The 10 Mistakes SME’s Make When Trying to Find the Exit!

Exit or Succession Planning

This is based on one simple premise, that at some point in the future, every owner leaves their business, voluntarily or otherwise and at that time they want to receive the maximum amount of money in order to accomplish personal, financial, income and estate planning objectives.

Few give this much consideration at the point of starting, or whilst running their business, however at some point it will become important.
Sometimes the exit may be forced upon an owner such as the death of a partner or co-owner, divorce, realisation that the competition is winning, pressure from family or deterioration in health.

But if the process of exiting a business and succession is not done against an organised plan, then it will inevitably be done by crisis, with perhaps disastrous results.

Formulating an exit plan will provide a clear understanding of the ownership transition goals and the various steps, which will be required in order to achieve them. An owner/shareholder must begin to become clear about their attitudes to some very basic questions, such as:

• How much longer they intend working?
• What the chances are of them surviving in good health to that date?
• What would happen to the business if they did not?
• What the tax implications would be and how much after tax income they will need if they get there?

"Typically, business owners achieve operational success based on learning, trial & error, making mistakes, experience, a successful plan or strategy. However in respect of the exit from their business, in the vast majority of cases, they only get one chance!"

In helping people sell their businesses, TEN mistakes occur over and over regardless of the nature of the business. It does not matter if it is high tech manufacturing, middle tech service or no tech distribution, these same ten mistakes seem to be present.

Correct these mistakes and you will increase the amount of money a buyer will pay you for your business.

So what are the Ten Mistakes?

1. No firm decision to sell
2. Sale timing not right
3. Inadequate financial records
4. Wrong price
5. No business plan
6. Not qualifying buyers
7. Selling to the wrong buyer
8. Demanding all cash
9. Failure to train your replacement
10. Trying to sell it yourself

Do you want to learn more...then sign up now for a FREE detailed report on Exit planning by following this link: Business Planning


For more information or to contact Paul Robinson directly email enquiries@business-solutions-wizard.com or phone 01572 823588

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