As a business owner it’s not just your personal wealth that’s tied up in your company, much of your emotional capital will be too.
Disconnecting emotionally from your business is as crucial to disconnecting financially and it doesn’t happen overnight. WT Value will help you transition through the process.
Preparing to successfully exit your business has four distinct stages:
1. Create a personal transition plan
Genuinely understanding your motives for change will ensure you don’t subconsciously sabotage the process because you’re not really convinced you want it.
A personal transition plan will allow you to map out how the changes will impact your personal and financial lifestyle goals and confirm the decision you have made is aligned with those goals.
Not only will this ensure you make the decision at the right time but it will also limit the chance of getting cold feet during the process and damaging you reputation with potential investors or buyers.
Considerations such as what you plan to do with your time after the transition are included along with a little flexibility to allow for the unexpected.
2. Create a business transition plan
By now you’ve been working toward increasing the value of your business and you’ll be confident of getting a fair return but the mechanics of leaving a business are complex and involve more than just knowing its value.
At this stage the transition will take on a legal complexity including the nature of the transaction, due diligence requirements, third party negotiations and closing the deal; the specifics will be dictated by the type of exit you are planning and the anticipated value of your business.
It’s important to ask these questions before the transition begins so you have time to investigate the options and pick the best one for you. Setting up the right business structure and tax and estate planning take time.
3. Implement business transition plan
Once the details of the deal have been decided and a step by step process is documented then all that remains is to put the plan into motion.
It pays to be prepared for the unexpected and build in some flexibility on timelines and outcomes. Revisit the plan as its being put into action to make sure events are unfolding in the right order.
4. Move on to new life
Whether you’re planning to be a grey nomad or stick around to make sure the next generation get the hang of things properly, the final stage in the transition is to confidently start living the new life you picked.
The transition phase is as crucial to a successful business exit as every other part of the journey and WT Value will be there at every stage to guide and support you. We will coordinate all third parties and partners on your behalf to ensure a successful transition to your new life.