The planned exit from the business can be for several reasons which typically are:
- Shareholders/directors of a private company looking to retire or realise wealth
- Irreconcilable differences at board level
- No obvious successor to take over
- Groups wishing to dispose of a non-core business
- MBO/MBI teams looking to exit to realise wealth for themselves and other investors
In your case you should consider all options. Here are a few:
- Partial sale
- A trade sale
- A Management Buy-Out (MBO)
- A Management Buy-In (MBI)
- Financial Restructuring
- Some share capital bought back by the company
- Prepare management to run business and change your rôle
The best way forward is an appraisal conducted by a respected firm of advisors. This appraisal should enable you to judge the best route. Typically this appraisal will include the following:
- Assessment of the value of the business
- Noting your personal objectives and timings
- Presenting the business to maximise value
- Identify and predict problem issues
- Consider all alternatives
- Develop an action plan
With this information to hand, a better judgement will be made of the various options.
In general the best time to sell is:
- When you are on a high
- Feeling confident
- You don't need to do it
However, this is not always possible and it is important to consider, above all, your own personal well-being and your family. If you are feeling that it is time to exit you, and only you, know the depth of your feelings.
The best route is to seek professional advice. Sometimes just talking it through can restore your perspective and show the way forward.
Trust Richmond for sound advice.
