9 minute read
Why having a clear exit strategy is so important
By Dan Morgan, Managing Partner, Haines Watts Esher
Many of the business owners I work with are brilliant at setting goals for the direction of the business and have a keen focus on the immediate future. However, prioritising your long term succession goals are also vital to ensure you get the best possible outcome.
WHERE DO YOU START? It’s never too early to start the planning and for the most part if you start considering your exit plan when you want to leave then you’ve left it too late. A solid exit plan will usually take between three to fi ve years to implement so thinking ahead is key.
Your motivations and personal goals will form the basis of your succession plan. Do you want a clean break? Or are you happy to keep a foot in the business moving forwards?
Your succession plan isn’t set in stone. Your goals will shift and change and just as your business plan will adapt to these changes so will your succession plan. Regularly reviewing this means that it will remain fi t for purpose.
Succession planning doesn’t always mean selling the business. The three most common routes to exit are:
1PASSING THE BUSINESS DOWN TO A FAMILY MEMBER This is an attractive option for many founders who want to secure their legacy whilst also retaining wealth within the family. Passing the business down to a family member often means that the next leader will have grown up alongside the business and is aligned with its values.
Family succession also allows for consistency which ensures staff and customer retention as the business is handed over to trusted and familiar hands. However, this option means it is likely that you will keep a foot in the door as there is an additional balancing act that comes with intertwining family and business.
2NEGOTIATING A MANAGEMENT BUYOUT This has a similar advantage to a family option of keeping key skills and knowledge within the business. For obvious reasons, having a strong management team in place is vital for this kind of exit strategy. You need to look at your existing team critically and understand where any gaps are, these will need to be plugged either through additional training or some key hires in the run up to your exit. If you believe that your team aren’t ready to lead or that they don’t have the funds for a traditional management buyout then an Employee Ownership Trust can offer a good alternative here by allowing you to keep an executive role in the business while giving up your personal ownership in the controlling stakes.
3SELLING THE BUSINESS TO A THIRD PARTY Some owners are looking for a clean break from the business and this is best achieved through sale. If this is your chosen route you need to begin to form a clear timeframe in order to maximise business value.
Key areas to work on will be: n Ensuring solid fi nancial information is available n Making your business as profi table as possible but also balancing investment levels n Managing any current and future risks that may put off a buyer n Keeping cash within the business – this can be achieved through proper tax planning.
Talk to us if you need advice on how to put your business in the best position for you to reach your exit ambitions.
www.hwca.com/accountants-esher T: 020 8549 5137 E: esher@hwca.com
1 – 4 September 2022 1 – 4 September 2022 UK Corporate Games TM UK Corporate Games
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Invest in your Invest in your Employee Health Employee Health and Wellbeing and Wellbeing
Engaging your employees with social team building activities is more likely to create a united workforce. Engaging your employees with social team building activities is more likely to create a united workforce.
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t goes without saying t goes without saying that the most valuable that the most valuable assets in any business assets in any business are its people. Employee are its people. Employee engagement, health and engagement, health and wellness is now a firmly wellness is now a firmly established HR topic for established HR topic for businesses across the businesses across the UK. There are many interpretations on UK. There are many interpretations on how engagement is defined and the how engagement is defined and the measures put in place to achieve it. measures put in place to achieve it. A mixture of financial and nonA mixture of financial and nonfinancial rewards is often incorporated financial rewards is often incorporated into management decisions to ensure into management decisions to ensure employees are appreciated and employees are appreciated and motivated. Popular employee benefits motivated. Popular employee benefits offered include gym memberships, offered include gym memberships, cycle to work scheme, holiday trading cycle to work scheme, holiday trading to healthy canteen choices. These types to healthy canteen choices. These types of rewards are achieving employee of rewards are achieving employee satisfaction but do they really show satisfaction but do they really show investment and reward to continue investment and reward to continue driving employee productivity and a driving employee productivity and a positive workforce? positive workforce? These types of benefits can sometimes These types of benefits can sometimes be underwhelming and miss out be underwhelming and miss out on some of the key aspects of real on some of the key aspects of real ‘employee engagement’ including ‘employee engagement’ including team work, staff inclusions, staff team work, staff inclusions, staff retention and addressing barriers. retention and addressing barriers. Therefore, more and more businesses Therefore, more and more businesses are choosing to invest in social, crossare choosing to invest in social, crossfunctional and team building physical functional and team building physical activities outside the office, as a activities outside the office, as a measure to unite and engage their measure to unite and engage their staff. With the endless positive impacts staff. With the endless positive impacts this can have on staff at all levels, it this can have on staff at all levels, it becomes an investment for a business becomes an investment for a business rather than a cost. rather than a cost.
