Although exiting your business may seem a long way away when you’re in the thick of building, running, and growing it, your exit is constantly coming closer. The exit stage is a key phase in your business’s lifecycle – in fact, it’s ultimately the goal of starting a business in the first place. And like any other such phase, exit planning is something we at MPA want to make sure you’re well prepared for – with a business exit strategy!

Let’s reflect for a moment on how an exit could impact your business and think about the plans you need to put in place to make the process a positive one, and one you warrant financially.

What is an exit strategy – and why does it matter?

A business exit strategy is an entrepreneur’s or business owner’s plan to sell ownership of a company to investors, another company or to its employees.

The goal is invariably to sell the business to the new owner as a going concern for a substantial profit, as a reward for the years of hard work spent building and growing it.

Being able to fund your next venture or lifestyle is important,  so it’s critical that your business exit plan will generate enough cash to support those objectives.

The top benefits of adding an exit strategy to your business plan

An estimated 48% of UK business owners have no exit plan in place.

That puts them at significant risk from everything from mental unreadiness to leave the business, to mistiming their exit, or simply not getting what they deserve from the sale.

An exit plan prevents these pitfalls, but it also contributes positively to the business’s current performance. Many of the improvements an exit plan will require you to put in place to attract a buyer are also those that will strengthen the business in the here and now.

How to build this into your business plan

You can’t rush a business exit plan – it can often be years, rather than months, in the making – and expert advice to guide you is indispensable. But some of the key elements to consider include:

• Resilience and continuity – Ensuring the business can continue to run without you
• Succession planning – Leaving your business in the best possible shape for a new owner
• Finding the right buyer – What plans do they have for the business? Where is the purchase capital coming from?
• Getting a fair price – A business valuation is essential, but how can you maximise it?
• Clear and insightful accounting – Strong accounting and reporting will enable you to identify opportunities for sustainable uplift over time, which is valued both by current shareholders and stakeholders, and future buyers.

At MPA, we’re here to strategically advise you at every stage of your business journey, from startup, through growth, to exit.

Ready to plan your exit strategy?

Contact us for expert guidance tailored to your journey