‘I attended a business seminar several years ago and the keynote speaker began his presentation by asking what we thought was the most important thing to consider when starting a business. He wrote all the suggestions on a flip chart. Then, he took a red pen and scrawled ‘No!’ right across them all. When he announced that the first thing we should all have was a ‘get-out plan’, there was a stunned silence, broken by a few laughs from those who thought he was joking. But, he was absolutely serious.
Without wishing to depress you, it has been said that there are only three absolute certainties in life. These are birth, death and taxes. The same applies to your business venture. The big difference is that you can control and plan for its virtual death, just as you did for its birth, and to minimise your tax bills. By virtual death I simply mean that the original founder (you) decides to dispose of the business for whatever reason.’ Quote from The Business Coaching Handbook
What are your options?
Your first step must be to consult a solicitor, an accountant and a qualified financial adviser and your prime objective is to gain maximum benefit whilst reducing your potential tax liabilities.
Here are somethings you might consider
Pass it on to someone in your family
If selling up is your preferred ‘get-out’ route, remember that most selling prices are closely related to turnover, profit and the value of tangible assets.
Closing the company and taking the profits.
You may receive an unsolicited offer from someone who wants to buy you out. Be careful and do your homework.
What are the components of the coaching company’s true sales value?
Premises, office equipment and other tangibles are easily recognised and can be professionally valued.
A brand name that is recognised within your industry or business specialism, this too will have a value.
Goodwill is another misty area that is almost impossible to value scientifically.