Exit Planning
Have you considered exit planning?
How can exit planning help you achieve the best possible terms for your sale?
The decision to sell or exit a business is one of the most difficult decisions in the life of an entrepreneur, shareholder or business owner. You have built a successful business and need to ensure that when you sell, it is under the best terms.
Whilst you may not be thinking about an immediate sale, exit planning is important, but to achieve the best possible outcome it is imperative that you plan in advance.
To achieve the best terms and conditions for your exit plan you need to ensure that the business is ready for, and fit to, undergo a sales process. The sales process is when the business will come under scrutiny and the potential acquiror carries out their due diligence. This is where RPGCC Corporate Finance can help through its exit planning advisory services.
RPGCC’s Corporate Finance team provide a value added service at every stage of the sale process.
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How can RPGCC Corporate Finance help with exit planning?
RPGCC Corporate Finance offer a review of the key areas of a business that drive and support valuation, many of which will be focused on by any acquiror as part of the due diligence process, these are:
Financial performance and position: we look at the robustness and quality of the financial information that you produce. Not just the profit and loss and balance sheet, but also the data underlying these and the key performance indicators. Do you know profitability and margin by customer and product/service line etc?
Commercial relations: amongst other things, are your key customer relations underpinned by contracts, do you have any customer concentration?
Strategy & business plan: do you have a business plan which clearly states the ambitions for the business and how you achieve these?
Organisational and management structure: do you have the right structure to deliver your strategy? Do you have a management succession plan and incentive plan for senior management?
Technology: do you have a proper and fit for purpose IT infrastructure and digital platform, have you adequately protected your IP?
Tax planning: is your shareholding structured in the most tax efficient way so as to minimise any taxes payable upon sale? RPGCC can help you plan and structure a sale in order to achieve this.
How do RPGCC Corporate Finance help?
RPGCC Corporate Finance typically undertake exit reviews for businesses that are considering sale in one to three years’ time.
Our output from the review is a series of recommendations, with an associated action plan, to address issues identified in the above areas. We normally like to follow this up with regular meetings to ensure the action plan is being implemented.
The key benefits of the exit planning review are:
Enhances valuation of the business at exit
Presents the business as professional and well managed
Reduces risk of adverse due diligence findings and hence possible changes to transaction terms upon sale
Accelerates transaction timetable and time to completion.
If you would like to speak to a member of our Corporate Finance team in London about exit planning contact us or telephone us on 020 7870 9050. Or you can visit our web chat in the bottom right corner which is manned during office hours and you can leave a message out of hours.
The RPGCC corporate finance team are always just a click or call away.
