Are you planning to Exit your Business
ARE YOU THINKING OF EXITING YOUR TRAVEL OR TOURISM BUSINESS?
HOW CAN YOU MAXIMISE YOUR RETURNS?
I have been working with two clients over the past months who want to exit their business. They want to maximize their returns as they exit. But in both cases they have not planned early enough to do this. They have had enough of the daily pressure and stress of keeping the business going and now want out.
How should you go about exiting your Travel Business?
You could sell to staff, sell your business to an outsider, sell to family members or maybe just close up.
Whichever option you chose you need to plan for this, to not only maximise your return but also to enable a smooth transition to a new owner.
This process could take 3 to 5 years and is a big project in itself.
If you want to maximise your return from your life’s work then you may need to groom your business to be in the best possible shape for a new owner and to get the best possible valuation for yourself.
Consider Your Options
1. Sale of Business
2. Family Succession
3. Employee Buy Out
Set a Timetable to:
1. Develop a Plan – evaluating your options.
2. Prepare the Business for sale to maximise your returns (they may not all be monetary)
HOW DO YOU INCREASE THE VALUE OF YOUR BUSINESS?
1. Value it now.
2. Benchmark against the best
3. Implement Changes – give yourself time
A truly sale-able business should exhibit the following characteristics:
1. Business Plans
That everyone understands and implements and is continuously revised as economic conditions change. This can be simple. The business plan has to have a financial plan attached as this is the objective of the exercise to increase value.
2. Clear and Workable business structure.
What is the current business structure?
Management /Operations /Human Resources/Finance and Legal
Accounting and Administration /Information Technology /Marketing
Sales and Business Development
What needs to be changed, improved, outsourced?
3. Efficient systems and processes.
Review the systems and determine whether they are efficient and fully implemented.
Employ the right people in the right jobs.
4. Market saleable products and services.
Can you enhance sales and margins with better products and services or suppliers?
You business needs to produce consistent Profits and have a low level of reliance upon the owners input and presence.
To achieve these characteristics takes time and effort, but this will be rewarded with a better sale price and transition to a new owner.
If you need further assistance in achieving a valuable exit contact TA Accounting to assist.