Agile Executives, in collaboration with PTSB, Circulo, and Novem, recently hosted the “Exit strategy , Preparing your business for a successful sale” event. Tailored for entrepreneurs contemplating major business transitions , whether selling, transitioning, or acquiring a business in the next five years , the event provided attendees with expert guidance on maximising business value, tax planning, and exploring funding solutions for management buyouts (MBOs) and management buy-ins (MBIs). Industry leaders shared actionable insights to help business owners navigate the complexities of these processes and ensure a smooth transition or exit. 

Key takeaways:

Tony Dignam , Managing Director, Agile Executives 

  • It is never too early to start the exit planning process. 
  • Maximise the value of your business by driving sales and profit. 
  • Use grants and supports that are available to help you on your journey. 
  • Get help from the right people to help you maximise the value of your business. 
  • Automate and systemise your business to enhance efficiency. 

Paul Hennessy , Fractional Sales Leader, Agile Executives 

  • Preparing your business for exit is similar to seeking investment; be clear and objective about your opportunity. 
  • Define your value proposition and know why customers buy from you. 
  • Understand the size and value of your target market and how you will bring your product/service to market. 
  • Demonstrate that you have high-performing teams who support a shared vision, with the best processes and procedures in place. 
  • Leverage technology where appropriate to improve operations. 

John Kenefick , Director, Novem 

  • Start exit planning early , it can take time to prepare and resolve issues. 
  • Understand key considerations around tax legal, normalised working capital, etc. 
  • Understand who will be operating the business after you leave. 
  • Understand what will drive your exit multiple and what you can do to address this.

Mark Doyle , Director, Circulo 

  • Early consideration of the tax aspects on a potential sale is often a very worthwhile exercise. 
  • There are reliefs from Capital Gains Tax (CGT) on a sale of shares such as retirement relief or entrepreneur relief; these should be availed of where possible. 
  • Care is needed around the financing of the sale of shares in a company to ensure that a charge to income tax does not arise on the sale for the exiting shareholder. 
  • It is possible to restructure a company ahead of sale to allow for the separation of assets or to transfer a business to a new company that can then be sold. 

Robert Kelly , Business Banking Manager, PTSB 

  • Quality, timeliness, the provision and presentation of financial information are key to allow for a quick response on an application for lending to assist with funding of an MBO. 
  • Detailed proposals including a breakdown of the share purchase agreement, the experience and capabilities of the new owner/management team and the future plans/growth prospects for the business, are integral. 
  • Be cognisant of what the security package will comprise, what the conditionality of a deal might involve and the associated legal fees and company law requirements. 
  • Key credit metrics to consider are Loan to Cost (the amount of equity input from the borrower), Gross Leverage (ensuring the loan size is appropriate without over-leveraging), and EV LTV (assessing Enterprise Value and its relation to the loan). 

We hope you found the event insightful. If you have any further questions or would like to discuss your business's valuation, please don't hesitate to reply to this email or book a call.   

https://youtu.be/GCLXqH_p27M

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