Posted on 7 October 2016
An owner’s business is a valuable investment but its price can fluctuate like a commodity. Knowing when to exit and how, is critical in achieving best value. Timing an exit is difficult to predict but there are alternative options to an outright sale – a partial sale where you keep control.
It does not feel that long from the large economic financial shock that the world received in 2008 (8 years ago!). A lot of business owners feel that they have just managed to recover from the shock, and then the Brexit vote came. Regardless on your views on the outcome of this, the next 2-3 years will lead to a period of uncertainty. Why take the risk why not pocket some cash today and continue trading your business?
I believe over the next 2 years many businesses owners will be faced at looking at whether to continue owning their company or to exit. By cashing out you can have the best of both worlds.
The current banking and equity markets mean that there are plenty of funds available to look at cash-out options and the money can be received tax efficiently. I am predicting many business owners will start exploring this route.
If you wish to discuss further then please contact a member of the Corporate Finance team at Smith Cooper.