Exit Strategy Essentials: Preparing Financially for Your Business Transition
At Kerry Lehane & Co we know every business journey eventually leads to a transition — whether through retirement, succession, or sale. Yet many business owners delay planning for this pivotal moment until it’s too late, potentially leaving value on the table or exposing the business to unnecessary risk. A well-prepared exit strategy doesn’t just ensure a smoother handover — it also protects your financial future.
Start with a clear vision
Before diving into the numbers, consider your long-term personal and professional goals. Do you want to retire completely, remain involved in an advisory role, or hand the business over to family or employees? Each scenario has distinct financial and structural implications. Clarifying your intentions early helps shape the right financial strategy.
Get your accounts in order
A prospective buyer or successor will scrutinise your financials. Well-organised, accurate, and up-to-date accounts signal stability and professionalism. If your records are patchy or overly reliant on personal involvement, now is the time to separate business and personal finances, clear up liabilities, and formalise any informal arrangements — such as loans, leases, or off-balance sheet agreements.
Focus on increasing business value
Buyers don’t just purchase financial performance — they buy future potential. Strengthen recurring revenue streams, document key processes, and reduce over-reliance on the owner or a single client. Build a leadership team that can operate without you, and look for ways to demonstrate growth opportunities, strong customer relationships, and brand equity.
Know what your business is worth
Understanding your business’s current valuation — and the levers that influence it — is vital. Engage a professional adviser to conduct a valuation and identify areas that could improve your exit multiple. Factors like consistent cash flow, diverse income, strong IP, and low risk all contribute to a higher sale price.
Plan your personal finances too
Exiting a business isn’t only about the business. Make sure your personal financial plan supports life after the transition. This may involve pensions, investments, tax planning, or the structure of the sale itself — for example, staggered payments or earn-outs. Early planning helps reduce tax liabilities and ensures a smoother transition into your next chapter.
Conclusion
A successful business exit isn’t something that happens overnight. It’s the result of careful, deliberate planning — financially and strategically. By preparing early, organising your accounts, and focusing on building value, you’ll be in the strongest possible position when the time comes to step away.
If you would like to discuss your business needs. Call Kerry Lehane & Co Accountants on 023 8856054 or email info@kerrylehane.com
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