If you own or run a business, you should have an exit plan.
A good exit plan will cover your personal exit strategy as well as dealing with the business, looking at:
Timing: you want to exit at the right time, in the right way, to maximise the value and potential returns, while also making sure the detailed preparation and planning are in place
Optimised investment and value: You don’t want to waste all the hard work and investment you have put in to building up your business. You want to make sure that investment and effort are recognised and valued appropriately.
The aftermath: if the company is to continue after your exit, you want a succession plan to secure the future and minimise disruption to staff and clients.
Sale/merger/acquisition: if you intend to sell the company as part of your exit plan, or if your exit will follow the acquisition of another business, you will want a considered plan making sure all angles are covered.
How KLO can help
Our exit planning specialists consider all these aspects together with a full analysis of the prevailing market and economic circumstances to make sure you secure the best deal for your company and your own financial future.
With experience across all sectors and all sizes of business, we understand completely the sensitivities of individual exit concerns, especially in family businesses and small or micro-businesses.
Your plan should be flexible and we recommend reviewing it periodically to take account of changes in your business, personal or family situation and the wider economic environment.
When you’re ready to execute your plan or any element of it, we can support you through every stage of the process or we can manage it all for you.
|Trade Sale||Selling your business to another organisation|
|Family Succession transfer||Passing the business on to the next generation of owner|
|Management Buy Out (MBO)||The existing management team and/or employees buy the business.|
|Management Buy In (MBI)||Outside investors acquire the company and put in their own management team.|
|Buy In Management Buy Out (BIMBO)||This is the most favoured exit route for providers of debt funding. Where the Management Buy Out team (MBO) is unable to either raise the equity or debt funding package, they seek an outside investor to strengthen the credibility of the debt lending proposition.|
|Vendor-assisted MBO/MBI||The shareholders of the company agree to sell their shareholding in stages|
|Merger with another company||The shareholders of two businesses merge their companies and a significant part of the management remains to run the joint company; generally small amounts of capital is paid to any shareholder at the outset, though one or more may realise their capital in a reasonably short space of time|
|Initial Public Offering (IPO)||A company flotation through an IPO takes your privately owned company into public ownership, with the shares traded on a market such as a stock exchange. In an IPO, the shareholders will usually sell a small percentage of their shares and issue a block of new shares.|
|Selling assets and closing down||Worst case option – only if needs must…. all other options preferable!|