Exit Planning Advisory for SME's

What is an Exit Plan?

Exit plan is when an entrepreneur plans on exiting his business for the highest possible value within a defined time period.

Possible triggers to exit a SME business are: 

  1. Lack of succession
  2. Waning interest in heading the business
  3. Personal issues taking over e.g., health problems
  4. Future of the business is not promising

SME promoters face difficulty in attracting buyers due to SME’s inherent weaknesses like:

  • Modest scale of operations
  • Limited professionalisation of the management
  • Low transparency in books of accounts
  • Poor adoption of technology & digitalisation
  • ESG is given lower priority 

Steps for an effective Exit Plan

  1. Taking the decision to exit!
  2. Assess the current state of the business to get a handle on it’s potential value
  3. Formulate exit goals – value expectation & time lines
  4. Formulate execution strategy and implement it
  5. In parallel, prepare an estate plan to optimise personal wealth management
  6. Conclude the exit