SMEs are the lifeblood of our economy in Wales, with many being family run or owner managed. But many business owners delay thinking about what happens when they want to sell or retire.
No matter the size of your business, it’s a good idea to plan ahead and think about how you will realise the value within your business whilst preserving your legacy for future generations. The type of strategy you adopt will depend on a range of different considerations but the most common routes to exit include trade sales, management buy-outs and buy-ins and family succession. Employee ownership models are also proving increasingly popular.
There are pros and cons to each of these options – a trade sale may provide a premium value for the business if the alignment is right for the buyer, whilst selling to the management team and employees can be less disruptive for staff and customers alike, given the ability to maintain existing culture and negotiate a ‘friendly’ transition.
