A business exit strategy is a detailed plan which sets out how you intend to leave or transition out of your company.
It clarifies where the business is now, and the necessary steps to increase its appeal to potential buyers in the future.
The strategy also sets out your method of exit — a trade sale, merger, passing it on to family members, employee share ownership, management buy out or buy in. There are a number of options.
The aim is to safeguard the legacy of your business while making sure the exit fulfils your financial and personal goals.
The earlier you plan your exit, the better. When you leave it too late, the exit is more likely to be on the buyer’s terms rather than your own.
Ideally, you’re looking at an exit plan over a period of between 2 and 5 years.
Having said that, it’s never too soon to put a strategy in place. When you start thinking about the end from the beginning, the business becomes a magnet for buyers. Effectively, you’ve created a roadmap for stability — and they’ll always want a business with a well-defined future.
When you’ve been running a business for some time, it’s easy to inadvertently leave gaps when it comes to administrative procedures, legal and financial considerations.
Staff contracts, client agreements, financial records and forecasts, shareholder agreements — getting everything in order is crucial for a seamless transition. It safeguards your assets and protects the future of your staff and suppliers.
What about your own position within the business? Will you want to stay on in a consultancy role after the sale? If not, can the business run without you? If the business cannot operate independently, the buyer will not allow you to walk away from it.
An exit strategy allows you to address all these issues, and more, ahead of time — before they create an obstacle to a successful exit.
Selling your business is one of the most significant decisions you will ever make. It’s also likely to be your largest commercial transition.
To reduce the risk, do seek expert advice before beginning the process. It will give you peace of mind.
As a business consultant, I have crafted a successful business exit strategy for multiple businesses within a variety of industry sectors. I also provide transition coaching to help you work through the decisions, concerns and choices you’re facing.
My name is Paul Dallibar. If you’d like to find out more, call me on 07815 134 432. Or, to book a free no-obligation introductory session, click the button below.
You’ll probably have a few questions so I’ve answered some of them below. If your question isn’t there, please feel free to call me on 07815 134 432. I’d be happy to answer it.
All kinds of business, both large and small. This includes not-for-profits such as charities.
Over the last 20 years, I’ve worked with start-ups and established businesses in a huge variety of sectors — from financial and legal services and to tech, manufacturing and creative industries.
Put simply, no matter the industry sector, I can help you.
Not at all. In fact, it’s an advantage because as an outsider, I can quickly see issues which may not be obvious to an industry expert.
When you’re close to a business, it’s difficult to view it objectively. It’s my job to offer a fresh perspective.
I don’t need to be an expert in your industry. In my experience, no matter the sector, the key issues nearly always revolve around people.
My services cover four key stages in business:
Transition coaching which helps you work through the feelings, concerns and choices you’re facing
Yes, I can deliver consultancy services online.
However, face-to-face consultancy generally works more effectively. When I’m there, seeing you in your working environment, it helps me get a proper feel for the business. It works both ways because we can build a proper relationship.
It’s up to you. Right from the start, we’ll discuss the timescale so that we’re both happy with how long the process will take.
I’m not the sort of business consultant who will stick around for the sake of it. Once the new strategy is bedded in, and everyone is happy with it, that’s my job done.
Always. Each business is different, as are the individuals within it. What works for one business will not necessarily work for another, so my services are bespoke.
Yes. If we’ve introduced new skills and processes, I’ll make sure everyone is fully trained and completely happy with implementing them. If there’s a change of role, I’ll help the individual make a smooth transition.
Training can include financial planning (for non-experts), communication skills, one-to-one performance coaching, leadership skills and several more that I don’t have space to mention.