Exit Planning for my Business

Every Business has a Lifecycle. Prepare and plan your exit early to maximise the value of your business.

exit

Exit Planning

Looking for an exit strategy for your business? Read this guide on how to exit your business the right way. Read this book to find out more.

Succession Planning (or Exit Strategy)

If you are looking for a business for sale, you have come to the right place.

A Succession Plan will help your business transition smoothly to the new owner – and derive more value. A Succession Plan clearly outlines your timeframe, expected sales value and identifies your targeted purchaser.

It is highly recommended to plan your exit early, the sooner the better. That way you have time on your side to maximise the value of your business for sale. Once your timeline is set you can then clearly set measurable targets to reach the full market potential for sale of the business.

STRATEGIC ACQUIRERS PAY MORE FOR BUSINESSES, so think about who would see strategic value in acquiring your business. Is it a competitor? A supplier? A customer? A similar or aligned industry?

It is important to know who your targeted purchaser is, perhaps your family members, an investor, a new working owner or your business team. There are many different strategies and planning solutions depending on your ideal purchaser.. So get planning your exit strategy – right now… You deserve the best outcome that you can get!

Succession and Exit Planning

When?

Most business owners find it hard to believe that they should start thinking about the sale of their business from the first day of acquiring the business – but they should. Even experienced business owners get swept up with the daily operation of their business, and other distractions of everyday living – and forget that one of the most important parts of owning a business is to PLAN THE EXIT IN ADVANCE.

Who?

Put together a team of advisors who can assist to achieve the outcome. The best team is the one which supports your exit strategy.

Why?

The need to have an Exit Strategy is clear… “Failing to plan – is planning to fail”.

Business owners must have the following important plans:

  • A Business Plan
  • A Marketing Plan
  • An Exit Plan

How?

It’s actually pretty simple. Like any journey, we need to plan our final destination at the start of the journey, and then we can set a course, and plan the path to the end.

So, what’s involved? All that is required is to:

  1. Decide when you want to exit, and how much you will want to sell for
  2. Plan on how much profit the business will need to show to sell for the price that you want to achieve
  3. Set a program with targets and KPI (Key Performance Indicators) that 4. need to be achieved to realise the price sought
  4. Plan to prepare the business for sale
  5. Seek advice from credible advisors to keep you accountable and “on-track”
  6. Measure your performance and adjust where necessary to hit targets
  7. Make it happen

 

There are two important benefits that you will gain from having a Succession Plan. These are:

  • You will sell for a higher price
  • You will be motivated by “seeing the light at the end of the tunnel” knowing that all of your work and effort is going to be worth it.

Are you “Sale Ready”?

Click on the link below to find out more about the “Sale Ready” Program.

Every Business Has A “Lifecycle”

The Lifecycle has these parts:

START UP

WEALTH MANAGEMENT

EXIT STRATEGY

OPERATION & IMPROVEMENT

Business Purchase or Start Up

Whether starting a new (or buying an existing business) the following should be considered to ensure you make an educated decision on your going into the business, including:

  • Pro’s and Con’s of the industry
  • Business Planning
  • Marketing strategy
  • Registration and licence requirements
  • Name registrations (including ASIC and Domain’s)
  • Tax Structures and Asset Protection
  • Workplace Health and Safety (WHS)
  • Tax Office Compliance – TFN, ABN, GST, PAYG, FBT
  • Intellectual Property / Trade Marks
  • Insurances – Prof Indemnity, Contents/Building, Public Liab, Workcover, Life, Income protection, Key Man
  • Finance & cash flow requirements
  • Staff and employment requirements and obligations (HR)
  • Fixed and Variable expenses, break even analysis
  • Management and reporting systems
  • Roles and Responsibilities of staff

Speak to a Professional.

Click on the link below to speak to a advisor today to develop an in-depth exit strategy plan.

Important Points That All Business Owners Should Consider…

Is your business able to be sold?

How quickly can it be sold and turned into CASH?

Who would buy your business and why?

What will someone pay for it?

Who would pay the most for it?

Operations and Improvement

Sound business operation requires the right foundations. This means access to accurate numbers and key measurements in a timely manner so you know what is happening in the business at any point in time.

Three main areas for business improvement include:

  • Increasing Gross Profit margins,
  • Reducing overheads,
  • Growing sales.
  • Regular meetings, monitoring and implementation of your strategies enable you to quickly see improvements to your profits.
  • Many businesses fail because of a lack of planning. It is imperative that business owners manage, monitor and measure business performance to know where changes can be made, and to see that business plans are working.

Business owners must be able to regularly review and monitor performance, and make changes quickly.

Wealth Management

What is wealth? To be wealthy simply means you can afford your lifestyle… now, and into the future. Business owners should manage their affairs to grow and build wealth – and look towards reducing input into the business, and ultimately retiring. There are many ways that this can be achieved.

Succession Planning (or exit strategy)

A succession plan will help your business transition smoothly to the new owner – and derive more value. It clearly outlines your timeframe, expected sales value and who is your targeted purchaser.

It is highly recommended to plan your exit early, the sooner the better. That way you have time on your side to maximise the value of your business for sale.

Once your timeline is set you can then clearly set measurable targets to reach your businesses full market potential for sale.

It is important to know who your targeted purchaser is, being your family, an investor, a new working owner or your business team. There are many different strategies and planning solutions depending on your ideal purchaser.. So get planning your exit strategy – right now!

Strategic Acquirers pay more for businesses.

Why you should consult a Benchmark Business Broker.

Buying or Selling a business is a specialised and complex process that requires considerable experience in several areas.

Just as you rely upon a qualified lawyer for legal advice, and your accountant for financial advice – you should seek professional advice and assistance when it comes to buying or selling an asset as important as a business.