Exit strategies: from moment of sale to plan for the future
Selling a company generates capital, but also creates new challenges. By exploring scenarios at an early stage and involving experts, you can transform an exit from an end point into a strategic step forward.
This article was originally published on the De Tijd website as part of a sponsored collaboration. You can find the original article at tijd.be.
A liquidity event – the sale or partial sale of a company or a portion of it – marks both an end and a fresh start. It generates capital, but also raises questions that go beyond the mathematics. What does this mean for you as an entrepreneur who may be letting go of your life’s work? How will the family stay involved? And what will be done with the capital that is released?
The clock is ticking faster than you think
‘This isn’t a process that starts a few months before a deal. It’s a journey that takes years, in which the family is involved right from the start,’ says Dieter Verbeek, Head of Wealth Management Flanders at ABN AMRO MeesPierson.
‘The biggest mistake is starting too late: bear in mind that there’s much more to this than simply optimising structures and compiling figures in a spreadsheet. An exit always has an emotional side to it. It affects not only the entrepreneur, but also his or her partner, children and wider family members with close ties to the company, and it’s just as important as the company’s valuation or optimising tax structures.’
According to Verbeek, it is therefore crucial to explore scenarios well in advance, consider possible options and seek expert advice, without sticking to rigid plans.
‘The reality is constantly changing: economic circumstances, family relationships and personal preferences can all shift. But if you think things through in advance and seek advice, you can make calmer and more conscious adjustments in the here and now. A reliable network of experts – tax, legal, banking – is a key part of this right from the start. Because after getting started too late, trying to sort out everything yourself is probably the second major mistake.’
Bankers aren’t just bankers any more
This approach also means that the role of the bank is changing. It used to focus primarily on financial transactions, but it is now increasingly taking on the role of orchestrator. ‘We’re a partner for entrepreneurial families,’ says Verbeek.
‘We bring together tax specialists, lawyers, wealth planners and credit and investment specialists – both internal and external – so that the family gains a clear overall picture and can make better-informed decisions. An exit isn’t an end point: it requires aftercare and guidance. One entrepreneur will spontaneously start investing in new projects, while the growth of the family’s wealth is the main concern for another. Yet another leaves some space open for philanthropy. This always requires a personalised approach.’
‘The first steps are clear: identify the family’s wishes and expectations in good time and discuss what role each one still wants to play. Also, surround yourself with a strong network of experts. Only then will you receive advice that holds up in practice, so that an exit isn’t a leap into the unknown, but a conscious step towards the future.'