TRUST A GLG LEGAL BUSINESS GROWTH & BUSINESS EXIT STRATEGY CONSULTANT

All business owners should consider having strategies in place to deal with potential business growth. By having these strategies, your business will have certainty in how it responds to certain situations. When it comes to strategising your business’s growth or business exit strategy planning, having a dedicated legal expert by your side can make all the difference.

WHAT IS A BUSINESS GROWTH STRATEGY?

A business growth strategy is a plan that articulates the methods in which your business will engage to grow business. By instilling a strategy in your business’ approach to growth, you minimise the risk of your growth affecting your cash flow.

At GLG Legal, we can assist you in determining what strategies are the most appropriate for your business and its growth. Our lawyers can assist you in implementing these strategies into your business by drafting legal documents.

WHAT IS A BUSINESS EXIT STRATEGY?

As the name suggests, a business exit strategy is a plan that sets out how you as the business owner will exit the business. There are multiple methods by which you can exit your business, some voluntary and others involuntary.

There are five main business exit planning methods to choose from, depending on your personal and business goals. These exit options are:

1. Selling the business to another individual or corporation
2. Transferring your shares in the business to another individual or corporation
3. Partnership dissolution
4. Involuntary liquidation
5. Winding-up

Generally, most business owners elect to exit their businesses in accordance with methods 1 to 3 above as these options ensure that the business is kept alive and running. Methods 4 and 5 are often utilised when the business no longer has the capacity to run or when you wish to close down your business.

It’s important to have legal guidance when choosing an exit plan, as the right one can help to increase your business value, improve profitability and revenue growth, and stabilise cash flow during and after your exit. Having such a smooth and seamless exit will benefit both yourself and the new owners.

Our exit planning services include:

• Strategy development
• Entity structuring and restructuring
• Document preparation
• Due diligence
• Tax planning
• Exit implementation

Business exit strategy consulting is a key service at our firm. No matter what strategic exit planning method you choose or if you are unsure of which method is best for your business, please contact our commercial team at GLG Legal who will be happy to assist you in creating and effecting these strategies to ensure a smooth business transition.

POST-EXIT PLANNING

Our exit planning advisors understand that exiting your business is just the beginning, which is why we offer post-exit planning services to help you navigate and adjust confidently. Our post-exit services include:

• Retirement planning: Transitioning from business ownership to retirement requires careful financial planning. Our advisors can help you assess your retirement savings, estimate future expenses, and develop a customised retirement income strategy tailored to your lifestyle and objectives.

• Investment strategies: With the proceeds from the sale of your business, it’s essential to maximise the growth and preservation of your wealth. Our advisors offer personalised investment guidance, helping you explore a range of investment options to achieve your financial goals.

• Estate planning: We understand the importance of preserving your legacy and ensuring your wishes are carried out. Our advisors can assist you in updating your estate plan, creating a will or trust, and developing a comprehensive legacy plan to protect your assets and pass on your wealth to future generations.

• Financial monitoring and review: Our commitment to your financial well-being doesn’t end after the exit. We offer regular reviews and updates to your financial plan, ensuring that your retirement and investment strategies remain aligned with your goals and circumstances as they evolve.

WHAT LEGAL OBLIGATIONS ARE THERE IN SELLING A BUSINESS?

As the owner of the business, you owe obligations to various parties affected by your conduct, including your employees and the potential buyer/s. Such legal obligations and considerations may include:

• What will happen to your intellectual property rights in patents and/or trademarks
• Have you notified the appropriate people and organisations that you have sold your business (ATO, ASIC, etc.)
• Whether you need to cancel any permits or licences with the council
• If you need to transfer any property agreements such as leases on equipment or property
• What creditors need to be informed of your sale

Depending on your business structure as well, there will be further requirements that you will need to consider and ensure that are met prior to the sale of your business.

We have dealt with numerous business sales at GLG Legal and are well-versed in advising our clients on what legal obligations they need to be thinking about when planning to exit their business.

CONSIDERATIONS FOR THE BUSINESS OWNER

We understand the importance of keeping a business successful when a handover occurs. Not only is it important to staff who have been loyal to your business, but it is also important for your clients who have an expectation of what your business can deliver. Therefore, in addition to the legal obligations that you must meet when exiting your business, we encourage business exit strategies to involve plans to ease the transition for the staff and clients, this may include:

• Preparing senior staff through training to ensure that the skills remain consistent during the transition
• Creating and passing down strong relationships with clients to your staff who will be able to ensure that the client remains a client of the business
• Reviewing internal policies and procedures to ensure that they are all up-to-date and align with the exit strategy

By having these considerations in mind during this type of business planning and acting upon them, you will greatly help your business and its staff and clients transition when the new business owner takes over.

CONCLUSION

GLG Legal has advised numerous clients in their business growth and exit strategies. We have seen the benefits that come with planning these strategies well in advance for the business. Having an experienced business exit strategy consultant guiding you throughout the process can be the key to successful growth or a successful exit. Whether you’re thinking about growing your business, exiting your business, or even if you’re starting up a new business and want to be well-prepared, please contact one of our expert lawyers today.