Business Exit Planning, Vid trans: 
Hi, Alan Crockert and today is about possibly my favourite subject which is Exit Planning. Of course, in an ideal world, exit planning should be done when you start the business up, but I realise how tough that is for a lot of people. So, how do you maximise the value of your business? Have you asked yourself why you are in business? What does the end result look like? Where is the destination and what do you hope to achieve? Now, whatever the answer is to that, you’ve got a lot of work to do to build up. The price is significant but so is the workload and the direction you’re going in. How do you maximise that multiplier? The due diligence process that you go through when you sell a business is tough, so you need to know how to map the journey out to maximise that big payday or whatever it is that you want to do in the end when you reach your destination. Feel free to call me, happy to meet for an introductory coffee. Thank you. || end
 

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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.