Selling a business is one of life’s major financial decisions, one that can shape both your legacy and future wealth. With years of experience guiding successful exits, we help transform this complex transition into an opportunity for lasting prosperity.
Selling your business can be an exciting yet stressful time. You’ve spent years building your company, so you want to make sure the sale goes as smoothly as possible – and that you get the best you can for yourself and your stakeholders.
A business exit plan looks at what you want from the business, what happens afterwards and what you want in retirement. Each exit strategy is specific to you and your business and not only is every company different but so are your shareholders’ goals.
Preparation is essential for most aspects of your business and selling it is no exception. Early engagement is crucial, so speaking to your financial adviser from the beginning is an important step.
At Mattioli Woods, we work with you to create a bespoke business exit plan through in-depth fact finding, clear objectives, detailed financial planning and of course, the post-deal financial affairs.
Proper exit planning allows you to have more control over the timing of your exit and helps reduce the tax liabilities on the sale of the business. It ensures a suitable strategy is put in place to help lower the tax burden and increase your after-tax profits.
This ultimately helps you maximise the business value and ensures your retirement goals are financially supported. A well-executed exit plan ensures a smooth transition of ownership, whether that be to a third party or family members, as any potential risks can be highlighted and dealt with in advance.
There are several different business exit strategies you could use. These include merger and acquisition (M&A), selling to a partner or investor, initial public offering (IPO), management and employee buyouts (MBOs and EBOs), family succession, acquihires, liquidation and bankruptcy.
We always recommend you speak to your financial adviser on which is the best option for you and your business.
The most important factor to consider is what you want from the sale of your business. This can have a major impact on which way you decide to take your exit planning. You should also consider the value of your business and any tax implications.
The simple answer is yes. As with everything relating to finances, starting early is crucial. Putting together your business exit strategy early can ensure you know exactly what you, your business and your employees are doing. It’s also good to start early so you can increase the business’s profitability, therefore potentially increasing the sale price.
Yes, there are several different tax reliefs that could potentially be used when exiting a business.
These include:
