Running a business can take its toll, personally and professionally. Business owners looking to exit the business for any reason should we well advised to plan a good exit strategy.  This helps ensure you're exiting for the right reasons, will have a good sales strategy and valuation in place, and minimise tax implications.  Just like the strategy PJT implemented for one of its clients recently...

Background
Our client is in the landscaping supplies industry, employing approx 10 – 15 staff. They are a family business trading successfully for over 30 years, until the GFC hit.  After a couple of tough years, the owners were struggling to maintain the emotional commitment to the business.
The day to day running of the business is heavily reliant on the owners, which was taking an emotional toll professionally and personally…

Client’s major issues:
-    Reduction in profits
-    A number of shareholder transactions that occurred 5 – 10 years ago were treated incorrectly
-    Emotional exhaustion and stress taking a personal toll on the family
-    They didn’t know how to get out of the business

What we advised to the client:
-    Our specialist business advisory team reviewed both the business and personal circumstances of the client.   This resulted in a recommendation to sell the business.  PJT  developed the strategy to successfully exit the business, and manage their landholdings over a number of years to minimize taxation implications.

Results:
-    The client happily implemented our recommended strategy, resulting in a successful exit from the business
-    We saved the client close to half a million dollars, by ensuring access to tax concessions
-    Their personal lives have changed dramatically for the better
-    The clients now have more free time to pursue new business and personal interests

If you're considering exiting your business, it pays to seek good advice to ensure your exit strategy is successful.  Please contact us to discuss your business, if you're considering a similar strategy.