A big part of a business’s exit strategy is the success planning process. Not just when you want to exit your business but – assuming you want the business to carry on – who you want to take it over.
- If you have a family-run business, who do you want to succeed you? Sorting this out well ahead of time can help avoid potential arguments which may damage the business as well as family relationships.
- Do you want to sell to your employees, as a management buy-out, or would you prefer an external buyer? There have been very many successful MBOs, so if this is an option, talk to your management team. They’ll need time to investigate how to proceed, and to draw on expertise, such as lawyers, who will help with the process.
- Do your potential buyers, such as a family members, have enough funding? Can they use a pension as an alternative form of finance? Funding using pensions put into a SSAS – small self-administered scheme – are a very effective tool for providing business funding.
- Do you want to keep a stake in the business or walk away?
Succession planning needs careful consideration and the team at Hartsfield can help you work through the pros and cons of all your options, to come to the best decision for you and your business.