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Let’s look at our Checklist for a Business Exit Strategy

• Identify your personal goals
• Decide on your Exit Strategy
• Get Your Business ready
• Prepare a Tax planning strategy

Now, let’s look more closely at what these steps involve. 

Identify your personal goals: 

Starting with, forming an advisory group, with professionals such as your Accountant, financial advisor, legal etc to help identify, develop and ultimately decide your goals.  

Next, what are your post exit income expectations and how will your Business fund these, and can it. Carefully analyse and do the calculations. Explore supplement retirement income sources if needed.

Then, establish/ review your Estate Plan.

Now, prepare your Retirement Plan. Items to include:  

1. Clearly state your Exit objectives 
2. A Schedule for transferring ownership 
3. The roles for family/Management 
4. A Communication plan, strategies for employers and key stakeholders and another for customers and suppliers 
5. Backup, prepare a contingency plan for the unexpected.

Decide on your Exit Strategy: 

Meet with your Advisory group to discuss your Exit Strategy. Some strategies include:

• Pass ownership to family
• Sell to key employee
• Sell to a third party
• Create an Employee Stock Ownership Plan 
• Merge with another company
• Sell assets and liquidate

Getting the Business Ready:

This involves many steps and actions, such as:

• Do a business analysis of operational and financial performance
• Get your Business valued
• Review any buy-sell agreements
• Create a succession plan for family members employed in the Business
• Create a succession plan for key management 
• Compare the Business valuation to your financial goals. If needed, develop a financial strategy to fill the gap
• Have strategies to protect/increase the Company value for the sale
• Due diligence process; prepare for it and address any areas of concern
• Create a Business continuity plan 

Prepare a Tax Planning strategy:

Selling a business will create a Capital Gain Tax Event.  It is important to work with your tax accountant to minimise the tax impact before you consider selling the business.

Blackburn Accounting is experienced and ready to help you.  We are your family Business specialists. We will discuss options with you, explore ways to legally minimise your tax liability.

What are the tax implications for the various sale types, we will examine these with you. 

Have questions, want to know more, you can reach us now - click here