8 Important Steps to Build your Business Exit Strategy

1 Set a Goal Price

Define clearly what you want now for your business and what you will want for it at a future sale date. This is your Goal Price.

2 Make a Plan     

Develop a proper written Plan for how you intend to achieve this goal price.

3 Consult an Expert

Get a qualified person such as a registered Business Broker. Ask him  to prepare an Appraisal Report on your business. This will highlight the strengths and exclusive selling points of your business and its risks. It will also provide you with an Asking Price. Talk to your Accountant about a tax minimisation strategy.

4 Financial Accounts

Ensure your Financial Trading and Profit and Loss Accounts are always up to date.

5 Identify Key Issues

Such as key staff.Who will be taken over by the new owners and who will not. Supply Contracts-do these need to be secured for the future? Lease-does this have attractive renewal options or any assignment restrictions? Customer Spread- Dependency on just a few key customers?

6  Identify Potential Prospects or Buyers

Consider key staff or other shareholders or partners. Consider competitors as prospects as well as business migrants.

7 Define Exit Marketing Plan

This includes all the above as well as setting a final Price and a Date. Engage a specialist registered Business Broker.

8 Cultivate all Prospects

Work with your Broker to create an interest in your business for all prospects. He will introduce competition and assist with negotiations within the time frame. This will get the best price with minimum business disruption in the shortest time. You can get between 50% to 100% MORE more for your business with a proper exit plan. You then leave the business on your terms and are always prepared for offers.

Did you find this useful? Contact me for further information.

Nick Benwell ACA Corporate Business Broker  M 0402 815 005  This email address is being protected from spambots. You need JavaScript enabled to view it.