When It Comes To Business, Planning Your Exit Can’t Start Soon Enough

Paul Gilsenan of PSG Wealth Management discusses how, when it comes to an exit strategy for your business, it’s never too early for planning to begin.

December is traditionally a time to reflect on the year that has passed, and to start making plans for the coming 12 months. For many entrepreneurs this is also a time to reflect on longer term goals, including when they may decide to step away from the business and what form that will take.

That day may seem far down the line, with other concerns such as stock, staff or clients rightly taking priority. However, when it comes to a successful exit strategy, laying the groundwork can ensure you are able to avoid pitfalls, maximise available tax reliefs and preserve wealth for future generations.

Having a sensible strategy in place for your departure from the business can also focus thinking around crucial decisions in the shortterm, by drawing into sharp focus the impact on the wider value of the company in the long-term. Planning for an exit can be as straightforward as reviewing current arrangements to ensure your assets are delivering as efficiently as possible, to restructuring areas in order to allow for sustainable growth, such as establishing recurring revenue streams. Having a well-established exit strategy can also be of assistance when it comes to attracting potential aquirers for the business, giving them a clear understanding of the asset they would be purchasing. A solid exit strategy can also have an impact on your tax liabilities, from how your business is structured to whether your plan involves selling assets or shares, to how you can maximise the use of Entrepreneurs Relief or Business Property Relief.

In both cases there are a number of qualifying criteria that must be matched in order to qualify for the relief, including the number of assets held in trust and the period of time shares have been held. Marrying each of these criteria to your personal circumstances and plans for the future. These can include selling the business in whole, passing ownership to future generations, beginning again with a new challenge, or simply stepping away and living the retirement you’ve always dreamed of.

At PSG Wealth Management, our focus has always been on helping clients make the most of their money and achieve their financial goals through the development of lifelong relationships, wealth management strategies and financial planning services. In the case of successful exit strategies, beginning that relationship early can have a significant impact on the final outcome.