There are lots of exit options: MBO, MBI, EOT, trade sale
When considering your exit strategy, it is worth remembering that there are lots of options available to you. Many business owners look for a trade buyer, and that might be the best option for you too. However, you might also want to consider selling to your existing management team (MBO), selling to a private investor (MBI), or undertaking employee ownership. Each of these options involves different preparation and execution processes and it is well worth considering what is best for you in plenty of time so you can plan accordingly.
Preparation is key to a successful sale
Whichever exit option you choose, being prepared will make the process much simpler. Having easy access to relevant documentation, well prepared accounts, and ensuring that there are no skeletons in the cupboard will make due diligence much quicker. Similarly, if you are looking to find a trade buyer, being prepared before approaching the market could be the difference between a successful sale at the right price and last minute price chipping or deals falling over.
You will be needed for a transition – don’t leave it too late
Whichever exit option you decide to pursue, it is likely that you will be required to stay on in the business for a period of time to aid with transition. If you leave your exit planning until too late, you’ll end up leaving the business much later than you hoped.
Continuation for the business, security for staff
Preparing for sale means that the transition from you to the new owner is much smoother. This provides better continuity for the business, more security for your staff, and means that your handover period is probably much shorter.
You might prefer a long-term transition, handing over ownership and the day to day running of the business over time
It might be the case that you would prefer a long-term transition, handing over ownership and the day to day running of the business over a longer period of time. In this case, planning ahead and ensuring you know your exit timeline is very important.
Contact Details:
To discuss in confidence, contact MGroup:
01865 552 925