Preparation pays

“Fail to prepare, prepare to fail.” - Benjamin Franklin

Whist this can be applied to almost everything we do in life, it is especially relevant to any business owner when considering an exit from the business.

By Chris Summerscales, Seneca Partners

The majority of business owners will only have one exit event in their business lives, as such it is essential to be well prepared for an exit process in order to maximise value, ensure the business goes to the right buyer and ultimately to deliver a successful exit.

It is not uncommon for a business owner to want the business to be passed on to the management team or to a buyer or investor that will look after the workforce.

The current tax regime is favourable, with entrepreneurs relief enabling shareholders to extract capital at a 10 per cent rate (up to £10m), rather than at the typical capital gains rate.