Seek advice early on
- Owning your own business means often having to focus on the immediate job at hand. However, it is often costly and time effective to invest in good advice about your exit strategy early on, rather than try to resolve legal problems once issues arise.
Succession and exit planning
- Thinking about the future is especially important if you have fellow investors. Are your and their thoughts aligned? If an attractive offer was received, would you take it and would they agree? If you have a family business do you want to hand the business down to the next generation? Have you identified someone else to take over? Would you sell to your nearest competitor?
- Considering these options (and others) is important because, when the time comes, an attractive offer can create unexpected divisions between business founders and stakeholders, including management and investors.
Planning for the unplanned
- Although we don’t like to think about our death, it is important to plan for the possibility that you, as the business owner, could pass away or become incapacitated to such an extent that you cannot run the business. All owners should ensure they have made a lasting power of attorney and a Will, identifying what should happen to the business and their shares, if the worst happens. You also need to make sure someone knows where these documents are.
A good sounding board
- Having an independent sounding board to discuss future plans and ideas is always a smart move. The B P Collins team works with its clients, helping them to take a longer term strategic view of their business needs and identify potential risks, as well as dealing with immediate requirements.