What to Do With My Business?
A recent report by Swinburne University found that 81 per cent of baby boomers (who own a business) in Australia have not completed or do not have a succession plan.
At least 400,000 businesses owned by baby boomers in Australia need a succession plan as they approach retirement.
It's my "baby" but the family isn't interested in taking it on. And maybe they're not the right fit.
Everyone says "just sell it and retire !" Play more golf. Travel. Gardening. Indulge in a hobby.
But what is the reason for selling the business? This is the 1st question you must ask yourself as owner(s).
But what if there was another way other than selling with a better outcome – both for me & my business ?
Here are Your Options
Sell It
- There are a number of sale avenues * MBO / Private Equity / Business Broker / Trade Sale * This option will require you to professionalise the business - to make it investor ready. It must be able to pass the due diligence scrutiny with flying colours in order to maximise the sale price. You will need to engage an independent advisor to achieve this * All these options though are likely to produce returns less than you have been accustomed to * There is also a personal issue - the transition from busy, committed owner to someone suddenly with a lot of time on their hands. Not always easy
Keep It - Option 1 - Family Succession
- Transition the business to the family (succession) This is the most popular option. However, more often than not your family are not willing or capable of running the business
Keep It - Option 2 - Independent Management
- Put the Business Under Independent Management * Make the business independent of you the owner(s) and you get your time back * Better finaincial returns than the other options * Preserves your legacy of having built the business * Still necessay to professionialise the business - make it investor ready * You will need an independent advisor to achieve this * You still retain the option to sell it later on * You can maintain an interest by being on the Board and providing valuable advice or utilising your contacts to help the sales team * However, will you and any other owners be able to "step away" & let the new management team manage?
We Can Help. Talk to Us Before You Make a Decision
As you can see from above, you have options. We can help you navigate them to get the best outcome for you, your family, your lifestyle & the business you've built