Exit planning for established businesses2024-04-26T12:02:35+01:00

Exit Planning

Whether you’re considering an exit in the near future or just beginning to explore your options, putting a plan in place is crucial.

Business exit planning:

Are you a successful business owner who is considering the next steps for your company? Whether you’re contemplating retirement, a change in direction, or simply want to ensure the best possible future for your business, exit planning is a crucial step in the process. At The Smart Accountants we specialise in providing comprehensive exit planning services to established businesses. Our team of experienced accountants understands the intricacies of exit planning and is here to guide you through every step of the journey.

Why Exit Planning Matters:

Exit planning is a strategic process designed to maximise the value of your business while minimising taxes and ensuring a smooth transition of ownership. Whether you plan to sell your business, pass it down to family members, considering a management buyout or even transition to an employee ownership trust, a well-thought-out exit plan is essential.

How we support established businesses:

At The Smart Accountants we offer a range of services tailored to meet the unique needs of established businesses looking for help with exit planning:

Valuation Services:

Determining the true value of your business is an important step in developing a successful exit strategy. Our experts will analyse your financial statements, assets, and market conditions to provide you with an accurate valuation.

Tax Planning:

Minimising tax liabilities is a key component of exit planning. Our tax professionals will work closely with you to identify tax-saving opportunities.

Financial Analysis:

We conduct a comprehensive financial analysis to identify areas of improvement within your business. This analysis can help increase the value of your company and make it more attractive to potential buyers or successors.

Succession Planning:

Whether you plan to pass your business on to family members, key employees, or a third party, we can help you develop a succession plan that ensures a seamless transition of ownership.

Exit Strategy Development:

Together, we will craft a personalised exit strategy that aligns with your financial goals and timelines. We’ll consider various options, including selling the business, merging, or even liquidation if necessary.

Due Diligence Support:

If you decide to sell your business, our team can assist with the due diligence process, ensuring all financial records and legal documents are in order for a smooth transaction.

Why Choose Us?

  • Experience: Our team of seasoned accountants and financial advisors has a proven track record of helping businesses successfully navigate the exit planning process.
  • Tailored Solutions: We support a wide range of businesses and have specialist experts in various sectors including Recruitment, Technology, Retail, Construction and Agriculture. We understand that every business is unique. Our approach is highly personalised, taking into account your specific goals and circumstances.
  • Comprehensive Services: From initial valuation to post-exit support, we offer a complete suite of services under one roof, ensuring a seamless transition.
  • Confidentiality: We recognise the sensitivity of exit planning, and we prioritise confidentiality throughout the process.

How we can support you:

Don’t leave the future of your business to chance. Whether you’re considering an exit in the near future or just beginning to explore your options, The Smart Accountants is here to provide the expertise and support you need. Contact us today to schedule a consultation, and let’s start planning for your business’s successful exit strategy.

Remember, a well-executed exit plan not only secures your financial future but also ensures the legacy of your business lives on.

Exit Planning FAQ’s

When business owners are looking to exit their businesses, they often have many questions and concerns. Here are some frequently asked questions (FAQs) that business owners commonly have during the exit planning process.

These FAQs can serve as a starting point for business owners looking to exit their businesses. However, each situation is unique, so it’s essential to consult with experienced professionals who can provide personalised guidance based on your specific circumstances and goals.

Exit planning is a strategic process for transitioning out of a business. It’s essential because it helps maximise the value of your business, minimise taxes, and ensure a smooth transition to new ownership.

It’s never too early to start exit planning. Ideally, you should begin the process several years before you intend to exit to ensure you have time to optimise your business’s value.

Exit options may include selling your business to a third party, management buy-out (MBOs) or Employee Ownership Trusts (EOT), passing it on to family members, merging with another company, or even liquidation. The best option depends on your goals and circumstances.

Business valuation involves assessing various factors, including financial statements, market conditions, and industry standards. An experienced valuation expert can help you determine an accurate value. For businesses within the recruitment industry looking to value their business, try this Recruitment Business Valuation Calculator.

Tax implications vary based on your chosen exit strategy. Working with tax professionals can help you minimise tax liabilities through strategies like capital gains tax planning and estate planning.

Enhancing the attractiveness of your business may involve improving financial performance, creating a comprehensive business plan, strengthening client relationships, building a positive business culture and implementing effective management and operational systems.

Succession planning involves identifying and preparing the next generation of leaders within your company. It’s crucial for a smooth transition of ownership, whether to family members or key employees.

Maintaining confidentiality is essential to protect your business’s value and reputation. Work with advisors who prioritise discretion and use non-disclosure agreements when necessary.

The exit planning process typically includes developing an exit strategy, business valuation, tax planning, financial analysis, due diligence (if selling the business), and post-exit planning.

After exiting, you may need to manage your newfound wealth, invest wisely, and create a financial plan to ensure your financial security for the future. We recommend consulting with The Smart Accountants specialist private client team, consisting of tax experts and financial advisors.

Effective communication is key. Develop a transition plan that includes employee training, customer notifications, and clear communication with all stakeholders.

Select advisors who specialise in exit planning, have a proven track record, and understand your industry and unique circumstances. It’s crucial to build a trusted team.

Common pitfalls include neglecting tax planning, failing to prepare your business for sale, not considering the emotional aspects of exiting, and not seeking professional guidance.

“We’ve always found the team to be responsive, helpful, and proactive in suggesting ways for us to improve our processes. In particular, we have been happy with the move from Sage to Xero, which has made our lives much easier as we grow our business.”

Jack Waley-Cohen, what3words

“One of my previous headaches was always the absence of reliable management information and that often consumed my time unnecessarily. Since working with the team, they have implemented new systems, enhanced existing systems and they provide information on a monthly basis which is accurate and clearly communicated. This allows me to spend time doing what I should be doing.

Combine that with their sector expertise, knowledge and professionalism we would have no hesitation in recommending their services to anyone.”

Sheldon Paule, Cameron Kennedy
total negotiation group

“As our accountants and advisors, the Smart Accountants have always been on hand to support our business but recently they helped the sale of our business to an Employee Ownership Trust. Ultimately this transaction helped us with obtaining a fair price for the business, ensuring long-term succession, and rewarding our employees. The team supported us from the very initial advice and planning stage right through to the implementation and were on hand to offer their expertise throughout.”

Mark Cranstoun, Total Negotiation Group
db sharp & sons limited

“The team have helped us grow and become more professional. Dave has been invaluable in advising us. He has helped our accounts team so much and they now absolutely love Xero!”

David Sharp, D.B. Sharp and Sons Limited

“We recently explored our succession routes with UHY and ultimately, transitioning to an EOT with their assistance was the most attractive route. The key reasons behind this were it allowed us to retain our independence by not selling to a competitor, provide control to our founders over when and how to exit the business, and the ability to combine the EOT with EMI share option schemes. Of course, our staff were also a key reason and the EOT allowed us to reward them without them having to buy shares with their own funds and to increase engagement through this sense of ownership. Throughout the process, UHY were able to offer expert EO advice, which combined with their understanding of our business and partners to take care of the legal side, made the whole implementation process very smooth.”

Coda Music

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The Next Steps

If you would like to speak to us regarding business exit planning, please call us on 0845 606 9632, email us at team@thesmartaccountants.co.uk. Alternatively, please complete the contact form below and a member of our team will be in touch shortly.