Succession and Exit Planning
Most business owners go into the business to create wealth out of an idea or passion they have. Most time is focused on growing the revenue and increasing the profit line, that most do not spend time planning on what a successful exit could look like.
We do know that:
- The average age of a family business owner in Australia is 56years
- 61% would seriously consider selling if approached.
- 51% of business owners plan to use their business as their primary source of funding retirement
Why consider succession and exit planning for your business? We know from experience and backed up by research conducted in Australia that:
- 31% of retired business owners do not have an adequately funded retirement.
- 55% of all business exits are due to death, disability, bankruptcy, receivership, liquidation or simply closing the doors.
After all the time, hard work and sacrifices you have put into building your business, are you ready to sell if you had to? Is your business really worth what you think it is? Are you prepared for the unexpected?
As highly experienced and qualified exit planners as well has experienced M&A Advisers, we can help develop an exit plan for your business by:
- Identifying how much you need to sell your business for to fund your future.
- Understanding what the value of your business is today.
- Determining what the gap is between what your business is worth today and what we need to sell it for in the future.
An exit plan documents what strategies you need to implement to enhance the value of your business by getting it ready to sell and getting it attractive to potential buyers.
Business Value Improvement Scorecard
This is where the real value is created. The Business Value Improvement Scorecard takes the Succession and Exit Plan to another level of detail by defining the key levers to increase value and make your business more attractive for sale. The Business Value Improvement Scorecard will document in detail key milestones, individual accountability and timeframes to deliver.
Depending on when your timeframe and definition of exiting your business, we will work closely with you to help you set realistic and achievable goals and ensure that you have adequate resources to achieve your exit strategy.
Exit Plan Implementation
The best business strategy or plan is really just good intention unless you know how to convert the plan into work, tasks and responsibilities. We use two powerful tools, our Business Value Improvement Scorecard and our Business Advisory Board that will help check your progress and hold you and your team accountable for achieving what you want to achieve.
As part of the Advisory board we will meet with you to focus on the execution of your succession or exit strategy. This creates an excellent forum to ensure that you maximise the value in your business before your exit. We will give you objective, external advice, that ultimately will help you to maximise sales price.