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Having a clear exit strategy is a fundamental part of any business plan. It is crucial for the business owner’s future and can be a key tool in securing investment. Whether you have set up your business with the aim of seeking acquisition or you are coming closer to retirement and want to ease the transition, thinking about your exit strategy is time well spent.

What’s the plan?

It’s important to first consider how long you want to be involved with the business. Any exit strategy section of a business plan needs to include the reasons for the exit, planning and a timeline. Think about the financial goals of yourself and the business and how they will impact your exit strategy.

Exit Strategy template

When you write the exit strategy in your business plan, it is important to include: Reason for leaving Intentions for the business Market conditions Your individual goals Timeline for exit Steps to be taken before a business exit For example, if you wish to pass the business on to a family member using a succession exit strategy, you may also need time to mentor or train them and transfer contracts. It might also be wise to exit at a time when business is quieter.

Types of business exit strategy

When you are writing an exit strategy for your business plan, it’s important to choose the right type of strategy for your goals. There are a number of different types of exit strategies that businesses use, including: • Management and employee buyouts (MBO) • Merger and acquisition exit strategies • Liquidation • Initial Public Offering (IPO) • Family Succession • Selling stakes to investors or partners

Tips for writing an exit strategy business plan

Responsible business owners can protect their finances by creating a business exit plan, ensuring they can leave the business at a time of their choosing. Gain external advice from a business mentor or accountant who you trust and who has experience in business exit strategy planning. If you wish to leave the company while it’s still trading, it’s important to decide how much profit you want to leave with too.

Call the experts

If you’re looking for accountancy services in London to better understand the financial implications of your exit strategy, Highwoods & Associates has decades of experience. Message our friendly accounting team today on our online contact form to discuss your business exit strategy with an expert.
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