The impact of the 2008 financial crisis and subsequent challenging economy damaged many people’s financial aspirations. Thankfully, many have seen a measure of recovery although we are a long way away from the pre 2008 levels of consumer confidence.
Every business owner should have a personal exit strategy. We sometimes refer to this as a ‘starting with the end in mind’ strategy. Key issues to consider could include:
- Passing on your business to your children or other family members, or a family trust
- Selling your share in the business to your co-owners or partners
- Selling your business to some or all of the workforce
- Selling the business to a third party
- Public flotation or sale to a public company
- Winding up
- Minimising your tax liability
- What you will do when you no longer own the business
- Whether the new owners will need or desire your involvement after the sale
A fall in the value of your retirement funds and the value of property may influence your decision as to when you are able to retire.
Whatever thoughts you have concerning the sale of your business, we know from our experience that careful planning and the right advice is essential.
Indeed, creating and putting into practice appropriate strategies at each stage of your business life is essential if you are to obtain the maximum reward for taking the risks inherent in being in business.