22nd June: Business owners seminar: company exit strategy event

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Aligning your team and exit strategy

Aligning your team and exit strategy

Whatever stage your business is at, knowing your long-term goals and keeping an exit or succession plan in mind helps with strategy and focus. By also structuring your business in the optimum way and looking to align your key employees with your objectives, you can take advantage of all the potential your company offers.

Regardless of the form or size of your business, structure is important. From small, family-run businesses, to partnerships and large groups of companies and everything in between, your business should be structured to serve your needs and deliver your exit or succession objectives effectively and efficiently.

Why is business structure important for an exit/succession plan?

How a business is structured will make a difference to potential purchasers. For example, you may have one company with various divisions, or a diverse group of companies. Different structures will attract different purchasers. It may be necessary to consolidate your business interests into a group structure to increase the value, for example.

Why do employees need to be aligned with your exit/succession plan?

A team of key people who are fully engaged and motivated to work towards a common goal will increase both the absolute value and the attractiveness of a company. Conversely, a dysfunctional or misaligned management team will slow the business down and could potentially reduce its desirability.

Designing and building the right business structure for your objectives and getting your key people in the business on board with your exit or succession plan will serve many purposes. It will help maximise the value of your company and minimise your exposure to tax as well as helping facilitate a smooth transition.

The cost of getting it wrong is high

Getting it right can mean the difference between 0% and 20% tax on an exit or between 0% and 40% exposure to inheritance tax (IHT). Getting it wrong can mean disengaged, unhappy employees who are not invested in growing your business and may be more likely to leave.

Is your business structured in alignment with your exit/succession strategy? Are your employees on the same page? Do you know what your choices are, or what the tax implications would be for different scenarios? If you would like to know more about how we can help you maximise the value of your business and minimise your tax exposure, please get in touch.