How do I exit my business

The reasons for deciding to exit a business can be quite varied including health, marriage, retirement, financial reasons both good and bad, new plans etc. Whatever the reason, when you do decide to exit the business, you need to look at your options.

Use a Business Broker

This is the most commonly used method. Similar to selling a house, the vendor pays a fee to the broker to promote the business for sale and be the in between person in the negotiations. This has a distinct advantage as you engage the broker to take control of the process.

Advantages:

  • Degree of separation between the buyer and seller
  • Pre-qualify the buyers purchasing ability before disclosing all your details
  • Have an experienced negotiator control a mutually beneficial outcome
  • Let the broker take the frustration out of the process for you

CPI Business Sales offers this service.

Sell it yourself

You might decide to sell yourself. You could put a note in the window or advertise your business for sale. This is not the common way of selling as most vendors would prefer to focus on running their own business, and engage the expertise of a broker to manage the sale process for them.

Merging with an existing industry business

You may want to approach other business to consider consolidation or acquisition of your business for sale. There can be some advantages in engaging a Business Broker for this as they can control the information and negotiations on your behalf.

CPI Business Sales offers this service.

Family succession

This is usually where there is an internal succession plan of a family member taking over the business. This may be by way of a cash purchase, gift or future dividends.

This is something that needs careful planning with your accountant or financial advisor to take into account tax and legal structure implications.

CPI Finance can assist with funding requirements. 

Close the business and cease trading

Sometimes a business has been winding down for retirement or other reasons. In this case you should seek professional advice from your accountant.

Forced closure

Any situations of liquidation or bankruptcy etc. need appropriate advice from your financial and legal advisor. You should engage these professionals before making any decisions.

 

Need funding? – CPI Finance has experience and access to a range of lenders