Maximising Value When You Exit Your Business
Exiting your business is one of the most important financial events of your life. It is stressful, time-consuming, and the stakes are high. And by the way, while all this is going on, you still have to run a business! Get it wrong, and your sale price will reflect the lack of care that you took in the sale process.
It is perhaps not surprising then that tax planning can take a back seat for the unwary. Unfortunately, failure to plan early for tax efficiency means you could lose significant value to the taxman. Many of the tax reliefs that apply to the sale of a business will have qualification rules, one of which is usually a time period. In other words, your corporate ownership structure must have been in place for a “qualifying period” as defined by the legislation. So if you don’t investigate the tax-efficient exit routes early, it’s likely that you’ll miss them.
The good news is that if you get everything right, you can maximise the sale proceeds from your buyer, whilst minimising the tax liability on the sale. Truly a win-win!
win-win
This session will give you the insight to prepare for a tax-efficient business exit, whether you plan to sell, pass the business to family, or organise a management/employee buyout.
What You’ll Learn
- The process and timelines for different types of exits.
- How buyers value your business — and how to improve that valuation before selling.
- The tax reliefs available for exits, and the qualification conditions that you need to meet.
👉 Outcome: The golden rule of business exit planning is to prepare your business for sale, both in terms of maximising the value you achieve from your buyer, and maximising the net value after taxes. You’ll leave with an understanding of how business sales work, some tasks that you need to think about as you begin the journey to your business exit, and your tax efficiency options. The aim is for you to know what you need to do to secure the maximum net return from the sale of your business.
Many of the tax reliefs that apply to the sale of a business will have qualification rules, one of which is usually a time period.
