Want To Sell Your Company? What is Your Exit Strategy?

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Whether you want to sell your business in 6 months, one year or never, it is important to have an exit strategy in place. Exit strategy is basically a detailed plan for leaving your company. Every business owner should have one. It is advised to have two solid strategies in place. First one can be used to smoothly exit from your business. The second can be used in emergencies that could come about due to partnership problems or poor health. Here is how you can create a solid exit strategy.

Exit Policy and Procedure Manual
First of all, you should develop an exit policy and procedure manual. For developing these two things, you need to write down all your thoughts on how to exit your business when the time comes. You’ll have to answer some important questions in order to create a basic plan and procedures. Let’s have a quick look at some of these questions:

Why You Want to Exit?
First of all, you should outline the circumstances under which a merger or sell might occur. Your plan should start with this. Most business owners want to exit because of financial difficulties or other economic pressure. It is important to state other circumstances in your plan. Some common reasons why a sale or merger might occur other than economic pressure or financial difficulties include retirement, emergency situation, competition, or perhaps you might want to grow your company through a merger. No matter what the circumstances, it is vital to have an exit procedure even if you don’t have any reason.

Have You Talked with Your Partners or Shareholders?
You should carefully review any existing agreements that you have signed with other partners or shareholders. In simpler words, make sure you speak to your shareholders or partners about having an exit strategy. If you have shareholders or partners, you should detailed buy-sell agreement in place. If you haven’t worked on it before, make sure you do it. This is because any subsequent sell or merging of your company will most likely be for your entire business. That’s why you should get everyone involved in creating an exit strategy and for more please visit: Turner Butler Business For Sale Uk.

Who Will Handle What?
Once you’ve put all agreements in place, the next you’ll need to consider which of your shareholders, partners or key managers will play pivotal role in exit strategy. Also, you should determine who will handle what. For example, for legal aspects of your exit strategy, you will need the services of a legal adviser. Likewise, for financial aspects, you will need the services of a financial officer.

Who Will Represent Your Company in Negotiations?
A key manager, an experienced broker or company owner should represent the company in negotiations. These individuals are also accountable for the execution of exit procedures that are part of your exit plan.

How to Value Your Company?
One of the most important things is determining the actual value of your company. Bear in mind that an appraisal done today will not reflect the ‘actual’ value of your business in the future. But, how your company will be valued for sale should be clearly outlined in your exit strategy.

Want To Sell Your Company? What is Your Exit Strategy?
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