With a major generational changeover of businesses likely to take place in the next decade or so with the retirement of the baby boomer generation, it is now more important than ever to focus on your business succession strategy.
Effective succession planning should commence well ahead of the actual departure of the business owner. When one considers how much effort, time and resources business owners invest in building the value of their business, it is a shame to see business owners losing a significant portion of the potential return from the sale of their business simply because they have not adequately planned their exit.
Starting the succession process early is especially important in family businesses. Business owners are not always accustomed to letting go of the control of the business and need to build their confidence in who will succeed them (read more). Although purchasers of businesses often place great emphasis in the quality of the existing management of the business, many family business owners are preoccupied with or fearful of losing control, or have never turned their mind to anyone else ‘driving’ the business. It is essential for family business owners to recruit and develop individuals (including children) who are or who can be trained to carry on with the business.
A considered succession plan is an opportunity for business owners to maximize the potential value of their business and their wealth upon their exit and consideration should be given to the following elements:
• identifying a successor (read more)
• how to stand out from the crowd (read more)
• terms of sale (read more)
Our Ownership Succession Service
We understand that planning for the succession of a family business is akin to planning to maintain family harmony. Whether you are passing on your business to family members, existing management or a third party buyer (or a combination thereof), FBCN’s supportive and qualified advisers can work collaboratively to assist you achieve your goals.
Read more or contact us for an obligation free conversation.