Sig Biz Advisors

If the Exit / Succession plan is not done by plan in advance of the need, it will be done by crisis, with potentially disastrous result. Statistically only 24% of owner managed businesses are transferred down one generation and 14% two generations.

The difference in capital gain or retirement income is very considerable in most cases between a planned exit and an unplanned one. It is impossible to give a specific percentage figure without knowing the individual circumstances of your business. The gains apply just as much to small businesses as larger ones.

All people who drive a business need an exit / succession plan. This leaflet deals with small businesses, be they sole traders, partnerships or limited companies.

There are a variety of reasons which may lead to the wish to exit. Retirement, ill health, long term industry trends or simply a wish to do something new are some of the most common reasons. There is also one special circumstance which should be planned for : the owner(s) death. Whilst most business owners carry life insurance this is not enough to guarantee the continuance of the business.

An exit plan is more frequently used to describe the sale of the business to ‘outsiders’ or occasionally the tidy ending of a business. Whilst a succession plan is more often used to describe a plan involving the continuance of the business by family members or members of the company. These distinctions are not hard and fast.

Start now! That is probably the most important piece of advice in this brochure. Whether your goal is to maximise the capital gain from the sale, secure a comfortable retirement, ensure employment for the current workforce or pass it on to other family members there are actions to be taken.

Sig Biz Advisors can help you to ask the right questions and start to formulate a plan. You will probably need expert help in some areas of this plan. If you do not already know of experts in the field we can put you in touch with them as required. It should be stressed that the best Exit plans do require specialist help and should not be attempted by those who do not do work regularly on exit & succession planning.

We work with the Institute for Independent Business on exit planning and other matters in order to find the best specialist for the job at a price that is good value and fair to you.

Telephone for a detailed chat or to arrange a meeting. This brochure is intended only as an introduction to the subject and is deliberately kept jargon free.