Maximising value at exit

Despite the downturn, or maybe because of it, many business owners will still be considering when they might leave the business and either retire or start another one!
The best deals are always those that have been carefully planned over a relatively long time – at least a year, more often three or four years. It’s not just about how good your business is, it’s about how good it might be in future – the opportunity for the purchaser. You and your advisers have to understand what is important to any potential buyer – and they may have very different agendas.
Managing an exit is very time consuming and – we would say this of course – your best decision may be to appoint appropriate advisers early on, agree the objectives and leave them to it. You need to concentrate on making certain there’s still a saleable business at the end of the process, so choose your advisers carefully and then let them drive the transaction to a successful conclusion.

The Snowball – Warren Buffett and the business life

This account by Alice Schroeder of the life and times of perhaps the best known of all investors is perhaps timely and will make interesting reading for any business owner.
Buffett always appears to be betting against the trend – as his recent multi-million dollar investment in Goldman Sachs demonstrates and when he famously avoided getting sucked into the dot-com bubble at the turn of the century.
It’s a fascinating book, particularly at the present time, but it should be remembered that he is perhaps best known for his views on the wisdom of investing for the long term and that he has recently given most of his wealth to the Bill and Melinda Gates foundation. Warren Buffett is definitely a one off – and this is a valuable book for anyone interested in business or investment.

How to lead your firm through the recession

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  Understand where your business stands and how the sector is performing.
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  Act decisively – don’t get paralysed by fear, try and identify new opportunities.
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  Cash is king – it always has been and always will. Get advice to improve cash retention.
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  Focus on customers – cash may be king, but customers are also vital to success.
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  Be future savvy – don’t panic, try and plan for the upturn as well as survival.
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  Innovate – cuts in R&D may help short term cashflow, but again look to the future.
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  Invest – many companies will struggle, so look for acquisition opportunities.
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  Keep your staff happy – you may need their support if times do get hard.