Member’s Dashboard My Account Exit Strategy and Succession Planning Completed by: First Name Text Last Name Email 1. Do you have a clear exit or succession plan for your business? Yes, absolutely. We have been grooming family members to take over the business for the past couple of years. They have the same set of values and the required skills, as well as an intimate knowledge of the business, our industry and our customers. Yes, our major opposition has continually expressed an interest in our business and our client base would complement theirs and provide economies of scale in their operations, but the timing of our exit remains uncertain as our extended family is totally reliant on the business for their income. Yes, we have a robust shareholders agreement with buy sell clauses as well as a formula governing the process around the sales of shares and the determination of the price between partners. Yes, to a degree. As an attractive profitable business, we have many potential buyers but they are all looking for a retention and claw back on the price if certain profit hurdles are not met. As existing owners we would also be required to remain on in the business for a minimum of 3 years subject to strict restraint of trade conditions. No, we have no clear exit plans and whilst the business has been offered for sale to quite a few people, it does not appear as if it will be able to sold as a going concern and will not realise anything more than the resale value of the newer plant, machinery, tools and equipment. No, not at all. We have no exit or succession plans in place. 2. Is your business an asset of value and a business that can be taken to the next level? Yes, we have well-defined responsibilities and accountabilities between the partners/owners as well as a clear vision to take the business to the next level. Yes, to a degree. We are aware that the timing of our exit is critical, but we don’t feel that we have fully unlocked the potential in the business yet. No, not really. Despite mediocre performance, we are emotionally attached to our business and see it as our baby and this going to make it very difficult for us to exit or sell it. No, unfortunately not. As a family business we are paying salaries to meet lifestyles in excess of what the business can afford and this is having a detrimental effect on the financial performance, growth and viability/sale-ability of the business. No, ours is a classic lifestyle business which is proving less and less viable as costs rise and revenues come under pressure. Our only hope might be to give up considerable equity and bring in a partner in order to diversify the business if we are to survive and grow. No, the cash reserves in our business have been greatly reduced due to pre-inheritance payments being made by the founder and major shareholder to his family beneficiaries. No, not at all. We are aware that over 94% of businesses never get sold and this concerns us as we have been relying on the sale of the business to provide our retirement capital. 3. Does your business have a steady predictable revenue stream and is it likely to remain profitable enabling a relatively easy exit? Yes, absolutely. We believe we have created and built-up a lot of goodwill and brand value in our business that isn’t reflected in our balance sheet. We believe that we have a unique selling point and competitive advantage which should ensure continued, steady and profitable growth. Yes, contracts form a major portion of our business and this ensures that we earn on-going annuity income. Our contracts are for fixed terms of between 12 and 24 months, are renewed annually, are with reputable counterparties and are all profitable. Yes, to a degree. Given our profitability, our accountants and advisors have placed a high valuation on our business, but from discussions with various parties the multiple seems far too high and unrealistic and we are unlikely to get our price. No, not really. We are in a dying industry and our financials reflect our ever deteriorating performance which will make our business largely unsaleable unless something dramatic is done to reinvigorate or reinvent it. No, our future revenue streams and cash flow are highly unpredictable due to intense competition, disruption, cheap imports, new technologies and ever escalating cost pressures. No, not at all. While our business is marginally profitable, our tax affairs are not up to date and there is pending litigation against the company, both of which could have a major bearing on our financial position. 4. Can you easily exit your business without any inhibitors to its sale? Yes, definitely. The profitability and strong cash flow in the business should make exit and saleability fairly easy. Yes, ours is a very specialist services business and any sale is likely to see the owners lose control of the business, but being contractually locked into its employ to ensure that the business delivers on forecasts, and hence remaining vulnerable to the potential performance downside. Yes, to a degree. While we have a very good and solid business, it is just too small to be considered as a viable acquisition for a big business or global organisation. The sale price is also likely to be out of reach for most other smaller businesses or private investors. No, not really. While we believe our business is saleable, we do not know if the bank will release us from our personal sureties held by the bank in respect of overdraft and other business related financial rental obligations or whether our landlord will release us from our suretyships in support of our lease. No, we have a long running legal dispute e.g. over a contract/supplier/creditor/shareholder, and while this remains unresolved, the business is unsaleable. No, not at all. We have a large unproductive militant labour force and this is going to make our business unattractive to any potential serious buyers. Score Score 0 to 29 Your score indicates that there is a lack of Exit Strategy and Succession Planning controls and/or discipline that exposes your business/organisation to massive risk. We suggest that you URGENTLY address the issue of risk management generally, and also identify the biggest risks individually and put the necessary policies and programmes together without delay to minimise these risks. Score between 30 and 44 Your score reveals that your Exit Strategy and Succession controls and or discipline are weak and expose your business/organisation to significant risk. We suggest you address the area of control risk as a priority and look to make improvements in this area as soon as possible. Score between 45 and 54 Your score suggests there are significant potential weaknesses in your Exit Strategy and Succession controls and that this should receive attention as a matter of priority. While an overall improvement may be required, it is also possible that your vulnerability is limited to one or two areas. Score between 55 and 64 Your score suggests you could and should improve your exit Strategy and Succession controls, but that this area probably doesn't represent a massive risk (generally). There may however be some vulnerability in a couple of areas that should be addressed in the reasonably near future. Score between 65 and 79 Your score suggests that you probably have strong Exit Strategy and Succession controls and are therefore probably not hugely at risk. We would however recommend that you identify possible areas of weakness and address these in due course. Score 80 and above Your score suggests that you have strong Exit Strategy and Succession controls and have therefore greatly reduced your risk in this area. We would however still advise you to identify possible areas of weakness and address these in due course. reCAPTCHA Submit