THE THE ULTIMATE ULTIMATE MIX OF SPORT MIX OF SPORT , , BUSINESS BUSINESS & TOURISM & TOURISM
UK CORPORATE GAMES – how we can get you fit for business. UK CORPORATE GAMES – how we can get you fit for business.
he UK Corporate Games T are unique, as they are a great example of the power of Sport and Business coming together to support employee confidence, low morale, staff integration, loyalty & team spirit.
Following the UK Corporate Games in
Nottingham, we are proud to say more than 93% of participants agreed or strongly agreed that the games had improved their morale. Participants were able to break down barriers, build relationships, relieve stress and were proud to represent their business.
It also provides a platform for organisations to network, raise brand awareness and explore business opportunities. In 2018, Browne
Jacobson reported that 96% of their participants met at least one person within the business they wouldn’t normally have the opportunity to speak to and ultimately improved their knowledge of the business. This is endorsed by returning teams such as
Nationwide Building Society, Freeths
LLP, Safran Landing, Royal Air Force,
MOD, Lloyds Banking, JP Morgan, Grant
Thorntons, Places for People, Dominos
Pizza, Accenture ……. just to name a few.
he UK Corporate Games T are unique, as they are a great example of the power of Sport and Business coming together to support employee confidence, low morale, staff integration, loyalty & team spirit.
Following the UK Corporate Games in
Nottingham, we are proud to say more than 93% of participants agreed or strongly agreed that the games had improved their morale. Participants were able to break down barriers, build relationships, relieve stress and were proud to represent their business.
It also provides a platform for organisations to network, raise brand awareness and explore business opportunities. In 2018, Browne
Jacobson reported that 96% of their participants met at least one person within the business they wouldn’t normally have the opportunity to speak to and ultimately improved their knowledge of the business. This is endorsed by returning teams such as
Nationwide Building Society, Freeths
LLP, Safran Landing, Royal Air Force,
MOD, Lloyds Banking, JP Morgan, Grant
Thorntons, Places for People, Dominos
Pizza, Accenture ……. just to name a few.
IT’S EASY TO ENTER! IT’S EASY TO ENTER!
Enter online or request details from the Games Office. The Games Entry Fee is £85 + VAT per employee (Supplement applies to Golf, Karting, Tenpin) Enter online or request details from the Games Office. The Games Entry Fee is £85 + VAT per employee (Supplement applies to Golf, Karting, Tenpin) Entry Fee includes Entry Fee includes • Welcome Festival • Welcome Festival • Grand Parade of Athletes • Grand Parade of Athletes • Sport Participation • Sport Participation • Digital Souvenir Programme • Digital Souvenir Programme • Medals for 1st, 2nd & 3rd • Medals for 1st, 2nd & 3rd • Corporate Awards • Corporate Awards
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PLACES FOR PEOPLE – “Our Dragon PLACES FOR PEOPLE – “Our Dragon Boat team came as strangers but left Boat team came as strangers but left as friends” as friends”
BROWNE JACOBSON – “We are now BROWNE JACOBSON – “We are now building a legacy around health, building a legacy around health, wellbeing and collaboration” wellbeing and collaboration” Lloyds Banking Group - “On behalf Lloyds Banking Group - “On behalf of the Badminton Squad, I would like of the Badminton Squad, I would like to extend a huge thank you to all your to extend a huge thank you to all your hard working and very dedicated hard working and very dedicated staff. We are all still buzzing from an staff. We are all still buzzing from an excellent Games” excellent Games” and view our brochure and view our brochure Visit our website for more information Visit our website for more information
