What is an Exit Strategy?
Running a business is an exciting venture to embark upon, however, the time to leave a business can arrive, at which point you want to be sure that you can leave it behind in a smooth, organised manner. An exit strategy offers the opportunity to do so.
An exit strategy does not refer to one fix all solution, instead it refers to a number of options available to individuals and business. These may include MVL’s (Member’s Voluntary Liquidation), Administration or a CVA (Company Voluntary Arrangement). All of which offer you the opportunity to leave your business is a less stressful manner.
Who Can An Exit Strategy Help?
Exit strategies exist to help business owners form a plan to ease the stress of exiting a business. There are a number of reasons that a business owner may choose to leave a business behind, these could include:
- They are retiring
- They have recently separated or divorced from a spouse/partner
- They no longer require the business as a form of employment/income
- They have recently sold the business
Implementing such a plan ensures that these individuals have the peace of mind to leave their business in a good situation, with minimal stress.
How Do Parker Andrews Approach Exit Strategies?
When Parker Andrews are approached by individuals looking to implement some form of exit strategy, we follow a strict process to help us best meet the needs of your business.
- Get in touch – Following initial contact, we will set arrange a meeting with the client.
- Full discussion – It is hugely important that we understand your targets and intentions with your exit strategy, so a full, open discussion is extremely important.
- Construct a plan – Following an open discussion, we will consolidate and form a plan of action, often giving you 2 or 3 options to best suit your needs and intentions.
- Outline costs – Before we begin implementing your chosen plan, we will clearly outline costs to you, helping you decide on the best solution.
- Seek engagement – This is where the final plan is put together and agreed with the client, and for us, the clock starts ticking.
- Implementation – Following agreement of the plan, we will begin the full implementation and begin working to help our client.
- Call on customer – We will assess the success of the actions that we have taken to ensure its success and that it meets the needs of the client.
Whilst we assess and action each case with a solid structure, we recognise that exit strategies are entirely bespoke to the needs of the individual or organisation in question.
How An Exit Strategy Can Work
An example of Parker Andrews implementing a successful exit strategy is when we helped a midlands-based manufacturer identify an MVL as the best exit strategy. After years of successful trading, the business came to the end of its useful life.
The business was clearly solvent on a balance sheet basis, but it was proving difficult to achieve the full price of the business premises. By implementing an MVL, we were able to allow the shareholders to take ownership of the property and deal with the sale themselves, meaning there was no pressure to sell the property under market value to free up funds.
To read more about this example, read our case study here.
Why Parker Andrews?
Parker Andrews are committed to providing the best possible service to the clients who we help. Our open and approachable team are always there when you need us, even outside of the usual 9-5 working hours. Anytime of day, you can give Parker Andrews a call.
To discuss your exit strategy solution, get in touch with Parker Andrews today.