Business Exit Planning
I recently spoke to a Finance Director who has a background in Economics and has operated as a Business Consultant and asked the question “how important is an end goal?”. His response?
“It’s so important in that almost every decision made in the business is made with that goal in mind”
I was both pleased a relieved in his answer, however easily 50% of business owners I speak to, don’t have one/any. Why is that? Do you?
Let’s just take one example for now;
A). Your desire is to build the business and sell it for £500k in 5 years time. More questions to follow from me you won’t be surprised to hear!!
What have other businesses of your kind sold for recently or historically?
How were they valued? Multiplier of pre tax profit?
What impacts on the value?
Would you even come through a tough due diligence process?
Why would anyone buy your business and who might?
Why might succession planning be crucial in this process?
I love this subject and happy to chat through the options with anyone.