EXITING YOUR BUSINESS
How much is my business worth? Should I sell up, winddown or retire and when is the best time to leave? Whilst life after your business may seem like a long way off, the earlier you start thinking about it, the better the outcome will be.
how can we help
There are many personal and financial considerations when it comes to exiting a business.
From how much money you need in retirement and reviewing your best exit options, to succession planning, or preparing for a company sale or buy-out.
Over the years, we have helped hundreds of business owners to realise their exit plans and we could help you too.
Planning Your Exit
It may be that you can never imagine a time when you would be prepared to hand over the reigns of your business to another entity, but at some point, we all have to accept that we can’t go on for ever.
Planning for your exit sooner rather than later means you can relax knowing that you have a tax efficient plan in place that will mean you get the maximum benefit out of your years of hard work.
You may also want to sell the entire business or retain partial ownership and receive income from the business’s profits even though you’re no longer involved with the day-to-day operations. Some business owners agree to stay on and help train the new owner during the transition. For more information see our guide to Selling Your Business here.
For small or medium-sized business owners, a successor is often a family member, friend or current employee who wants to take over and run the business.
There are several ways that the right advice can make this process easier and more tax efficient, for instance, you might feel that a Family Investment Company is the way to go. This enables you to plan to hand over control of your business in the future to adult children while gradually reducing exposure to IHT. Find out more about Family Investment Companies.
Understanding the market value is key to any exit or succession plan. At Richardson Swift we have a dedicated business valuations team that have experience in evaluating companies big and small and across a broad range of sectors. Our expert valuers will usually use at least two methods to arrive at a range of values, so you get a truly representative idea of your company's worth.
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SUCCESSION PLANNING
How can the business fund my retirement? How do I value the business? When is the best time to step down? What knowledge do I need to pass on? And what will the impact on the business be when I’m no longer running it? If you’re considering passing the business down to your children, or someone else, we can work with you on these key questions and your business strategy, as well as advising on the best ways to prepare for this important next step.
MAXIMISING VALUE
If you’re planning to sell your business, it’s key to consider how your business will look to a potential buyer and take steps to improve areas that will be scrutinised, such as your people, operations and financials. This will ensure that any future sale generates the best price possible. Whichever way you exit a business, there are also tax implications to consider that may influence your preferred exit route. Our tax team have specialist experience in this area and can advise you on the tax costs of different scenarios.
BESPOKE PLANNING
An owner’s vision for the future of their business is a very personal one and there are options to define your own route entirely with more bespoke planning. Setting up an Employee Benefit Trust (or EBT) where the business is owned by its staff, similar to a John Lewis style model, is a good example of how we’ve helped our clients do this.
A business often represents a lifetime’s work. By taking the time to plan your exit, we can help you to achieve the best outcome.
Debbie Boulton
Mnanaging Director
