A business is generally the single largest investment many of our clients have. Elevate can help to ensure that business owners are able to plan their future exit from the business and ensure that they receive the maximum after-tax proceeds

Maximise the Business Value Prior to Exit

Much like painting the walls and doing the gardens before you sell the house, preparing a business is no different. We encourage our clients to leave no stone unturned when preparing their business for sale, to ensure that the maximum offer is received and no money is ‘left on the table’.

Ideally, we work with our clients for 2-years prior to the sale to ensure the business is fully prepared. We undertake a risk assessment of the business and “put ourselves in the shoes of a potential buyer” to determine what risks exist that would either prevent the business from selling or reduce the value of the sale. We then prioritise and address each of the risks with a view to reducing, mitigating or eliminating them.

We understand the metrics used to value a business. In understanding this, we can then specifically target areas which (when improved) will increase the value of the business in the eyes of the potential buyer. We do this be improving either the normalised earnings or the valuation multiple, or preferably both.

We want our clients to receive the maximum. Nothing less. If you would like to enhance the value of your business, please contact us.

Developing The Exit Plan

Much like selling a house – the sale of a business needs not only a clear selling strategy, but also time to prepare for the sale to ensure that the best outcome is achieved.

Elevate has significant experience in assisting our clients to plan for their future exit. The options available when deciding to exit the business are significant and often daunting. We help our clients to simplify this process and to understand the realistic options that are available for their specific circumstances.

In formulating an exit plan we consider alternatives such as:

  • Trade Sale
  • Family Succession (handover to the next generation)
  • Management buy-out / buy-in
  • IPO / Backdoor listing
  • Private Equity participation

Consideration is given to the type of business, the industry and the preference of the owner. Once a preferred or logical exit route is determined, we then commence planning the exit strategy. This is a strategy developed to maximise the after-tax sale proceeds or to achieve the desired goals of the owners.

We recommend that any exit planning commence a minimum two years before the exit event commences. In some situations, this extended time frame isn’t possible, however we can still assist to maximise the outcome of a sale process which is delivered without the ideal lead time.

If you are contemplating your exit from a business, please contact us to discuss some of the options available to you and how Elevate can help.