Surrey-based accountants, TWP Accounting, say that recent data demonstrates the need for business owners to embrace and develop their exit strategy.

As economic growth continues to recover, more business owners are looking to sell to larger firms to achieve accelerated growth, or else take the opportunity to retire.

Others face difficulty, with only 14 per cent seeing an increase in turnover in September 2023, despite rising prices – as well as a slowdown in hiring due to rising employment costs as wages outpace inflation for the first time since October 2021.

What this picture reveals, says the firm, is a shifting business landscape where a strong exit strategy needs to exist alongside long-term plans for growth.

Paul Hawksley, Managing Partner at TWP, said: “There are many reasons business owners may choose to employ their exit strategy and sell the business. Rising costs are a significant one, but it’s likely that this is a temporary pattern while the dust settles on the past few years.

“Retirement and the pursuit of growth are likely to be far more significant factors in the long term. There’s a general recognition that, as the UK’s economy recovers, there will be more business opportunities – and this may present the perfect time to sell up or retire.”

“Selling your business can be a difficult decision, but it can also be a hugely beneficial one. With a rigorous exit strategy, business owners can enhance their decision-making and arrive at a solution that’s right for them.”

The firm advised that seeking support from business accounting experts is essential to optimising an exit strategy and taking all factors into account, including:

• The value of assets
• Organising business finances
• Legal due diligence
• Tax planning
• Personal finance for business owners

Paul concluded: “Just as there are many reasons for using an exit strategy, there are many ways of implementing it. Business owners might consider family succession, selling their stake to a partner, sale to investors, management buyouts, or liquidation.

“Whatever form an exit strategy takes, the most important factor is that it serves the purpose of the business owner and its assets.

“For end-to-end support with their exit strategy, I would urge all business owners to consult a seasoned professional to ensure they’re getting the most out of their business, even at the end.”

TWP Accounting provides straightforward advice on business services and corporate finance. Contact our team of experts today for advice and practical support.