Have you considered Succession Planning as part of your overall business plan? Do you know why it is important and how you could be impacted if you do not have an exit strategy when it is time for you to retire?
Many Warrnambool business owners know that Succession Planning is important, but often put it on the ‘to do’ list. Often this is because the issues associated with Succession Planning can seem too difficult or overwhelming for business owners to deal with on their own.
At Sinclair Wilson, we have been dealing with these issues for more than 65 years and understand the complexities associated with transitioning businesses to the next generation or to a new owner.
Where the business is being transitioned to family members, communication plays a vital role in the process to ensure that all stakeholders are aware of how and when the transition of the business will occur. We have encountered a number of instances where parents have expected that their children would want to take over the family business, but when it came time to do so, the next generation declines the opportunity. In these cases, significant heartache would have been avoided by discussing Succession Planning earlier in the business life cycle.
When the succession plan involves the sale of the business to an external party, it is important to work on the business in the period leading up to the sale to ensure the business is as attractive as possible to potential purchasers in the market. This may include working on ways to maximise business profits, systematise key processes or retain key personnel. Starting the succession planning process early can make the business marketable to a wider range of potential purchasers and maximise the likelihood of a successful sale outcome.
Please Contact Us for more information, or visit one of our offices at Camperdown, Colac, Hamilton, Mount Gambier or Warrnambool.