A Step-by-Step Guide To A Smooth Business Exit
If you’re an SME business owner considering selling your business in the future, it’s never too early to start thinking about the exit process. To help you navigate the exit process smoothly, here are seven key factors to keep in mind:
> Plan for life after the exit. Entrepreneurs never truly retire, but it’s important to have a clear plan for the next chapter of your life. Whether it’s another venture, a new challenge, or a non-exec role, having a plan in place will help you feel more confident about the future.
> Timing is everything. A successful exit takes time to plan and execute, so don’t leave it too late to start the process.
> Detach emotionally. It’s important to separate your business identity from your personal identity for rational decision-making during the exit process.
> Tax efficiency. To maximize your tax efficiency, seek professional advice and plan ahead, sometimes several years before the exit.
> Get the right support. Outside expertise can help you optimize the saleability of your business and increase its valuation. Consider working with a trusted advisor rather than a business broker.
> Communicate effectively. Handle communication carefully and plan ahead to avoid negative consequences such as loss of talent, customers, or suppliers.
> Ensure a smooth transition. Plan for a smooth transition by figuring out the kind of succession plan you want and aligning it with the business you’ve built. Give yourself enough time to have input into your legacy and choose a buyer or ownership structure that aligns with your values.
