Exiting your business

Deciding to exit your business is a big step. Whether you’re ready to retire, want to move on to a new challenge or are facing financial difficulties, having a clear exit strategy will help you make the best choices for your future.

Your exit strategy will depend on:

  • the size of your business
  • its level of profitability
  • the urgency of your exit
  • any other trading and personal reasons you have for moving on.

The options and obligations for exiting your business are different for sole traders, partnerships and companies. 

There are a few options:

  • Passing the business on to family members who share your passion and vision for the business.
  • Finding a buyer who wants the best for the business and is likely to run it themselves.
  • Selling to a competitor.
  • Closing the business – finalising all financial and legal obligations through a personal decision to cease trading, formally winding up a business or liquidating assets due to insolvency.

Implications of exit choices:

We’ve put together a simple overview of the different options you can take when stepping away from your business, with links below that walk you through each one.

Whichever option you choose, you’ll need to consider a range of tax, financial, commercial and personal implications.

To make the best choice for your situation, seek legal advice and speak to a qualified accountant or financial advisor.

This is especially important if you are intending on selling your business or if your business is insolvent.