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2019 is nearly here. Are you succession ready?

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2019 is nearly here. Are you succession ready?

By , December 19, 2018
2019

The biggest barrier to business owners exiting successfully and not extracting the value they deserve from their business is TIME. Those that “Begin with the end in mind” and plan their business succession and exit strategy early enough will always be more successful. They’re focused on the key value drivers that build the business and make it possible to achieve maximum value at the time of exit.

Good strategy takes time. Locking in your key employees, documenting the value enhancing aspects of the business and making sure it is not key person dependent (on you) all takes time – time you don’t have if you leave it too late!

Some exit strategies – a management buy-out or Employee Share Ownership Plan – can take years to implement. With more sales requiring an element of vendor financing, you cannot decide to retire in 2025, at the age of 70, and start working on your plan in 2024. The best results come with a 3– 5-year timeframe allowing you to select the best exit option, plan the appropriate succession strategy and implement the plan effectively.

Successful succession planning involves preparing the business, your financial position and you personally for retirement and exit. Being half prepared is not good enough!

Craig West

Craig West

Managing Director | Succession Plus

Craig West is a strategic accountant who has over 20 years’ experience advising business owners. His background as a CPA in public practice, provided invaluable experience in the key issues of concern to business owners. Following 6 years of study to gain two masters degrees, Craig focused on Capital Gains Tax (CGT) for business sales advising on strategic management of tax issues. This experience formed a very strong view that business owners (and often their advisers) were unprepared and unaware of the steps required to prepare a business for exit.

Craig now acts as a strategic mentor for mid-market business owners and has written four critically acclaimed books on employee incentives, succession planning, asset protection and exit strategies. Craig has conducted numerous seminars and keynote presentations throughout Australia & internationally, including adviser education programs for the Institute of Chartered Accountants and CPA Australia.