When you leave your business after years of hard work, you’re more than ready to step away and enjoy retirement. However, by investing a little extra time into your departure you can maximise the value you receive from the business you’ve spent years building.
There are several options when retiring from your business. Leaving yourself time to assess your succession planning options is the best way to maximise value as you transition to retirement.
Exit strategies available to business owners include:
- Finding someone to manage your business,
- Closing and liquidating – ceasing all business operations and liquidising assets,
- Selling to a third party – traditionally the most common practice to realise a business’ value.
Depending on the structure of your business closing and liquidating is unlikely to fully realise its value. A business is typically worth more than the sum of its assets because the assets are being utilised to generate profit. If you are planning to retire or exit from your business the first step is to know your options, whether that be the sale of a business, closing and liquidating, or finding a successor to manage the business on your behalf.
The best exit strategy for maximising value can be very industry-specific, and sensitive to a myriad of factors including legal and regulatory requirements, location, organisational structure, and corporate structure. Navigating the best option can sometimes be the most difficult step, especially when it's simpler to walk away.
Corporate Advisory specialists, such as Nexia, approach succession planning with experience and expertise. With consultation from a trusted advisor, you can expect:
- Advice on which exit strategy is most appropriate for you, and your business.
- Assistance preparing the company for sale, including:
- structuring your business for sale,
- forecasting,
- advice on tax implications,
- cleaning up management accounts,
- and ultimately a business valuation report.
- Assistance selling your business through proactive marketing and creation of an information memorandum for prospective buyers.
Whether you’re looking to retire in one month or 5-10 years it is never too early to seek consultation. Nexia can assist you in both knowing the value of your business and the best way to maximize that value.
