Exit Strategies

You only get one opportunity to exit a business and nothing should be left to chance. Careful planning allows the business owner to remain in control of any process and focuses the business on the most important, value-enhancing strategies prior to an exit.

Issues which must be considered include:

• What is the current value of the business?

• What are the key value drivers?

• What is the nature of the market?
(e.g. number of potential buyers, pricing trends)

• Are there currently any barriers to a successful exit?

• What are the business owners’ aspirations?

 
 
 
Angus Allan
Partner


01325 349 700
 


Our team of corporate finance experts can provide pragmatic advice on all of the above.


 
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Due Diligence

Formulating an exit strategy will help to clarify the most appropriate timing for an exit. However, the exit planning process can sometimes make it clear that certain other objectives should be achieved before selling.

Often, these objectives will centre around the valuation of the business. A gap may exist between the perceived current valuation and the aspirations of the owners. A well developed strategy will identify those steps which must be taken prior to exit to successfully close this gap, for example:


• Profit enhancement measures

• Strengthening of competitive position

• Revealing future growth opportunities

• Demonstrating the continuity of key management and/or expertise in the business

• Balance sheet improvements

• Enhancing the quality and timeliness of financial information

• A full legal review to identify and address any gaps/weaknesses in the affairs of the business