Smart business owners can draw on a wealth of specialist advice when putting together a business exit strategy, so they are ready to sell at any time.
Parke Lawyers Managing Director Jim Parke says trusted professionals such as intellectual property lawyers, contract specialists, and property and trust experts can help financially-savvy business owners exit a business for profit or transition out when circumstances change.
Mr Parke says business operators should think of the future and reward their time by putting in place a good business exit strategy as part of strategic planning.
Entrepreneurs who set up good business exit strategies can ensure their businesses can be sold quickly when the time is right.
Mr Parke says owners caught up in business sometimes forget to prepare for life down the track.
“Businesses that have an exit strategy in place, developed with the assistance of knowledgeable business law and finance specialists, can be worth more to a buyer,” Mr Parke says.
“Without an exit plan in place, a business might be passed over for failing key due-diligence checks or be valued at significantly less than if a proactive plan had been adopted from the get-go.
“A professional can help business owners proactively-avoid risks to a good exit — such as unsuitable legal structures— and run the business to ensure maximum benefits on exit.”
Mr Parke says business owners preparing for retirement could draw on the expertise of a team of professionals, such as those at Parke Lawyers, as they plan to move into a new phase of life.
Sometimes business owners wind down or walk away from businesses when they’re at the end of their careers, but they don’t need to take that approach.
“A pre-set agenda for an exit can reduce the stress of succession planning and maximise returns on investment for business owners who have often put in long hours over many years.”
Mr Parke says building a refined exit strategy is a vital activity for any business owner.
“Even newcomers to business such as Amazon sellers, digital businesses or newly-qualified tradies can have an exit plan in place to ensure they reliably trade with a departure in mind.
“Businesses can be valued at three times the value of annual revenue at time-of-sale, so making smart moves along the way can be an important way to maximise their future payday.”
Mr Parke says it is prudent to seek advice from the business law specialists at Parke Lawyers to best prepare for a business exit strategy. A legal professional with expert and specialist knowledge will assess an owner’s needs and canvas potential future options.
“Savvy owners need to keep an exit in mind to ensure they’re ready for the next stage of life,” Mr Parke says.