Exit strategy – Preparing your business for a successful sale
Agile Executives, in collaboration with PTSB, Circulo, and Novem, recently hosted the “Exit Strategy – Preparing Your Business for a Successful Sale” event tailored for those contemplating a successful exit from their businesses. The event aimed to equip entrepreneurs with strategies to enhance their business value and provided valuable advice from industry experts on tax planning and funding strategies.
Key takeaways from the speakers:
Tax planning intricacies: Mark Doyle, Circulo Tax Advisors
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Early consideration of the tax aspects on a potential sale is often a very worthwhile exercise
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There are tax reliefs for Capital Gains Tax (CGT) on a sale of shares. These should be availed of where possible
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Care is needed around the financing of Management Buy Out (MBO) type transactions to ensure that a charge to income tax does not arise on the sale for the exiting shareholder
Financing: Robert Kelly, Business Banking, PTSB
- Quality, timeliness, the provision and presentation of financial information are key to allow for a quick response
- Key Credit Metrics in relation to Cash Flow Term Loans (which is typically what we see for an MBO/MBI) include:
- Loan size subject to a maximum leverage multiple of EBITDA (2.5x/3.0x depending on sector)
- Maximum EV LTV of 65%
- Maximum Loan to Cost of 70% (promoter should fund a minimum of 30%)
- At PTSB we remain solution focused and believe simplicity is key
Strategies to streamline your exit process: Tony Dignam, Agile Executives
It is never too early to start the exit planning process
Maximise the value of your business by driving sales and profit
Use grants and supports that are available to help you on your journey
Get help from the right people to help you maximise the value of your business
Automate and systemise your business
Management Buyouts (MBOs) & Buy-Ins (MBIs): John Kenefick, Novum
- If you are interested in an MBO / MBI but don’t have all the skills or experience we would be delighted to help
MentorsWork programme: secure your place
We mentioned MentorsWork a number of times during the presentation which is free to all businesses with less than 250 people in Ireland. You can sign up here and start getting the advice you need to scale your business and maximise the exit value in the process.
