Where is the value you are adding to your business 141015
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Having started and run your own business, how can you walk away from it with a spring in your step, money in your pocket and a clear conscience?
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Where is the value you are adding to your business 141015
- 1. Where is the value you are adding to your business? Wednesday 14 October 2015 Old Down Manor Foxholes Lane Tockington Bristol BS32 4PG
- 2. Where is the value you are adding to your business? • Where is the value you are adding to your business and how do you get it out? • When is the best time to plan your exit? • What do you need to do to make your business exit ready? • How much is your business actually worth – with you and without you? Having started and run your own business, how can you walk away from it with a spring in your step, money in your pocket and a clear conscience?
- 3. Introductions & Expectations • Name? • Business? • Owner/Director? • With others? • Do you have an exit plan? • Expectations from this morning
- 5. Where is the value? • Profit • Turnover • Assets • Intellectual property • Brand • Customers • Balance Sheet
- 6. What type of business? • Sole Trader • Partnership • Limited Company • Lifestyle business • Growth
- 8. Exit Strategies 1. Just take the money – Pay yourself the maximum salary and dividends the business can stand (lifestyle business) – Wind up the business when you retire • Pros – Requires little planning – Usually more tax efficient than being employed • Cons – May be less tax-efficient in the long run – May damage long-term prospects for the business Owners Directors Employees
- 9. Exit Strategies 2. Liquidation – Wind up the business when you retire – Make staff redundant – Pay off any creditors – Distribute remaining funds to shareholders • Pros – Relatively straightforward • Cons – Only realise market value of company’s assets Owners Directors Employees
- 10. Exit Strategies 3. Sell to your staff (MBO) – Sell all your shares to your staff or – Sell some of your shares to your staff, keep the rest and live off the dividends • Pros – Motivates staff – You keep a share in the business • Cons – Have to be confident staff can run the business – May require financing New Owners Directors Employees
- 11. Exit Strategies 4. Sell the business – Find another business or other individuals to buy you out • Pros – You will probably get a better price than an MBO • Cons – Buyers may want to tie you in for a number of years New Owners Directors Employees
- 12. Exit Strategies 5. Go public (the IPO) – Sell the company’s shares on the stock market • Pros – Much greater reward than any other exit strategy • Cons – Expensive and risky New Owners Directors Employees
- 13. Exit Planning • It is never too early to start planning your exit • Get everything in order • Think about how your business will run without you • Discuss with other shareholders, directors, employees • Seek advice • Don’t leave it till it is too late!
- 14. Full service history, all paperwork in order
- 15. Trust me
- 16. Close Thank you for attending david.doughty@excellencia.co.uk @daviddoughty https://uk.linkedin.com/in/daviddoughty https://www.facebook.com/DavidWDoughty