Exit Strategy Intricacies

Planning your exit strategy is a critical phase in the lifecycle of your business. You can take numerous paths, from a structured company closure and selling to another business to implementing a management buyout or transitioning the company into employee ownership. Each exit strategy has its intricacies, and understanding them is key to achieving an optimal outcome for you, your family and your business.

According to a recent study, UK business owners are accelerating their exit strategies due to economic uncertainty[1]. The research shows that 65% of business owners plan to sell, particularly those with enterprises generating £5 million or more in turnover. Of these, 40% intend to exit within the next year.

PERSONAL FINANCIAL CHALLENGES

The political climate is a key factor driving this decision, especially with a General Election looming. Many business owners are apprehensive about potential changes in government and tax regulations, prompting them to speed up their exit plans. Access to long-term capital and rising costs have also been flagged as reasons to sell as the result of post-Brexit trade arrangements and high inflation rates. Personal factors are influencing these decisions too, with 25% of business owners aiming to liquidate their business assets to address personal financial challenges. While many have fast-tracked their exit plans, 36% have postponed them due to economic instability.

MAKE INFORMED DECISIONS
Regarding preferred exit strategies, selling to private equity is the top choice, followed by establishing employee ownership trusts. We provide expert guidance to navigate this complex process. Our team is dedicated to helping you make informed decisions that align with your personal and business objectives. While you continue to concentrate on your daily operations, we work behind the scenes to maximise the value of your business during the sale process, which can often be lengthy. 

Whether you're at the beginning of the exit planning process or already in the negotiation stage, our aim is to secure the best possible outcome for you.

Source data: [1] A nationally representative survey of 504 business owners aged 18+ with turnovers of £5m+ conducted by Censuswide between 28 April 2023 to 9 May 2023.

READY TO DISCUSS YOUR EXIT PLANS?

With us by your side, you can confidently move forward, knowing that your future and the legacy of your business are in capable hands. 

To discuss how we can assist you, please get in touch with us for more information.