Business Exit Strategy – Choosing The Right One

A business exit strategy is a plan for how a business owner will leave their business. This could include selling the business, passing it on to a successor, or dissolving the business.

There are many different exit strategies available, and the best one for you will depend on your individual circumstances and goals.

Common business exit strategies

Some of the most common exit strategies for business owners include:

• Selling the business:
  This is the most common exit strategy. You can sell your business to a third party, a family member, or an employee.
• Passing the business on to a successor: 
  This is a good option if you have a family member or employee who is interested in taking over the business.
• Closing the business: 
  This is an option if you no longer want to be involved in the business, or if the business is no longer viable.

There are also a number of other exit strategies that are less common, such as:

• Going public: 
  This is an option if you want to raise capital by selling shares of your business to the public.
• Merging with or acquiring another business: 
  This is an option if you want to grow your business or expand into new markets.
• Bankruptcy: 
  This is an option if your business is insolvent and cannot pay its debts.

Consideration factors

When choosing an exit strategy, it is important to consider a number of factors, including:

• The value of your business: 
  The value of your business will affect the amount of money you will receive from the sale.
• Your personal goals:
  What are your goals for the exit? Do you want to maximise your profits, maintain control of the business, or help a family member or employee?
• The tax implications: 
  The way you sell your business can have a significant impact on your tax liability.
• The timing of the exit: 
  When do you want to exit the business?

It is also important to get professional advice from an accountant, lawyer, or financial advisor when choosing an exit strategy. They can help you understand the tax implications of your exit and make sure that you are protected legally.

The best exit strategy for you will depend on your individual circumstances and goals. If you are looking to maximise your profits, then selling your business may be the best option.

If you are looking to maintain control of the business, then passing it on to a successor may be the best option. And if you are looking to exit the business quickly, then liquidation or dissolution may be the best option.

It is important to carefully consider all of your options before choosing an exit strategy. By doing so, you can ensure that you choose the best option for you and your business.

Need to speak to someone?

Knowing the right route to exit your business can be a hard decision to make. Our advisers and consultants can help you understand which would be the best route for you.

Get in touch with us today for some free, no-obligation advice. Call us on 0800 975 0380 or email [email protected]