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Exit Planning FAQs

Exit planning services in Sheffield, Doncaster and Northampton
Do I need an exit plan?

Having an exit plan in place up to 5 years before your exit will help you keep your business moving in the right direction. By looking at your business from a buyer’s perspective you have the opportunity to improve the business, increase its attractiveness and thereby improve its profitability and value.

Additionally, if you are forced to exit your business unexpectedly (due to illness or family circumstances, for example) it is essential that you already have an exit plan in place so you maximise the value of your business.

I’m not thinking of selling, why do I need an exit plan now?

Having an exit plan in place up to 5 years before your exit will help you keep your business moving in the right direction. By looking at your finances in good time before you leave your business you have the opportunity to improve the business, increase its attractiveness and thereby improve its profitability and value.

Additionally, if you are forced to exit your business unexpectedly (due to illness or family circumstances, for example) it is essential that you already have an exit plan in place so you maximise the value of your business.

My business is my pension, that’s all I need isn’t it?

One of the things we often hear business owners and entrepreneurs say is “my business is my pension” and “I will use the cash from the sale of my business to fund my retirement”. This is a good way of looking at your retirement; however, how do you know what your business will be worth and how much money will you need for your retirement? This is why exit planning is essential. Four key questions to ask yourself are:

  • How much is your business worth today?
  • What price will you sell your business for, when you eventually sell it?
  • Which year do you wish to sell your business?
  • How much money do you need to fund your retirement?

You need to have an exit plan in place to ensure your business is ready for sale (at the value you need to fund your retirement) in order to protect your future. To get started, we recommend you take our business attractive test to see how highly your business scores. Please click here to find out more and take the business attractiveness test.

Is my business too small for exit planning?

We would recommend that all business owners think about their eventual exit from their business and plan ahead. Ideally, you should develop an exit plan for your business at the earliest opportunity, regardless of how big or small your business is.

What does an exit plan include?

An exit plan covers a full spectrum of both personal and business issues. For example:

Personal issues

  • What would you like to happen to your business?
  • When do you want to exit?
  • How much money will you need when you exit?
  • Have you looked at tax planning?
  • What do you want to do on exit?

Business issues

  • What is your business currently worth?
  • How could you improve its value?
  • Is the business attractive to a buyer?
  • How much of the current business value is linked to you?
  • How systemised is your business?
  • How long could it operate without you for?
What makes a business attractive?

The attractiveness of a business is often determined by its risk, as much if not more rather than current performance. For example, even when two businesses with the same turnover and profitability are looked at, one is likely to be more attractive (and worth more) than the other. There are many things that must be taken into account here, which an exit plan will look at.

  • One business may rely on the director(s) and owner(s) to complete many of the operations and tasks, whereas the other has reliance and responsibility spread across the entire workforce.
  • One business may have a loyal customer/client base, where as the other relies on winning new work on a weekly basis.
  • One of the businesses is more highly systemised than the other so more able to take on additional work with very little overhead increase so future profits will be higher..

These are just three of the areas which could help determine business attractiveness. By working on any current weaknesses before you exit you can ensure you make your business as attractive as possible and get the maximum value for its sale.

How attractiveness is my business?

Take our free business attractiveness test to find out how attractive your business is to a prospective buyer and identify any areas where your business can be improved to increase its value.

Please click here to find out more and take the business attractiveness test.

How can Hawsons help?

Our specialists work closely with business of all types and sizes to help them with all aspects of exit strategy.

Our exit planning experts have a great deal of experience in this area and, by working closely with you and your business, we can help you to develop a personalised exit plan at a time that’s right for you.

Download the Hawsons Exit Planning service brochure here.

What’s the next step?

If you have decided to get the ball rolling and start thinking about exit planning then we strongly recommend that you take the time to complete the business attractiveness test.

We use a series of tools to see if there any areas that could improve the value of your business and then work with you to create an action plan to put those improvements in place over a period of time.

Please click here to find out more and take the business attractiveness test.

Contact us for a free initial meeting

To find out more about how one of the leading firms of accountants in Sheffield, Doncaster and Northampton can help you, please contact one of our specialists. We believe in long-term client relationships and understand the importance of meeting to establish that you like us and we like you. This is why we offer all new clients a free initial meeting which will enable you to have a discussion about you and your business issues.

To book your free initial meeting, please click here.

We look forward to hearing from you!

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Business Attractiveness Test Exit Planning Hawsons

Our offices

Pegasus House, 463a Glossop Road, Sheffield, S10 2QD

5 Sidings Court, White Rose Way, Doncaster, DN4 5NU

Jubilee House, 32 Duncan Close, Moulton Park, Northampton, NN3 6WL

Sheffield

0114 266 7141

Doncaster

01302 367 262

Northampton

01604 645 600

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