YOUR BUSINESS SPRING 2019 - 290

often simultaneously, for its owners,"
says Fentress Seagroves, US inbound
advisory leader at professional services
giant PwC. "Early planning allows
time to sufficiently understand the
strengths of your business and to
identify and shore up weaknesses."
James Caan agrees. "The exit
process can be complex and
emotional, but it needs to be detailed,"
he says. "This is not something
you should do quickly. To get the
best results, you need to have
prepared your business for exit."

Ask the right questions

There are plenty of questions to ask
yourself. Who will take the firm on, if
anyone? Will you sell it? What are you
looking for if you do? Do you want to
take as much money as possible out
of the business while you're there, or
make it as profitable as you can for a
sale at the end? Is your intention to
keep as much control as possible or
to create the management structures
that will allow the company to thrive
when you're no longer running it?
Answering these thoughtfully and
decisively will allow you to run the
business today in a way that will
make sense both during your stint in
charge and also on the day you leave.

Weigh all your options

It's not just about success or failure.
Here are the possibilities open to
you when you decide not to take
your business any further.
n Liquidation Perhaps the
easiest option is to close the doors
and walk away. Companies often
hit the headlines when they are
wound up or liquidated owing to
debts, but you can choose voluntary
liquidation as long as you're solvent.
If you want to retire or step down
for other reasons, and you don't
believe the company has value to
others or anyone else is ready to
run it, you can go through a six-step
process to appoint a liquidator.
n Pass it on Many businesses are
passed down family lines, with a son
or daughter taking on a firm when
one of their parents wants to move on.

290

Selling your business
is a popular option
but it requires a lot
of skill and hard
work to get it right
As well as the satisfaction of keeping
something you've worked hard to build
within your family, this option can
sometimes allow you to play an active,
if reduced, role in shaping its future.
n Sale Another option is to sell the
company, either to a competitor, an
investor, a management team or,
ultimately, anyone who stumps up the
cash and meets the legal requirements.
This is a popular option for obvious
reasons because it releases the owner
from any responsibilities and, ideally,
leaves them with a cash sum for their
troubles. However, it requires a lot
of skill and hard work to get right.
"Think of this process as being
like selling a house," says James.
"Would you start bringing potential
buyers around for viewings

Show and sell

Not sure when the time is right to exit your business? Rufus
Bazley from BusinessesForSale.com looks for the tell-tale signs
Common advice is that
you should plan your
exit from day one and
the best time to sell
is during the highest
growth period. This is
good practice but is
vague. You should also
consider how you feel.
If you're finding it
harder to get up in the
morning, are thinking
of alternative business
ideas or have lost
interest, you need to

exit and you should do
so quickly before the
business starts to suffer.
It's said that valuing
a business is more of
an art than a science,
but you can get a ballpark figure. Google
industry multiples for
your sector and multiply
your profit by this.
But so many factors
affect the value of a
business. It's made up
of stock and assets,

which are relatively easy
to appraise, but don't
overlook the importance
of turnover, profitability
and ongoing contracts
too. There are also
intangible elements
that provide value,
such as relationships
and goodwill.
BusinessesForSale.com
is a classified listings site
that connects buyers and
sellers of business and
franchise opportunities
http://www.BusinessesForSale.com http://www.BusinessesForSale.com
YOUR BUSINESS SPRING 2019

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