When should I begin preparing to exit my business?
When you should start planning depends largely on what value you want to take out of the business when you exit and the market conditions.
If a valuation of your business shows that it meets or exceeds the value you are looking for, you should be able to exit sooner rather than later, assuming the market conditions are working in your favour. You should make sure that all the tax angles have been considered, especially those relating to entrepreneurs’ relief and inheritance tax planning. This means you should start getting ready 18 months to 2 years in advance of your planned exit date.
On the other hand, if your business valuation falls short of your expectations, you may have a lot of work to do before you can market the business and receive the value that you’d hoped for. In this situation, you will find external advice on how to achieve your goals invaluable. It will give you a fresh perspective on your business and its challenges, along with practical solutions to address them tax-efficiently.
Do you still have questions? Get in touch with our business consulting team to find out more about how they can help you.