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Succession and Exit Planning

Succession and Exit Planning

Your Plans For Business
Succession and Exit

Whether you’re looking to sell, pass on or close your business, we at Moneytree Wealth Management provide expert guidance to business owners and help them navigate the complexities of succession and exit planning. From tailoring our strategies to your unique situation to ensuring your goals are met, we look to maximise the value of your business, create smooth transitions and minimise potential risks. By supporting you in identifying the right exit strategy, we can ensure your legacy is protected.

Ensure a Smooth Transition Protect Your Life's Work

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Evaluating Your Business and Its Goals

We begin by understanding your business, its value and your personal objectives for exiting. This helps us develop a tailored plan that aligns with your vision for the future and a smooth transition for succession.

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Identifying Potential Successors or Buyers

Upon understanding your goals, we’ll then help you identify the best candidates for succession – whether that’s a family member, business partner or an external buyer. During this time, we’ll explore various exit routes to ensure the most beneficial path for you and your business.

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Maximising Business Value

Our expert advisors will work closely with you to identify the opportunities to increase the value of your business before you exit. We will focus on operation improvement, financial health and market positioning for sale or transfer.

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Developing a Transition Plan

Lastly, we create a detailed transition strategy that ensures a smooth handover to the successor. This may include tax planning, legal considerations and structuring deals that meet your financial and personal goals.

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Frequently asked questions

What is succession planning?

Succession planning involves identifying and preparing future leaders or owners to take over a business. This ensures continuity, protects the business’s future, and aligns with the owner’s long-term goals.

Exit planning is the process of preparing a business and its owner for a future sale, transfer, or transition. It includes financial, operational, and legal strategies looking to maximise business value and achieve personal goals.

  • Ensures the business continues successfully.
  • Protects the financial future of the owner and their family.
  • Minimises tax liabilities during the transfer of ownership.
  • Retains key employees and customers during transitions.

Ideally, planning should start 5-10 years before the intended transition. Early planning allows time to address operational inefficiencies, groom successors, and optimize business value.

  • Family succession: Passing the business to family members.
  • Management buyout (MBO): Selling to existing management.
  • Employee ownership: Transitioning ownership to employees, often through an Employee Ownership Trust (EOT).
  • Trade sale: Selling to another business or competitor.
  • Private equity sale: Selling to an investment firm.
  • IPO (Initial Public Offering): Taking the business public.
  • Family or personal preferences.
  • Financial needs of the owner.
  • Business size and industry.

  • Market conditions and buyer interest.

  • Tax implications of the sale or transfer

  • Increase profitability: Focus on improving margins and reducing costs.

  • Organize finances: Maintain accurate, transparent financial records.

  • Build a strong team: Reduce reliance on the owner by delegating responsibilities.

  • Document processes: Ensure all key business operations are well-documented.

  • Diversify revenue streams: Reduce dependency on a few clients or products.

Business valuation typically considers:

  • Earnings: Using EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) multiples.

  • Assets: Value of physical and intellectual assets.

  • Market conditions: Demand for similar businesses.

  • Professional valuation services can provide an accurate assessment

  • Capital Gains Tax (CGT): Payable on profits from selling a business, but reliefs like Business Asset Disposal Relief (formerly Entrepreneur’s Relief) may apply.
  • Inheritance Tax (IHT): Plan for IHT if transferring ownership to family members.
  • Stamp Duty: Applicable on business assets or shares in some cases.

  • Identify successors: Choose family members willing and able to lead.

  • Training: Provide them with the skills and experience needed to succeed.

  • Formal agreements: Establish clear roles, responsibilities, and ownership terms.

  • Conflict resolution: Address potential family disputes through mediation or legal structures.

An EOT allows a business owner to sell shares to a trust, which operates for the benefit of employees. Benefits include:

  • Potential Capital Gains Tax (CGT) exemption for the owner.
  • Improved employee engagement and retention.
  • A smooth transition process.

An MBO occurs when the current management team purchases the business from the owner. Advantages include continuity and familiarity with operations. Owners may need to help finance the buyout or accept staged payments.

  • Demonstrate strong financial performance.
  • Highlight competitive advantages and growth potential.
  • Showcase a loyal customer base and recurring revenue streams.
  • Work with a broker or advisor to find and negotiate with potential buyers.

Advisors help with:

  • Business valuation.
  • Structuring the deal or transition.
  • Tax and legal considerations.
  • Negotiating terms with buyers or successors.
  • Ensuring alignment with the owner’s goals.
  • Lack of willing or capable successors.
  • Emotional attachment to the business.
  • Disagreements among stakeholders or family members.
  • Underestimating the time required for planning and preparation.

  • Communicate openly with stakeholders (employees, family, buyers).

     

  • Establish clear timelines and milestones.

  • Retain key employees to maintain stability.

  • Gradually transfer responsibilities to successors or new owners.

  • Small businesses: Often involve family succession or individual buyers. Valuation and financial transparency are key challenges.

  • Large businesses: May involve complex tax structures, multiple stakeholders, or public listings. Advisors play a crucial role.

Post-exit, consider:

  • Wealth management: Invest proceeds to secure your financial future.

  • Tax planning: Mitigate tax liabilities on the proceeds.

  • New ventures: Some owners reinvest in new businesses or philanthropic efforts.

Yes. For example, you might:

  • Transition leadership to a successor while retaining partial ownership.
  • Sell a portion of the business while remaining involved as an advisor or board member.

Yes, especially for tax efficiency, legal compliance, and maximising business value. Look for experienced accountants, financial advisors, and legal experts familiar with succession and exit strategies.

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Business Details

01244 470 107

enquiries@moneytreewm.co.uk

Moneytree Wealth Management
Talbot House
Albion Street
Chester
England
CH1 1RQ

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Moneytree Wealth Management Limited is an appointed representative of Quilter Financial Services Limited and Quilter Mortgage Planning Limited, which are authorised and regulated by the Financial Conduct Authority. Moneytree Wealth Management Ltd. Registered in England and Wales, under no. 07399360.

Approved Quilter Financial Services Limited & Quilter Mortgage Planning Limited. 5th May 2025.

Registered office address – Talbot House, Albion Street, Chester, England, CH1 1RQ

Holiday Home Mortgages, Powers of attorney, Will writing, Tax Planning, Trusts, Estate Planning, Inheritance Tax Planning, Some Employee Benefits, Some Buy to Let Mortgages, Exit planning, Succession Planning, Legal advice, Commercial Mortgages and Auto Enrolment are not regulated by the Financial Conduct authority.

The guidance and/or information contained within this website is subject to the UK regulatory regime and is therefore targeted at consumers based in the UK.

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