Last week we looked at the results of the 2013 MGI Australian Family and Private Business Survey (Read part 1)
Succession (or exit) will happen to you sooner or later, and it is important to take charge and manage the process rather than just let it happen to you. I have worked with many business owners who have successfully done this, and in so doing have devised excellent exit strategies. They have managed to substantially improve the value of their business, find a strategic buyer to preserve (and often improve) their legacy, and been able to fund their retirement.
We employ a 21-step process with clients to create a business succession policy (often over three to five years) and this process has been specifically designed to achieve the best possible exit outcomes for the business owner.
The most important lesson of all is to ‘begin with the end in mind’ – design the business, implement your strategy, and recruit the right people with your exit in mind. The alternative is to be the passenger throughout the journey to the exit, unable to influence the direction and outcome, and not the driver!
Achieving a successful outcome is really focusing on two areas. The first, which we’ll look at now, is internal – the key things to focus on in the business to ensure it is valuable, attractive and saleable.
In my experience there are eight key areas:
NEXT WEEK: The external factors that will attract the right buyer for a business at the right price when the time to exit comes.
Craig West, CEO, Succession Plus