For many owners their business will represent a significant part of their personal wealth. Most will sell their business at some time so it is important to be properly prepared. Corporate finance professionals recommend that business owners keep exit in mind as they grow their businesses and include business value growth in their decision making process. This approach, including exit readiness and a focus on business value growth should be adopted as early as possible and ideally is part of the day to day running of the business.
We fully support the need for long term value growth and exit planning. It will increase exit value and encourage good business practice. It will also give the owner better insight should an unexpected opportunity (e.g. an unsolicited offer) or unplanned event (e.g. change in health) occur. We recognise that the business owner may not have the time or experience they would like to invest in value growth, and are able to act as an external and additional resource.
Some business sales fall through or generate well below their value potential. Often this is because the business has not been optimised, de-risked and in many cases is too dependent upon its owner/s.
LAUDIS can work with the owner and if appropriate, agreed members of the management team to develop the business so that the best value can be achieved. LAUDIS can help the owner:
• Strengthen the processes and decision making in a business
• Strengthen the management team and implement a succession plan
• Improve the structure and transparency of the business
• Identify and manage key business risks
• Understand the external options available to the company, including:
o Business growth acceleration using further owner investment
o Business growth acceleration using external investment
o Partial removal of capital
o Complete exit of the business
Our exit planning process aims to increase the likelihood of a successful sale, increase the sale proceeds and reduce or ideally eliminate the amount of any deferred payment.
LAUDIS aim to increase the business owner’s confidence in their future plans. This can be done by implementing an approach to increase overall business value and reduce any barriers to exit. If you need some help or just want to talk it through then please contact us for a chat.
Take a look at our Exit Planning brochure here