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Extracting the Value of your Business

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Extracting the Value of your Business

By , March 15, 2019
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For those Business owners nearing exit, a big important life event, we are observing more and more knowledge of the demographics and circumstances around it. Barely a week goes by when a business owner does not approach us to say:

“I have about 18 months or 2 years before I would like to retire:
how can I best utilise my time and resources?”

What this represents is a much greater awareness among business owners of the need to prepare, not pray, for a successful exit. There are some high-value projects we came to so routinely recommend they formed our 21 steps program for exit readiness. We organised these 21 steps into 5 stages, all around maximising the value of the business.

Following on from the Maximising Value, the fourth in this series of stages focuses on extracting the value of your business.

 

Stage 4: Extract Value

  • Step 16 What a buyer pays for your business is not necessarily what you receive in your wallet, the Tax Office will insist on their part. There are strategies you can implement to maximise your net proceeds, but they often take time to season.
  • Step 17 A disorganised seller is asking for the buyer to downgrade the price and terms. Step 17 is about getting on the front foot as a vendor, and controlling the process.
  • Step 18 The actual sale itself.

Ready to take the final steps? Discover Stage 5: Manage Value.

Craig West

Craig West

Managing Director | Succession Plus

Craig West is a strategic accountant who has over 20 years’ experience advising business owners. His background as a CPA in public practice, provided invaluable experience in the key issues of concern to business owners. Following 6 years of study to gain two masters degrees, Craig focused on Capital Gains Tax (CGT) for business sales advising on strategic management of tax issues. This experience formed a very strong view that business owners (and often their advisers) were unprepared and unaware of the steps required to prepare a business for exit.

Craig now acts as a strategic mentor for mid-market business owners and has written four critically acclaimed books on employee incentives, succession planning, asset protection and exit strategies. Craig has conducted numerous seminars and keynote presentations throughout Australia & internationally, including adviser education programs for the Institute of Chartered Accountants and CPA Australia.