Blackburn Accounting

Would you be surprised to know that when Business owners were asked 'what is your Exit Plan'? many replied, I don’t have one or it drew blank faces.

Are you a Business owner, if asked this question what would your response be?

As a Business owner you might think this is something to think about in the future, longer term, not now. BUT, if you are like most and have a ‘dream’ of retirement an Exit Plan is a way to make that dream a reality, by taking steps to bring it to fruition.

Let's start the conversation with a simple explanation of what Exit Planning is all about!

In simple terms, an Exit Plan is developed as a guide to determine when your Business is ready for you to ‘exit’, that is, to retire, sell or move the Business to someone else.

Your Exit Plan provides Strategies outlining the steps to address all aspects of what is needed for the transition regardless of the reason for departure. A well thought through plan is flexible enough to allow for unforeseen events, contingencies to respond to those circumstances beyond your control.

Ideally, this planning begins in advance, but it is never too early or late to start. An example, 5 years provides sufficient time to prepare.

Exit examples include Succession; Selling; Closing down, Liquidation.

Some common reasons for exiting are:

an offer for the Business that is too hard to refuse;
it’s time to retire;
it’s time to pass on the Business to family or interested parties;
the return on investment is too low so the owner wants to try something else.

Contact Blackburn Accounting to start your Exit Strategy Plan today. Click here: contact us

Tips

Tip 1:

Start Developing an Exit Plan today.

Seek the help of a professional/s to help you with this important task, just as you have with other key matters concerning your Business.

Blackburn Accounting is experienced in this field. We offer a personalised service to put you at ease when preparing these major planning decisions.

Tip 2:

Decide on your Exit Strategy.

There are various ways to exit your Business, so it is important to understand and choose which, what best serves your interests. Planning your exit to maximize your Business’ value will be one of the critical decisions you will have to make in your Business’ life-cycle.

Tip 3:

Work towards your Exit Strategy Goals.

Just as with other key areas of your Business, planning ahead gives the best chance for successful outcomes.

Let’s look at our Checklist for a Business Exit Strategy

Identify your personal goals
Decide on your Exit Strategy
Get Your Business ready
Prepare a Tax planning strategy

Now, let’s look more closely at what these steps involve.

Identify your personal goals:

Starting with, forming an advisory group, with professionals such as your Accountant, financial advisor, legal etc to help identify, develop and ultimately decide your goals.

Next, what are your post exit income expectations and how will your Business fund these, and can it. Carefully analyse and do the calculations. Explore supplement retirement income sources if needed.

Then, establish/ review your Estate Plan.

Now, prepare your Retirement Plan. Items to include: