Every business owner will exit eventually. Whether you plan to sell in 2 years to a competitor, or in 10 years to your staff, the finance decisions you make today will directly impact the size of the cheque you walk away with.
Buyers aren't just looking at your profit (EBITDA); they are scrutinising your Balance Sheet.
Clean vs. Messy Debt
If your business finances are tangled with your personal finances—for example, your family home is used as security for the business overdraft—it makes the business very hard to sell. A buyer cannot simply "take over" the loan if it's secured by your house.
- Strategy: Move to stand-alone, asset-secured commercial facilities well before you sell. This makes the debt "portable."
Asset Valuations & EBITDA
How you finance assets matters. Operating Leases (where you rent the asset) appear differently on the books compared to Chattel Mortgages (where you own the asset). Understanding "Add-Backs" (interest and depreciation) is critical to maximising your valuation multiple.
Vendor Finance
Often, a buyer (especially staff) won't have the full cash amount. We can help you structure Vendor Finance, where you lend the buyer a portion of the purchase price. This can get a deal over the line and earn you interest, but it requires strict legal and financial structuring to protect you.
Are you building to keep, or building to sell? Let’s review your debt structure to ensure it adds value to your exit price.
