Exit Planning
What is exit planning?
Exit planning is vital for business owners, requiring careful thought on how to leave the business while maximising value and ensuring a seamless transition.
This process centres on an exit strategy, which serves as a roadmap for ending your involvement in the business. It involves preparing the business for sale or a change in ownership. A well-crafted exit strategy can not only boost the business’s sale price, but also ensure its ongoing success under new management.
Types of Business Exit Strategies
Here are some common exit strategies that business owners consider:
- Selling to a Partner or Investor:
- If you have co-owners, you can sell your share to a partner or fellow investor. This friendly buyer is often someone you trust, which can lead to minimal disruption in business operations.
- Pros: Continuity in business operations, familiarity with the buyer.
- Cons: Convincing a partner to acquire your share can be challenging.
- Family Succession:
- Passing the business down to a family member is a common exit strategy. It ensures continuity and often aligns with family values.
- Pros: Legacy preservation, smoother transition.
- Cons: Family dynamics can be complex, and not all family members may be interested or qualified.
- Employee Succession (MBOs and EBOs):
- Selling the business to existing managers or employees who are familiar with its operations.
- Pros: Continuity, commitment from insiders.
- Cons: Financing the buyout can be challenging.
- Liquidation and Bankruptcy:
- In unfortunate situations, liquidation or bankruptcy may be the only viable exit strategy. We work with various insolvency practitioners and will provide warm introductions if this is the only option for you.
- Pros: Closure and resolution.
- Cons: Financial losses.
Our framework
- Valuation Services:
- We assist business owners in estimating the current and potential value of their business using various tax-based valuation methods (not a commercial valuation).
- Exit Planning Workshops:
- We host workshops to educate business owners about exit planning.
- We cover topics like tax implications & legal considerations to help you with your decision making process.
- Legal Guidance:
- We work with your legal advisers to ensure that the paperwork meets your objectives from a tax perspective.
- Successor Training:
- We work with the next generation of business owners to create a smooth transition plan, whether it’s passing the business to family members or grooming internal successors.
Testimonials
What our clients say about us
Mike Perry
The whole team are incredibly helpful and great at what they do. I can't recommend them enough!
Malia Brown
Thank you to [The Phinch] team for all your support over the years. It's very much appreciated and valued.
Grace Eden
Excellent guidance through process with a high degree of expertise. A very smooth experience.
Jennifer Muller
I have used [Phinch] services for many years. [The] team have guided me through the complicated processes of US taxes as an expat, and stayed on top of any changes in filing rules. Highly recommended.
Larissa Bulla
[The Phinch] team have been incredibly helpful in the preparation and filing of my US tax returns and FBAR submissions, even when I have been less than fully organised. The team are always prompt and professional. They stay abreast of changes in annual tax rulings and have helped me secure rebates or stimulus payments where these are due. I highly recommend this company.