strength of this advice can help to raise the sale price.

Be tax wise

Tax should be viewed as a business cost that can be reduced, so take advice on how to structure deals in the most tax-efficient way possible to minimise your liability. And remember when you come to sell, whilst the price is important, it’s the amount in your pocket after that’s crucial.

Keep records

Bear in mind that maintaining a strong paper trail will simplify the due diligence and the disclosure processes, and could have a positive impact on the price.

Communicate

A key component of the value story should be the team running the business, so make sure you keep everyone in the loop. If your key talent gets disheartened and leaves, this could be disastrous.

Be patient

Most deals experience a few upsets along the way, but this doesn’t necessarily mean they will fail. Positivity and cooperation should see you through.

What next?

Spare a thought for what you want to do after your exit. There may be scope to build something into the final deal that can help you.

Chris Wilks is Head of SA Law's Corporate and Commercial department

CONTACT CHRIS

If you would like more information or advice relating to this article or a Corporate law matter, please do not hesitate to contact Chris Wilks on 02071 835683 or 01727 798083. 

© SA LAW 2018

Every care is taken in the preparation of our articles. However, no responsibility can be accepted to any person who acts on the basis of information contained in them alone. You are recommended to obtain specific advice in respect of individual cases.