Business Exit Strategy

Create a plan:

• When do you plan to sell the business
• What are you selling?  A job, A client list or a business
• Know when and why to sell the business

Remember:  A high risk business will get a lower price.  To get the best deal for your business you need to be prepared.  If your business has a high dependence on staff members (including you) or a high dependence on just 1 – 2 clients then your business will be high risk.

Get Prepared:

• Ensure your cash management is not sloppy
• Ensure the business has clear title to key assets
• Ensure any loans are properly documented
• Ensure there are no lease issues
• Have a Budget and show growth over the last few years
• Avoid high client dependency (eg if 50% of your income comes from just one client you have a high dependency on that client.)
• Ensure there are no lawsuits or disputes, ensure your Intellectual property is protected and that you have shareholders agreements.

You can increase the price you receive for your business by:

• proving stable, sustainable and predictable cashflow
• Excellent profit margins
• stable management and quality workforce
• defined systems and procedures
• repeat clients
• current facilities and equipment
• reliable compliant systems and records
• a realistic and detailed growth plan
• lack of reliance on owners to generate revenue

The above is an example of the business advisory and virtual Chief Financial Officer services that we offer at Plant and Associates.  Give us a call and discuss your circumstances.