Blog

Time to take a step back & look up?

Paul Whitney

Managing Director
14/12/2020

It’s a fact of life that all of us will eventually have to exit our business one day, either in a planned way…or not. This year, Covid 19 made it even more apparent, introducing a huge amount of uncertainty and change into many people’s lives and businesses.

Establishing a structured exit plan, well before you ever need one, should be on the New Year’s Resolutions list for all business owners. It will not only make your business easier to sell when you choose or need to, it will also make it more valuable, successful and enjoyable to run in the meantime.

It’s been a challenging year for many businesses and a lot of people will have been focused on the immediate priorities in their day-to-day. New Year is traditionally the time when we reflect and ask themselves the bigger questions – why am I doing this? What are we building for? Ask yourself, are you directing your efforts at your most important and potentially valuable aim – your exit from the business?

Nobody would choose to leave their business in an unplanned way, which can be immensely stressful particularly if you or your loved ones are also coming to terms with financial difficulties, ill-health or even bereavement. Establishing a structured exit plan for your business, well before you ever need one, should be on the New Year’s Resolutions list for all business owners.

Making a seamless, graceful and more importantly profitable exit is no easy thing. That’s why we focus on improving key processes and systems, helping your business become independent rather than relying on the existing board, owners or founders. Get these right and you’ll be an incredibly attractive proposition to potential buyers. It will also make your business more successful, resilient and easier to run.

Would you rather receive 2.93 or 4.49 times pre-tax profits when you sell?

Research of 14,000 businesses who had received an offer to buy their company shows surprising results!

The average sales offer received among all of the businesses surveyed was 3.7 times pre-tax profit. However, there were some startling differences:

  • Businesses where the owners were remote from the sales process received on average higher offers of 4.49 times pre-tax profit
  • Businesses where the owners were responsible for sales received lower offers of just 2.93 times pre-tax profit.

Clearly this demonstrates that in order to be more attractive to potential purchasers, the business needs to operate day-to-day independent of the owner as much as possible. An easy thing to say you may think! But if you’re not in this position at the moment, we here to support you.

How Hallidays can help

Building a process dependent business means embracing change and continuous improvement. Our team are here to inspire you with ideas and strategies for improving systems and empowering your team over the coming months and years to maximise the value of your business.

We have a tried and tested approach to increase the value of your business and make it more saleable. Please contact us to learn more or you may like to complete our short survey Maximise the value of your business and our team will contact you to discuss how we can support you.

Our wealth management advisers are also here to support you with expert advice on pensions, estate planning and investments helping you to financially prepare for your future.

When shall we meet?

Pick a date and time that suits you - and leave your details - to schedule your free online personal advisory meeting with one of our business advisors. You’ll receive a confirmation of the appointment via email. We’re looking forward to meeting you.

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