Don’t wait years to find out your succession plan was unrealistic

How to maximise the value of your business on exit

This may be contentious however we see succession as a defensive word that empowers the successor and weakens the position of the Vendor or major shareholder. The standard definition of succession is the process of determining both the method of transfer of ownership of a business interest as well as the transition of its management control. But the reality, from all the business owners and Vendors we have spoken to is that when someone asks about succession the real underlying question they are asking is:

“How can I exit my business on my own terms, achieving the best possible value in the timeframe of my choosing?”

For now let’s forget the fancy language, succession checklist and complex strategies and begin with the first and foremost question. And it is a simple one …….

“What do you want?”

On a plain white piece of paper can you clearly articulate?

  1. What is the ultimate outcome you would like?
  2. What is the timeframe in which you would like to achieve this outcome?

The Reality Check

Next is a reality check. There is no point in sitting comfortably for a few years assuming your expected outcome is easily achievable only to find out that these expectations were unrealistic.  By this stage it is often too late and your need to exit is greater than your ability to identify your ideal outcome, therefore your position is weakened

The reality check is to check your assumptions against the experiences of people who have gone through the process successfully as well as speak to people who have a strong understanding of the current market.

Growth Focus has current data plus anonymous case studies to share should you wish to test your assumptions. Feel free to call Steven Fine directly on 0414299153 for current market feedback and numerous succession case studies.

Buying or Selling an Accounting Practice

Buying or Selling a Financial Planning Business