Exit Strategy/Succession Plan

Exit Strategy | Succession Plan

When the time comes to know the value
of your business and get it to market,
we have got you covered.

Business valuations and share valuations

Calculating value of a business or a block of shares is challenging and complex, hence the need to hire a professional. No two businesses are alike, therefore it’s not just experience but a comprehensive understanding of the economic reality of a company which is what really counts.

While valuing shares, we will detail additional adjustments to the value of the business for any limitations on controlling rights attached to the shares and / or their marketability.

If you’re looking at selling or buying a business or a block of shares, we would be happy to provide you with an independent business valuation.

service@corebusiness.co.nz or 0211 00 66 11

Sale and purchase negotiations

Successful negotiations depend upon many factors including managing one’s mindset. Often shareholders are too close to the transaction and have an expectation of the value and post-sale obligations they are seeking.

We help shareholders and directors to become objective in their views and align their expectations with the current market conditions. To get realistic and impartial advice, get in touch with one of the CORE team today.

service@corebusiness.co.nz or 0211 00 66 11

Business cessation and exit strategies

An exit strategy is a plan that is executed by an investor or a business owner to liquidate a position in a financial asset or dispose of tangible business assets once certain predetermined criteria for either has been met or exceeded.

The plan generally also includes contingency plans to deal with catastrophic events, legal reasons such as estate planning, liability lawsuits and/or divorces, or for the simple reason that a business owner/investor is retiring and wants to cash out.

An exit strategy is generally prepared a few years (ideally two to three years) before the intended time to give enough time to value the enterprise, agree and execute a plan to grow cashflows, and to "package" the enterprise to maximise its realisable value.

service@corebusiness.co.nz or 0211 00 66 11

Shareholder agreements

A shareholders’ agreement is an agreement between the shareholders of a company. It can be between all or, in some cases, only some of the shareholders (for instance, the holders of a particular class of share). Its purpose is to protect the shareholders’ investment in the company, to establish a fair relationship between the shareholders and govern how the company is run.

The agreement will usually:

set out the shareholders’ rights and obligations
regulate the sale of shares in the company
describe how the company is going to be run
provide an element of protection for minority shareholders and the company
define how important decisions are to be made.

The shareholders’ agreement will contain specific, important and practical rules relating to the company and the relationship between the shareholders. This can be beneficial both to minority and majority shareholders.

All shareholders benefit by establishing rules for key decision making, managing rights and obligations on changes in shareholding including agreeing rules for pricing/valuing shares on changes to the overall shareholding structure or when exiting the business.

Our firm is able to help negotiate the content of shareholders' agreements.

service@corebusiness.co.nz or 0211 00 66 11