PRESS RELEASE

27^TH  August 2015

Business exit plans must start now, urge Midland’s experts

Business owners considering exiting their company are being urged to put plans in place as soon as possible to ensure they receive a maximum return on their investment. And the planning and strategy for a business exit must start now, even if an owner is not planning to leave in the short term. 

That’s the message that business development expert ROM Consultancy and finance specialist Pentlands Accountants, delivered to a number of businesses in the Midlands during a recent interactive seminar. The event taught business owners why they need to start developing a robust succession and exit plan now, in order to secure both their finances and legacy following an exit. It also hammered home the message that a succession and exit strategy is key for any growing business, even for those owners who are not planning to leave in the short term. 

The advice comes as the UK economy once again starts to show signs of growth, with a number of business owners now looking at ways they can realise a healthy return on their company investments, and a number questioning how they can successfully exit their business, while still retaining maximum value and brand positioning. This event served as a poignant reminder to business owners that a proactive succession and exit plan is crucial to their business retaining value. 

According to Elinor Perry, Managing Director of Pentlands, the most successful business exit plans are put in place between three and five years prior to an owner or director actually leaving a firm, which is particularly important as a business acquisition, from presale to close of sale, on average, takes over 12months to complete. 

Elinor Perry explained the importance of proper planning, for those business owners wishing to exit their business. She said: “While on the surface putting an exit plan into place three to five years ahead of a director leaving may seem a little premature, it is crucial that business owners carefully consider wider economic factors in their decision to exit their business. For example, in the immediate period following an election, business taxation policies are often some of the first to change, which in turn could make a decision to exit less financially viable, or, in the worst case, more difficult to execute.”  

“It is important that for any business owner thinking of exiting their business successfully, these factors have been considered and a detailed plan is in place long before presale is considered.” 

Combining a number of financial aspects, with elements of professional development, the event, which was attended by such businesses as O’Brien Contractors, and Harper Chalice Group, offered advice on conducting effective financial forecasts. It also analysed the strategic steps owners can take to increasethe value and attractiveness of their business leading up to a management buyout, sale, or acquisition. 

Business owners were also able to gain valuable insight from business development experts, ROM Consultancy, on the importance of personal vision, and the ways in which business owners should utilise succession planning as a robust business tool to strengthen and add value to a company. 

Caroline Suggett, Managing Director of ROM, explained: “For many business owners, feeling caught up in the everyday challenges within their business can mean they often lack clarity on the strategic ways their business can continue to grow without them leading it.It is therefore important for business owners to look at both the personal and financial aspects of growing, leaving or selling their business. 

“This seminar helps business owners to first determine their own personal vision; how they want their life to be going forward.  It then allows a strategic plan to be put in place which delivers their personal goals as well as the company’s goals”. 

“By having a solid and detailed succession strategy in place, as well as a comprehensive business vision, which includes a financial forecast, business owners can ensure that the departure of a director runs smoothly, and their assets continue to grow even after exiting or taking an overseeing role such as Chairman; this allows the board to be proactive, take advantage of opportunities, and mitigate risk” 

The two businesses have pledged to deliver a number of further workshops to help business owners successfully exit their business. The next event, co-sponsored by Lloyds Bank SME Banking Coventry & Warwickshire, is set to take place on 20^th October at The Mallory Court Hotel in Leamington Spa, Warwickshire, with a further event also planned to take place in November.     

ENDS

Editor’s Note

Those wishing to attend the upcoming event, can do so by contacting: Caroline Suggett, Managing Director, ROM Consultancy Ltd  caroline@rom-consultancy.co.uk or by telephone, 01788 577344

About ROM Consultancy

ROM Consultancy offers executive coaching and business development consultancy, which includes succession planning, aimed at directors looking to develop, grow and energise their businesses in order to achieve their personal and company goals.

About Pentlands Accountants

Pentlands Accountants works alongside business owners to identify the critical factors in a client’s business and helping to deliver their business goals, such as exit strategies and acquisition.