The price is right: How much could you sell your business for?

The decision to sell your business and consider what life might look like after exit is a complex and important milestone, with many tax, legal and financial implications to consider.

After all the hard work you’ve put into building a valuable asset, it’s only natural that you’ll want to reap the rewards. But getting the right sale price for your business requires both diligent preparation as well as thinking about your future lifestyle.

What's your magic number?

The first step is to calculate your magic number. We use detailed Cashflow modelling to identify your current costs and outgoings, what money you need between now and retirement, as well as any goals or objectives that you have for the future. Once we’ve established this, we can calculate what you need to exit your business to support your desired future. This is your “magic number”.

Knowing your magic number lets you see if you are on track to achieve your lifestyle and retirement goals, how much money you need to save, or how long you need to work for. It can help to answer that all-important question, ‘is now the right time to sell my business?

Knowing your “magic number” BEFORE you start speaking to potential buyers, will put you in a stronger negotiating position and can help you prepare for life after exit.?

A holistic approach

For many business owners, the sale price that you want to achieve is not the only concern. Many also care about their legacy, investing the money effectively for their future and family, and some even want a stake in the continued success of the business.

Gurdeep Lall, Chartered Financial Adviser at Rhodes Wealth Management says: “Selling a business should always be looked at holistically, considering all potential options for funding your retirement, along with any other plans you may have.”

“For example, extracting more money from your business and paying it into your pension – while leaving enough cash reserves to cover emergencies, ongoing costs and so on – can reduce risk and pressure from the sale process.”

Planning ahead lets you get your business into the best possible shape for an exit, so that when the time comes to sell, you have the flexibility to exit on your own terms and when the time is right for you.

If you’re starting to think about selling your business with a view to retirement, get in touch with me to help prepare your business for sale and achieve the future lifestyle you want.

Gurdeep Lall

Tel: 01332 497670

Email: [email protected]

?

Rhodes Wealth Management Ltd?is an Appointed Representative of and represents only St. James's Place Wealth Management plc (which is authorised and regulated by the Financial Conduct Authority) for the purpose of advising solely on the group's wealth management products and services, more details of which are set out on the group's website www.sjp.co.uk/products. The 'St. James's Place Partnership' and the titles 'Partner' and 'Partner Practice' are marketing terms used to describe St. James's Place representatives.

?The value of an investment will be directly linked to the performance of the funds you select and the value can therefore go down as well as up. You may get back less than you invested.

?The levels and bases of taxation, and reliefs from taxation, can change at any time. The value of any tax relief depends on individual circumstances.