It’s your business, you’ve worked hard to get it to where it is and you’re very proud of your achievements. But have you thought about who would take over the business when you retire?
This is potentially a one-off opportunity to realise the value of a lot of hard work. It is therefore vital to maximise this value and a succession plan will help achieve this.
In our experience only a small minority of businesses have considered this and put succession plans into place. Succession planning is a critical factor in the future success of your business, and, we find that those who have put succession plans into place receive greater rewards.
A lack of succession counts for 30% of closures, so it’s essential that you consider your options. Increasingly, a family handover is also not the answer for family run businesses and 'do nothing' is not an option if you want your reward.
A proactive exit, whether done over months or years, will lead to much higher rewards compared to a reactive sale. If it is done well, it can result in a premium being paid by a buyer.
It will also help you to plan for the future better, and, balance the needs of management with your own, your families and other shareholders.
We have a great deal of experience in helping businesses with their succession planning. If you would like to chat to us about how we can help you with succession planning, then please get in touch