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Bolt the door
Your exit strategy should cover the following areas:
•Ensuring
that your business structure is tax effective
•Entering
into agreements with your co-principals to facilitate your exit
•Choosing
your optimum exit option
•Grooming
your business to improve its value through implementation of an operational
business plan
•Preparing
and implementing a master exit strategy plan
•Integrating
your personal financial planning with your business exit planning
•Achieving
a successful disposal for the maximum after-tax price.
Even if you are not planning to exit your business in the foreseeable
future, you should put in place the foundations for future growth and
risk management, namely:
•A
tax-effective structure (with regard to capital gains tax, inheritance
tax, income tax and corporation tax)
•A
business continuity plan (covering, for example, shareholders' and partnership
agreements, employee contracts, key person insurance)
•Operational
business plan
•Where
appropriate, business valuations (or opinion as to value).
Article date January 2004
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