At some point in time, every business owner leaves his/her business, voluntarily or otherwise. A clear exit strategy should be a part of your business plan from the beginning as it affects key decisions about how you grow and develop the business. The business plan and exit strategy must be compatible with your personal goals for income, flexibility, lifestyle, family, retirement, and estate planning objectives. Exit planning involves complex issues such as wealth preservation, contingency planning, and income tax, estate, and gifting regulations. Few business owners give this much consideration when starting their business; however, at some point in time it will become a very important consideration. The time to start planning for this is now.
Even with an exit plan, there are four ways to transfer your business interest:
- Transfer ownership to your children.
- Sell to other owners or employees.
- Sell to a third party.
- Liquidate in an orderly way.
Trying to go it alone can prove expensive, even catastrophic. For most business owners, this is a once-in-a-life-time event and it needs to be done right. In the same way that you made the decision to invest in your business and nurture it, you must plan ahead to maximise your return from a disposal or transfer of the business.
Formulating an effective exit plan will provide a clear understanding of the ownership transition goals and the various steps which will be required in order to achieve them.
We in Opes Wealth Trust will help you:
- Clarify your personal goals and objectives.
- Conduct a detailed analysis of your business.
- Select the most appropriate exit route, having regard to your objectives and other issues such as tax efficiency.
- Implement and oversee the exit plan.