//Routes to Exit
There are a number of paths you can take when considering the best route out of your business. Each comes with its own considerations – whether that’s the speed of the process, proceeds from the sale, opportunities for your family or management team, or your ‘parental instincts’ in ensuring the best for your staff and clients for the future.
Here we take a look at some of the main options available:
Natural Succession If your family members are already part of the business and, crucially, have the necessary skills to continue running the company after you leave, this may be the most desirable solution. Otherwise, you may want to involve willing family members ahead of your departure and arrange for the necessary training for them to take over the reins when the time is right. You can then decide whether to arrange a buyout with bank funding, in order to get the financial return you deserve for your years of dedication. Management Buy Out (MBO) If you have an existing management team, they may wish to acquire your shares in the business. If you feel your management team has the necessary experience and desire to continue the company in your absence, or you believe you could put a team in place which does, this could be a good path to take which would ensure continuity for your staff and clients. The management team already know your business and might face fewer hurdles in the take-over. Banks can be very supportive of these transitions. Employee Ownership Trusts (EOT) An alternative to an MBO is to look at a wider, EOT solution. Creating a trust, which would give a controlling stake to all employees, can be financially effective for both sides, and result in greater staff engagement and commitment regarding the future of the business. Trade Sale Should none of these options be available, there may be interest in your business fromwithin your sector, from competitors and complementary companies. A trade sale, through a structured merger, or acquisition, with another business connected to your industry, may be an option to consider for many.
P6
Made with FlippingBook - professional solution for displaying marketing and sales documents online