The Global Financial Crisis (GFC) delayed the exit plans of the baby-boomer business owners, but their need to exit has not gone away. The value of the average business has been limited for a few key reasons:
Most businesses have been structured and operated with the tax legislation in mind; profit has been kept low to minimise tax.
Little effort has been invested in removing waste from the business.
Owners generally have wanted to fund their life-style, and even their children’s’ life-styles, rather that invest in growth.
Another factor is that the ability of some owner’s to manage a growing business has been limited and there has been a reluctance to learn about leadership or invest in consulting services to develop growth capacity.
There are ten steps that can be used to maximize the value of a business and these are outlined below. These steps can be grouped into three distinct phases:
One of the most important decisions an owner will ever make is how, and when, to step back while protecting the value they have created. We've broken down the four core exit routes for owner-managed businesses, and how the changing landscape affects each.
The EOT Relief Has Changed, But the Opportunity Hasn’t
The 2025 Autumn Budget reduced the Capital Gains Tax relief on Employee Ownership Trust (EOT) transactions from 100% to 50%. Understandably, this has raised questions. TC Group explains how EOTs are still a strong exit route.