{"id":11782,"date":"2022-07-18T10:58:56","date_gmt":"2022-07-17T22:58:56","guid":{"rendered":"http:\/\/williambuck1.wpenginepowered.com\/nz\/?page_id=11782"},"modified":"2024-11-12T23:54:48","modified_gmt":"2024-11-12T10:54:48","slug":"seven-tips-to-planning-a-successful-exit","status":"publish","type":"page","link":"https:\/\/williambuck.com\/nz\/seven-tips-to-planning-a-successful-exit\/","title":{"rendered":"Seven tips to planning a successful exit"},"content":{"rendered":"

[vc_row][vc_column][vc_column_text]The decision to sell your business can be a difficult and emotional one, particularly when the sale may be the culmination of a lifetime\u2019s work. In an ideal world, the planning process to sell your business should be put in place when setting-up your business. Yet the reality is, many business owners only begin to think about planning the exit of their business when it comes time to sell.<\/p>\n

Ideally, to derive the most value out of your business, planning the exit of your business should take three to five years, which allows enough time for the results of any strategies undertaken to flow through the business<\/p>\n

Exiting a business is a four-stage process:[\/vc_column_text][vc_tta_tabs color=”sky” active_section=”1″][vc_tta_section title=”1. Strategic planning & indicative valuation” tab_id=”1567141291698-44a7aab7-ff5e”][vc_column_text]<\/p>\n

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  1. Establish objectives of the business owners<\/li>\n
  2. Ensure veracity of financial information<\/li>\n
  3. Review business operations to maximise value of the business<\/li>\n
  4. Assess value of the business and establish price range for the business<\/li>\n
  5. Align your business and personal wealth plan<\/li>\n<\/ol>\n

    [\/vc_column_text][\/vc_tta_section][vc_tta_section title=”2. Pre-sale preparation” tab_id=”1567141291722-4fae802b-744e”][vc_column_text]<\/p>\n

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    1. Preparing an information memorandum<\/li>\n
    2. Identify and evaluate potential buyers<\/li>\n
    3. Prepare data room<\/li>\n<\/ol>\n

      [\/vc_column_text][\/vc_tta_section][vc_tta_section title=”3. Approaching buyers & negotiating” tab_id=”1567141343398-f6f1dc05-0527″][vc_column_text]<\/p>\n

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      1. Approach priority qualified potential buyers<\/li>\n
      2. Exchange confidentiality<\/li>\n
      3. Assist potential buyers with their initial review of the business<\/li>\n
      4. Create competitive bidding environment and receive offers<\/li>\n
      5. Negotiate heads of agreement and other agreements<\/li>\n
      6. Manage due diligence Q&A<\/li>\n<\/ol>\n

        [\/vc_column_text][\/vc_tta_section][vc_tta_section title=”4. Deal closure” tab_id=”1567141344107-27b1ca8c-26e4″][vc_column_text]<\/p>\n

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        1. Finalise sale negotiations<\/li>\n
        2. Complete sale including settlement adjustments<\/li>\n
        3. Post-sale matters including finalisation of accounts and working capital adjustments<\/li>\n
        4. Deploy Sellers discretionary earning proceeds as per personal weath plan<\/li>\n<\/ol>\n

          [\/vc_column_text][\/vc_tta_section][\/vc_tta_tabs][vc_column_text]William Buck Corporate Advisory provides complete end-to-end transaction support during the entire sale process using our integrated approach which incorporates; strategic planning; valuation; and specialist taxation and accounting skills.<\/p>\n

          In this article, we discuss one of the most critical and overlooked phases of selling a business \u2013 preparing for exit.[\/vc_column_text][\/vc_column][\/vc_row][vc_row][vc_column][vc_tta_accordion active_section=”1″][vc_tta_section title=”Tip one: Understand your objectives” tab_id=”1562740499932-41024b80-05a4″][vc_column_text]Ideally, your personal objectives and those of the business will be aligned. Thus, understanding your personal objectives should be central to any business plans. Some key factors that need to be considered in determining your best exit strategy are your:<\/p>\n