Ways To Exit a Business

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Ways To Exit a Business

Ways To Exit a Business

Hi all. Found an excellent article that I am sure many will relate to. Hope you get something useful out of this…

Every business owner will eventually exit their business. Reasons for exiting a business include decreasing profits, increasing competition, changes in health or life goals, retirement, passing it on to family members, or cashing in on your goodwill and success. You may even decide to exit your business because it is growing too quickly. Some owners exit their business voluntarily, while others may have no choice.

You need to prepare for exiting your business, as it can be a lengthy process involving various financial, legal and operational obligations. The idea is to have your business in the best possible shape before you exit.

Ideally, you should document an exit strategy in your initial business plan. Talk to your solicitor or financial adviser about different exit strategies available to your business.

The following are the most common ways of exiting a business.

Succession planning

If you have spent many years developing and growing your business, the idea of selling your business on the open market may not be as appealing as passing it on to someone you know and trust. This type of exit strategy is known as succession planning.

Succession is about ensuring the ongoing success of the business through a smooth transfer of control. This requires a lot of planning. A formal succession plan should define exactly who will take over the business, when they will take over the business and how they will take over the business. Learn more about succession planning.

Looks like really useful info, eh? Just click here to find out more. If you’d like to share perspectives or discuss how it relates to your business, call me on (0407) 764-261 or email me at rohanwood3@bigpond.com.

Category: UncategorizedBy Rohan Wood October 9, 2018

Author: Rohan Wood

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“Having the ability to ask questions on the spot and the round table discussion was great. The pace was hectic, and it was a long, great day of strategies.”

Noela TscheinigAll About Bakery Equipment (EXITRoom member)

“I have known Rohan for a number of years both on a professional and personal level. Most obviously, Rohan is a great strategic thinker and communicator. For me he is a trusted authority on all things to do in the fix, scale and exit space. He knows all of the pieces of the puzzle, which strategies to use and when best they can be applied. The outcome speaks for themselves. Having an agricultural background like myself, he speaks openly and honestly and is not afraid of having the tough conversation. He is the guy that I want my corner, batting for me, so I can get on with what I do best.”

Gavin ScurrPinata Group (Australia’s leading berry, mango and pineapple producer)

“I was lucky to be in an EO (Entrepreneurs Organisation) forum when Rohan took over as our moderator. To say that the forum was dysfunctional prior to Rohan’s leadership was an understatement. Within a short time, the forum was back on track with clear goals and the accountability systems to ensure that our time together was effective (no mean feat given that there were more than eight successful business owners within that room, all with their own agendas and goals). Within 12 months, we were recognised as Brisbane’s leading forum, fully outcome focused and thoroughly enjoying the journey. I was soon to realise that Rohan employs the same systems and techniques that he uses when he buys, builds and exits his enterprises. He is a master at this game and if you get the opportunity to work with him – go for it.”

Nathan HanceyHancey’s Turf (Australia’s leading provider of turf and genetics)

“I connected with Rohan via LinkedIn. He had an interesting profile and I’m looking at scaling my business to the next level. I’m also exploring how to build an asset that is attractive to sell if I decide I’d like to one day. We connected and he sent me a link to his Sellability Score questionnaire. It took 15-minutes to complete and to be honest, I was initially a bit sceptical and just thought it was some sales gimmicky thing. In fact the reverse was true. I filled it in, got my Sellability Score report (benchmarked) and received an offer to speak to Rohan further about the report. I really thought it was going to be a hard sell but I was mistaken. We spoke out my business, he concentrated and listened to me and we spoke about what makes my business attractive and the business Sellability Score. While we both agreed that I am not at the stage in my business to take our relationship to the next level, Rohan sent me a report and pointed me in the right direction to get things cracking. I really got value out of our time together and my goal is to work on the business so Rohan and I can work together moving forward. Sceptical at first, then realised it was a risk free process that added immense value.”

Jarra CampbellBondi Alchemist – (Owner / Founder of Australia’s inspirational fashion surf label)

“I was lucky enough to work with Rohan after he had just disposed of his last business, prior to him setting up the EXITGuy. We had hit a glass ceiling regard to our expansion program and needed assistance to go to the next level. Rohan was instrumental in putting the foundations in place, setting the strategy, measurements and getting the team (and me) focused on the things that matters. The results have been outstanding – the entire business knows the numbers, our ATV’s, our targets, and what is required to scale the business. The numbers speak for themselves, although most importantly – so do the team.”

Adam ThompsonStenhouse Lifting (National provider of safety equipment and compliance testing within the crane industry)

“I worked with Rohan closely during our early years of expansion. While this was nearly 16 years ago, we still employ the same foundations as were implemented back then. The business now has grown globally, I am still in regular contact with Rohan and still use the same business building blocks today. While it may be simple – it works.”

Sal BattagliaPerfect Potion (Global Authority on Aromatherapy and Owner)

“I’ve just completed our alignment session and out first EXITRoom after being invited to attend. We want to scale and build our asset. If I do nothing else in the next 12 months, I know I have my money’s worth. It’s been an awesome experience to date.”

Roland GlendonHi-Tech Fibre Group (EXITRoom member)

“Across my career I’ve often had the privilege of working with some outstanding consultants from McKinsey, BCG. Colleagues who went to Harvard and Stanford to do MBAs and my peers from INSEAD. I would stand Rohan up against any of them on an equal basis in terms of grasp of business and consulting frameworks. However, what distinguishes Rohan is his ability to apply the highest quality thinking in a manner that is practical and 100% relevant for SME business like the one I own. Every time Rohan picked the few critical right things for the business at that time, in the right depth, and communicated them with my team in a simple way that created momentum for execution. In short Rohan breaks it down and just gets the job done and I’m incredibly grateful for the impact he has had every time we have engaged him over the years.”

Chris SelwaManaging Founder and Director, Medigroup EBI, MBA (INSEAD), MEng (Cambridge)

“I have worked with Rohan on a number of occasions. Most recently we were approached by a VC company for a possible buy out. We engaged Rohan to apply his valuation techniques on a number of parties to see where the value was within the deal. We were talking significant numbers with life changing implications for all involved. Rohan presented his findings to our global board, giving us all clarity and the information required for us all to come to the same conclusion. What could have become a major distraction, actually became a motivation to continue our global expansion to leave an even bigger legacy to come.”

Wayne RomerDeswick Group Pty Ltd (Global provider of software to BlueChip mining organisations)

“After a couple of sessions with Rohan, we’ve learnt more about how our company’s finances worked than we had with any accountant of the past 21 years. Rohan broke down the components into a format that we could clearly communicate to the rest of our team. He now provides the accountability framework to implement our strategies to improve our business moving forward. Already, we have seen positive changes within us and also the business. Looking forward to the best 12 months yet for profitability and growth.”

Chris GreenFood Strategy Group (EXITRoom member)