Exit / Succession Planning

When you first set out in business, whether through start up or purchase, it is unusual to be clear on your preferred plan for exit, though of course not unheard of. It is usually over time that the thought of exit occurs and the route becomes clear.

We can help with this process and facilitate the discussions necessary for all parties to come to a shared and equitable conclusion!

There are many options for exit, including sale, transition to a younger generation of your family or perhaps even to closure, each of which has a unique set of considerations which can range from training and development, to the gradual 'easing out' of the older generation, which can be extremely sensitive for all concerned.

If the decision is to go for sale, there can be a period of time required before going to the market to place the business in the most appealing situation in terms of sale proceeds, which does not necessarily mean it will be generating the most cash. There are many other factors that can affect the final sale value.

Where there is no obvious successors, it can be an interesting process to consider who within the business could take over, and look at the enhancements in terms of skill sets and training that may be needed for them to do so. This route can often be the most beneficial way and cause the least upheaval within the business; this is what we did and it worked brilliantly both for John Rickaby, who retired, and for us as the new owners as there was a smooth transition resulting in very little change for the existing client base.

It may be that a decision is taken to maintain a balance between more than one option, and slowly identify which is the preferred route; we can help maintain this balance whilst a potential successor or exit route is identified and a decision as to the preferred option crystallizes. This can take time, and to date we have helped a number of long standing clients through this process, and continue to do so for others.

If you are unsure of your preferred exit route and would like to discuss how the various options may affect your plans for the future, please contact us for an initial discussion.