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Exiting a Business - 7 Principles to Follow |
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Written by David Willetts
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7 principles to follow when exiting a business
1 Sell at the right time for you. This may be when the business has a strong presence in the marketplace or when you want to retire. If it is the latter start planning your exit some three to five years beforehand.
2 Be in control of your business at all times. An unexpected offer may materialize and you should be armed with up to date forecasts as well as past results, should negotiations pursue.
3 Set your strategy, plan its implementation and take the appropriate action in order to achieve results that would be attractive to prospective buyers. Build a management team capable of running the business in your absence.
4 Seek professional help in determining the worth of the business.
5 Know the marketplace; which companies, groups; organizations would be interested in buying your business.
6 Understand your tax position and that of the business. Again seek professional help at an early stage and factor tax planning into your decision making.
7 Do not assume anything; be ready for the unexpected and develop fall back positions for possible adverse actions particularly during the negotiation stage.
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