How to avoid three pitfalls of exit planning

 

Market interest in buying businesses is starting to pick up again and valuations are returning to more realistic levels; therefore 2011 may bring new opportunities for exits. Capital gains tax relief has become more generous with the increase in the level of entrepreneur's relief available, so that sellers are now able to benefit from a tax rate of 10% on the first £5million of gains; the remainder being taxed predominantly at 28%. Therefore the tax position for the seller can be relatively advantageous and it is an attractive proposition to build up a business for future sale.

 

Exit planning does however require careful consideration and a clear plan from the outset if you are to realise the full value of your many years of hard work. From our experience there are 3 main aspects to building a business which will help to maximise its value o