Key Trends for Businesses in 2016 - Succession Plus

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Key Trends for Businesses in 2016

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Key Trends for Businesses in 2016

By , August 31, 2016
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2016 has highlighted a few trends affecting business valuation. The latest research from the Exit Planning Institute’s 2016 ‘State of Owner Readiness Survey’ reveals that:

 

1. Business owners are increasingly unprepared for exit

This leaves them unprepared for retirement. In fact, data from HSBC Future of Retirement Report (2015) shows that 45% of business owners (up from 31% in 2010) do not have adequate funds for retirement.

Why does this occur?

 

2. Business owners are consistently struggling to plan ahead

76% of business owners plan to transition over the next 10 years. Despite this, 66% do not have a formal succession plan in place. This inevitably leads to 4 in 5 businesses unable to sell in the market. If you do not have a clear idea of your end plan, you will never be able to unlock the value which you have built from the ground up as a business owner and truly reap the rewards of your effort.

Understanding business valuation is the first step in maximising value and achieving a successful exit.

For more on business valuation, sign up to CEO Craig West’s webinar on Business Valuation on 6th September 2016.
In this session, Craig West examines various aspects of business valuation including:

  • Valuation theory and methodology
  • Assessing risk in SME’s
  • Cost of Capital – why is this important anyway?
  • Reasonableness test
  • Valuation case studies

Craig takes you through a practical approach to the critical area of business valuation, as well as how to use the trends above to drive your business value.

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.