A lot of small businesses and start-ups do not have any exit strategies when they start out their businesses. With so many things that they need to contend with putting up everything in place, exit strategies seem to be the least of their concerns.
The problem is, strategies are not something that one can formulate and implement over night. With this in mind, it is highly recommended to seek the assistance of a seasoned Melbourne accountant in planning an exit strategy in line with the preparation of the business plan.
It is quite understandable why business owners do not have exit strategies in place. After all, why would one entertain the thought of leaving their businesses just when it’s still starting, right? However, a lot of tech businesses these days have well developed exit strategies as they plan to sell their business once a certain goal is reached. It is important to keep in mind that in order to success, an exit strategy is considered a must for any type of business.
Here are some guide questions to help you work with your Melbourne accountant in formulating an exit strategy:
Do you plan to sell assets or shares? If you plan to sell assets, you will need to identify which assets you plan to sell or transfer and which ones you plan to keep. Are you selling intellectual property or know how? Are these transferrable?
When do you plan to sell your business in the future? Is there a specific goal that needs to be achieved before you put your company on the market? Take time to work with your Melbourne accountant to come up with an overview, which should include the milestones, history and strong points of the business
Part of your exit strategy is to identify who are the likely individuals who will be interested in acquiring your business and what financial documents should you ask your Melbourne accountant to prepare? Once you have an idea on the target buyers, you also need to consider the price. In order to come up with realistic projection, you need to work with your Melbourne accountant.